Liquidation business is basically buying liquidation goods from big companies at a discounted price and then reselling those items at a better cost to earn profit. This business can be very lucrative if done right and can become the tool to your financial freedom. But starting out can be daunting as any kind of business is risky which is why you need to know a few things before deciding on the various aspects of your business.
Liquidation companies have flourished a lot over the years and some of the popular liquidation companies and wholesale suppliers are providing amazing services to various vendors. If you are looking to buy liquidation goods then you can check them out as they are one of the best in the business.
If you want to start your liquidation business in the US then I suggest you go through these five tips. They might give you some useful idea.
1. Start Small
Look, business is all about applying the right skills at the right place to squeeze out a good amount of profit. Such a skill is developed via lots of experience. So, if you are just starting out on your entrepreneurship endeavour then I suggest you start small. Invest only a small budget, by that I don’t mean insufficient budget. Just don’t go in wild. Keeping things small will give you enough motivation to take certain risks without being on the back foot.
Invest what you can without risking your or your family’s well being. Also, start with a small dealership. Don’t try to deal with large companies just now as there are other companies who have better resources and have been doing this for a long time.
2. Choose a Trusted Wholesaler
This is a sort of an extension of the last few sentences from the first tip. There are companies who have been in the game for quite some time and now have lots of capital and resources. They deal with bigger companies like Amazon, Walmart, eBay etc. So, since you are starting out it is better to bug your stock from these trusted sellers. Some of the online liquidation companies are quicklotz and bulq.
They have gained customer trust due to their consistent service and decent product quality. So, try to start buying your liquidation products from these companies and once you get really good and have enough capital you can proceed from their to deal with the giant companies.
3. Decide The Product You are Going To Deal In
This is an important part of starting a liquidation business. This has to be done in parallel with budgeting. You need to find a product that you are comfortable with selling or have a good idea about. Look, if you do business with trusted companies then you won’t get any bad product but still you should have a good knowledge about it so that you can judge the quality of it.
For example if you are interested in selling sports gear then you need to know about the qualities of these items so that you don’t end up selling unsatisfactory products. So, ask your self the question- Which product or products do you know about the most? Once you have your answer decide on the quantity and negotiate the price on various website.
4. Keep a Good Reputation With Your Suppliers
This is a very important tip since in this competitive line of business liquidation wholesalers have lots of customers. Also, there are many retailers who are always looking to buy products from suppliers. So, if your reputation isn’t that good then the suppliers might try to increase the price in your presence and make it harder for you to procure the items that you need.
So, do hassle and be street smart and let the suppliers want to do business with you.
5. Choose Your Shop
You can set up a physical brick and mortar shop or just sell your products on online market places. You can also choose to set up your own online portal as a sort of e-front for your store where customers can buy your goods online. If you do end up having a physical shop then try to correlate your products with the location.
You should ask yourself and others whether there is some potential if you set up your shonp I the said place. If your store location is good you can get a good customer influx. Also, if you decide to sell on Amazon or eBay be careful about your item descriptions. You don’t want complaints from people accusing you of selling used products. Amazon tends to cancel your Amazon Seller Account even if you produce your liquidation manifest.