Starting an online merchandise liquidation company is hard to manage. Owning and operating any business is hard work and requires a lot of blood, sweat and tears. You will need to work diligently to make a profit and keep your head out of the water. Liquidation refers to the process of closing a business and using its assets to pay off the company’s debts. A company will usually resort to this as part of a worst-case scenario. Often, the failing company’s goods are sold to the public at a deeply discounted price to liquidate their business.
If running the business wasn’t hard enough, then keeping costs at a low is the key to turning profits and making sure you stay afloat. A profitable way to launch a new business is to buy the liquidation goods at a bargain price that you can later sell for a profit. Luckily, there are a lot of opportunities to find other businesses that are looking to get rid of all the surplus and unload inventory for pennies. One of the rising names in Online Wholesale liquidation business is Quicklotz.com.
How does a Liquidation Sale Function?
Liquidation sales offer more than just the product or merchandise of the closing company. There may be things from huge machines to forklifts, to extra packaging while they conduct these sales. The sale lasts for several days, if not for at least a few weeks. When a large company is going bankrupt, they may ship the merchandise to a few centralized locations and conduct the sale from there. In the beginning, the prices will be low, but not very heavily discounted. However, as time goes on the discounts may even be up to 90 % off. Unfortunately, there may not be a lot of options to choose from and only a few bits and pieces might be left.
1. Finding good suppliers:
The most important thing that you have to do is to first lookout for online websites that will take you to liquidation brokers. An online search will yield tons of websites that will show you daily auctions of merchandise with big discounts. However, it is up to you to choose the right supplier and determine how successful your business will become. Do what it takes to ensure you secure the best deal. Send emails or make phone calls to the potential supplier. Conduct your research on them and see reviews written by others who have used their service or product. Choose a supplier you think is very reputable and do not just choose a random person.
Look for any complaints or any warning signs like bad history, not a good reputation, etc. Check references and look at who has done business with them before and what they think of them.
To summarize, just ensure you have covered all your sources and know them and their business practices well enough so that you don’t get scammed. Look everywhere and do not just settle with one website of one vendor. Look at other similar products and make sure you get the best deal for your money.
2. Deciding your type of merchandise
Think about what types of goods you want to buy and how much of it you want. Quantity is an important factor in the liquidation business as it will have a significant impact on your profit margin. However, it is also important to keep in mind that, just by having a lot of a product does not mean that it will yield greater profits. The product must sell and you should be able to sell out whatever you have bought. There may also be other costs that affect prices. You may need to shell out some money for shipping.
3. Knowing who you are buying from
Do not blindly make a deal with whoever is liquidating the merchandise. Make sure you know who that is. It could be someone as important as the government, an online retailer or even a big-box retailer. Knowing why the goods are being liquidated is important. Also, know if you are buying directly from the source of if you are dealing with a liquidation broker. In the best scenario, you will be working with a good liquidator who has a proven history of dealing efficiently and fairly with large quantity liquidation. Know whose merchandise they are selling and why you are entitled to know why. It will give you an impression of the type of company you are dealing with. A good rule to keep in mind is to buy as far up the supply chain as you possibly can. The value of the merchandise is affected by how many times it has changed hands.
4. What are you selling?
Now, is when you realize what you are selling and understand the product. Do the goods you are selling already have a market, how good is the quality of the product you have on hand, etc.? Determine the complete cost of your product so that you can plan your profit. You will need to make sure that the price of your product is in line with the type, quality and quantity of what you are selling. You can make some exciting offers and attract more and more customers. Quicklotz has one such product: – Amazon Mystery Box, it has a great demand in the USA. People can simply buy mystery box and get the best stuff at the cost of pennies. It is also important to note that certain consumables require an extra amount of care while handling and that will require extra fees. Do include those costs in the final price as well.
5. Buyer beware
Conduct in-depth market research before you commit to a certain selling price for your merchandise. Look at the competition and how much they charge. Also, ensure that you take a look at various liquidation warehouse websites to compare prices and ensure you are paying a competitive price. Buy low and sell high, that should be your vision when it comes to sales and purchases of any merchandise. Knowing your product, the pricing and the market is vital to the success of any online merchandise liquidation business.
Keeping these tips in mind, it is also important to consult a mentor or someone who has knowledge in these fields and markets before making big decisions so that they can prevent you from making big mistakes.