You might be wondering about the advertisement that pop up on your screens that promise to sell electronic gadgets and branded clothe at really cheap prices; question is are these products genuine, are they really from big brands or second copy products. Here is how the wholesale liquidation lots spell the magic!
The economy of the United States was founded on the principle of entrepreneurship. Millions of people started their businesses and achieved the Great American Dream with entrepreneurship as their bedrock. Cities like New York and San Francisco have become global hubs thanks to the innovative business ideas that thrive in these places.
Thanks to the internet, starting a business online and earning money from home is now a piece of cake. Gone are the days when you’d need to rent a storefront, get initial investment, build a network with suppliers, and worry about marketing in order to attract high customer footfalls.
Now, merely with a good internet connection and by using marketplace platforms like eBay, you can start a store from the comfort of your basement. In this article, we’re gonna discuss how wholesale liquidation auctions can help you make money from home while running a successful business.
The main question remains: What do you sell? Often, in order to make a profit in a business, you need one of two things: (a) an innovative product that no one else sells or (b) an attractive price point which is lower than your competitors.
Point (b) is where wholesale liquidation companies can make a massive difference in your life and help you earn large profits.
Before we go into details, let us start with the basics:
What is wholesale liquidation?
Large retailers such as Walmart and Target tend to order goods in bulk. Often, many of these items go unsold. Moreover, it is estimated that about 10% of sales come back to the company as customer returns. Now, customers don’t always return items because they’re defective. Often, returns happen because either the product doesn’t meet the need of the customer or because the customer changes their mind.
What happens when you return a product to Amazon or Walmart: Now, customer returns cannot be stocked up back on the shelf, and therefore, they end up in the retailer’s warehouse. Similarly, excess inventory occupies far too much real estate in the warehouse without making any money for the retailer. Moreover, there’s a lot of cash locked up in these items which the retailer wants to free up.
What are wholesale lots: Wholesale liquidation companies purchase these goods from large retailers in bulk. Most of the excess inventory and return goods are packaged into “lots” by retailer segregated by category. Therefore, there’ll be a “baby products lot”, “electronic gadgets lot”, “home improvement items lot” etc.
These lots are picked up by wholesale liquidation companies and websites in bulk for a fraction of the original price. It helps the retailers because they’re able to get rid of excess inventory and still manage to make some money. Similarly, wholesale liquidation companies too can sell these products and are able to pass on these massive discounts to their customers.
This is where you come into the picture.
How to earn money from customer returns using wholesale liquidation?
Wholesale liquidation companies have a diverse range of goods and sell these by the lots. Therefore, for example, a “lot” of brand-new electronic gadgets that costs $8000 in the market will be sold by these companies for as little as $2000. This news is absolute music to the ears of an independent business owner like you.
Starting a Liquidation Business: First of all, start by opening up a seller’s page on eBay. This shouldn’t take you more than a few minutes and once your page is set up, you’re ready to start making the big bucks.
Visit the website of a wholesale liquidation company like Quicklotz or Viatrading. Here, you’ll see lots, pallets, and even truckloads of discounted goods classified by category.
Now, you need to decide what kind of products you wish to sell. You can keep your range as wide as possible. However, for starters, we would advice you to stick to a category that you’re familiar with.
Lets say you chose electronic gadgets.
Now, browse through the catalog of electronic goods on the websites of these wholesale liquidation companies. Most of the time, the item description will give you details about what the lot contains. Lets assume you find a lot or pallet that contains smart watches, GPS devices, and fitness bands.
At the bottom, you’ll see the original price of the goods and the price at which the wholesale liquidation company is selling them. Often, the discount can be as high as 75-80%.
Purchase a lot or wholesale liquidation pallets of your choice and ask for it to be delivered to your home. Most wholesale trading companies offer fixed-price shipping to anywhere within the United States.
Now that you’ve received your goods, you’re ready to start selling. Here’s a few reasons why wholesale liquidation can help you make great profits:
- A large number of goods in your wholesale liquidation lot come with their original packaging and tags. Now, lets assume your wholesale liquidation lot contains a brand-new smartwatch with its original tags which sells in the market for $150. Even if you sell this watch on your eBay page for $100, you’ve still made an absolute killing. That’s because your selling price is almost 5x the price that you paid for buying this watch as a part of the wholesale liquidation lot.
- Thanks to wholesale liquidation companies, you’re assured of a steady stream of original and high-quality goods. Every time a new product or model launches in the market, retailers like Walmart or Amazon tend to get rid of the older stock. These brand-new goods end up with wholesale liquidation companies and are yours to buy for a fraction of the cost. As a result, your business will never ever feel a shortage of goods or inventory.
- You’re running a successful online business selling goods without having to deal with multiple suppliers.Thanks to online liquidation companies, purchasing your stock is as easy as online shopping. Therefore, ordering fresh goods is a piece of cake as you get dedicated customer service and swift shipping from these online liquidation firms.
Now that you’ve read this, you’re all set to start making some serious money from home. Share this article with your friends and tell them how simple and easy it is to start a profitable online business using wholesale liquidation.
Also read: Guide for Buying the Best Gamer Headsets