Selling wholesale liquidation goods can be a supremely lucrative business. For starters, compared to an average online seller or retailer, your profit margins can be much higher. Moreover, the goods you sell tend to be high-quality original items so you can find a great market out there of consumers who will flock to your store.
Let us first understand how wholesale liquidation works:
Great goods for cheap
Wholesale liquidation companies purchase overstock items and consumer returns from large retailers like Walmart and Amazon.
The retailers sell these items at a heavy discount because this allows them to cut their losses and free up space for newer inventory.
The wholesale liquidation company strikes a deal with these retailers where it procures these products for heavy discounts and then re-sells them to consumers.
Now it is important to understand that these overstock or return goods are high-quality items with their original tags and packaging.
Therefore, when you purchase from a wholesale liquidation company, you get awesome goods at a heavy discount compared to what wholesalers sell them for.
This principle is the basic key to running a successful and profitable wholesale liquidation business.
Now that you’re ready to start your wholesale liquidation business,
These are the key things to keep in mind:
Purchase by the pallet or truckload
It is a common rule of selling that higher the volumes you purchase, the deeper will be your discount. Purchasing wholesale liquidation goods by the pallet or truckload helps you achieve exactly that.
When you purchase your stock in bulk from wholesale liquidation companies, the cumulative discount on each product in that pallet or truckload adds up to a handsome profit.
Moreover, purchasing in bulk also helps you get a wide variety and assortment of goods which allows you to improve and diversify your business offerings. For instance, no one wants to go to a store that sells only white t-shirts.
However, when you purchase an entire pallet or truckload of apparel, you get a wide variety of clothing for which there will be tons of customers out there in the world.
Therefore, the golden rule is to always purchase your stock in bulk. While you might not recover your entire investment immediately, it will help you build solid profit margins in the mid to long-run.
Purchase from the right wholesale liquidator
In the last few years, there has been a boom in the number of wholesale liquidation companies in the United States.
While there are some new players in the business, companies like Quicklotz have been in this business for a long time and are better suited towards understanding the needs of their consumers and the market.
Therefore, it is quite important to choose a wholesale liquidation supplier that works best for you. There are several factors that come into play while deciding this. The most important ones to look at are:
- whether the wholesale liquidator sells the type of goods that suit your requirements
- whether the discounts offered by the wholesale liquidator are good enough for you
- whether the wholesale liquidator offers services like end-to-end customer support and nationwide shipping.
Choosing a good wholesale liquidation company to purchase your goods from is, therefore, one of the most important factors in building a successful business.
Check what you buy
Most major wholesale retailers will give you a goods manifest that details the products contained in pallet or a truckload.
It is, therefore, very important to read through this carefully so that you don’t end up purchasing goods that you aren’t able to sell.
Similarly, major wholesale liquidation companies like Quicklotz will offer you a dedicated end-to-end customer support throughout the entire purchase process.
During this process, you get a chance to understand what you’re purchasing and this allows you to pick up pallets and truckloads that contain just the right mix of goods for your business.
It is, also, very important to avoid lesser-known wholesale liquidation companies especially if they haven’t been recommended to you.
The last thing you want is to end up with damaged or defective goods that you aren’t able to sell further.
Therefore, it is always better to stick to a tried-and-tested wholesale retailer who understands the business and who will provide a great bargain to you.
Diversify your offerings
A great business is one where the customer can get everything they need under one roof. Therefore, instead of investing all your money into purchasing a similar type of goods, it's always more advisable to diversify.
If you do this, you will be able to provide your customers with a wider range and choice.
Therefore, if you’re a person with a clothing business, ensure that you stock an adequate amount of men’s, women’s, children’s etc. clothing so that your customers can shop around.
This will also ensure that your customer base remains captive and that they will never need to go to another store (basically, to your competitors) for their requirements.
As discussed earlier, purchasing your inventory by the pallet or truckload helps you achieve a great diversity of goods. That's because a single pallet or truckload can contain a wide range of products sorted by category.
Therefore, in a single pallet, you will find numerous items which all appeal to a wider range of your customer base.
Understand your competition
In any business, it is important to understand your competition and tweak your business accordingly.
First of all, the main factor is pricing. Since you’re purchasing your inventory at a deep discount from wholesale liquidators, you enjoy a great degree of flexibility with your pricing.
Find out what your competitors are selling similar products for when you decide to fix your own pricing. Often, even a negligible price difference will be sufficient for stealing customers from your competition.
Remember that every customer loves a great deal or bargain. If you can make them feel that your pricing is the most competitive or that your range of goods is the most diverse, you’ll be able to grow your business very soon.
Making top dollar
Following some of these basic tips will help you build a successful selling business within a short period of time. The key to a successful business is patience.
Therefore, do not get worried if you aren’t able to recoup your entire investment in just 1 sale: because that rarely happens.
Once you find the right wholesale liquidation company, half of your job is pretty much done.
The rest of it is basically the basics: understand your consumer, know what they want from you, and provide them exactly that.
And, of course, it always helps to go the extra mile because a happy customer is also a repeat customer.