When people hear the term “liquidation” most will associate that with going-out-of-business sales. Although liquidation of inventory could signify the end of operations, it could also be part of a larger company’s reverse logistics plan. And for start-up retailers, discount store owners, flea market vendors, and online resellers, liquidation provides a great opportunity to turn a profit. Because when a business chooses to liquidate its inventory, it’s typically sold at a deep discount, and buyers can purchase these goods for pennies on the dollar.
Below you’ll find everything you need to know about how to buy liquidation pallets and helpful tips for turning a profit.
The process of buying liquidation pallets is relatively simple. In most cases, buyers can easily search for reputable liquidation marketplaces or online auction sites, like B-Stock. Most online liquidation marketplaces require you to register to become an authorized buyer. With your resale certificate in hand, you just need to apply to specific marketplaces you’re interested in—like Walmart. You’ll want to register on the right liquidation marketplaces to fit your budget, fill your inventory needs, and turn a profit.
Making money selling Amazon liquidation pallets, Target pallets, or liquidation inventory from other retailers can be easy if done right. To help new resellers succeed, we’ve compiled tips to help make this process easier to understand.
1) First, identify the product(s) you hope to sell. Once you determine what category you would like to be in, begin your market research. You should think about:
2) Following your research, you should search for sourcing options. If you’re looking to resell goods as a full-time business opportunity, liquidation pallets are the best way to acquire quality brand-name goods for a great price. However, we recommend choosing a reputable liquidation website that allows you to source directly from the retailer.
3) Once you’ve found a reputable site to purchase inventory from, you need a resale certificate. That resale certificate makes it possible to purchase and resell merchandise as an authorized reseller. This certificate is necessary for reselling on sites like Amazon which has a brand registry. A brand registry is for those companies that wish to have products sold only by authorized sellers. Next, you should also register for a seller’s account on the resell site you’ve chosen. Amazon is the most popular seller’s site, but it certainly isn’t the only one. When conducting your market search, hopefully, you’ve nailed down which site would be best suited for you.
4) List your items with appropriate and competitive pricing. The best price is either at or just below market value. No matter what price you set, you must factor in shipping, taxes, and selling fees. If you’re selling on Amazon, consider shipping goods to an Amazon warehouse where they handle shipping for you. You may also decide to resell the merchandise at a flea market, thrift store, or via your own brick-and-mortar business.
Purchasing liquidation pallets and finalizing your online listings are great first steps, but it’s just the beginning. If your goal is to generate long term business and profits, you’ll need to understand the steps for selling liquidation pallets. Our tips for successfully selling your liquidation inventory can be found below:
1) Set a budget if you’re reselling on an auction site. Remember, you’ll need to have enough money to cover sellers’ fees, shipping, and acquisition. The same goes for the acquisition of inventory. You should always have a budget for what you’re willing to spend when purchasing to replenish your inventory.
2) Make sure you know who you’re buying from. In the end, amateur resellers can’t afford to work with a supplier that will consistently sell damaged goods or not have a steady supply of inventory.
3) Consider additional costs, like shipping or extra fees, that may be imposed by the retailer upon purchase.
4) Do your homework! Check out the price of the product or similar products on the retail market from other sellers. Doing this research will help to ensure you’re getting the best price in order to turn a profit.
To start your own reselling business, even if it’s just a side income, is relatively easy to set up—and B-Stock makes it even easier. We work with dozens of well-known retailers (including nine of the top 10), who sell their inventory on dozens of our liquidation marketplaces. B-Stock is the largest online marketplace in the world, supplying buyers with valuable products and trusted service.
Learn more about buying liquidated inventory, at B-Stock.