Starting an e-commerce website or eBay business is a dream for many people who desire the financial freedom a small business can provide. The biggest question and "stumbling" block entrepreneurs have is simply...what merchandise will I sell and where will I get it?
In order to make a profit in a retail business, you must have a wholesale or below wholesale inventory source. Without inventory to sell...you have no business! In addition to having an inventory to resell, you must be able to purchase this merchandise well below retail in order to generate a profit.
There are thousands of eBay Power Sellers, website owners, and even traditional "brick-and-mortar store owners who are finding out they can purchase closeout and liquidation merchandise to resell. The difference between wholesale and wholesale closeout merchandise is simply pricing to the reseller. Closeouts are priced at a fraction of original wholesale, therefore allowing the reseller to increase inventory margins substantially. Closeout merchandise allows you, the reseller, the ability to compete with other eBay sellers, and
The phrase wholesale closeout merchandise encompasses many different categories of below wholesale merchandise including customer returns, salvage items, liquidations, shelf pulls, excess, overstock merchandise and vendor canceled orders.
I want to caution those who are thinking of buying customer-returned merchandise for the first time, as there are inherent risks involved! Anyone can buy liquidation pallets of customer returns in any retail merchandise category including clothing, jewelry, electronics, furniture, general merchandise, etc., but you should fully understand what to expect before you make a large purchase.
Consumers bring the merchandise back to a store for a refund for two distinct reasons
Damaged merchandise - Item(s) in some way are damaged or missing pieces. The items could be defective in operation; clothing often will be stained or ripped and may have broken zippers and/or missing buttons.
Impulse purchasing - An item looked great in the store and maybe the consumer got caught up in the bright lights and excitement shopping brings, but once home a decision is made to return an item. Maybe this retail shopper realized they really should not have spent the money in the first place -Bingo...a perfectly good item is returned to the store!
In my many years of buying retail returns for my business, I will tell you that there is a higher ratio of damaged merchandise versus undamaged. You should expect to receive merchandise that needs a little work before you can resell it. Some merchandise found in customer returned pallets will need to be thrown away...ouch!
Wholesale Electronics Liquidation Sources Online
There are so many wholesale electronics liquidation sources online, but finding a reputable source is easier said than done. Many resellers and merchants are looking to find closeouts, surplus, and overstock goods such as furniture, office supplies, clothing, and electronics.
When bidding in an auction, make sure you check the conditions of these lots. Bidding on wholesale items can have various purposes for different merchants online. We're all here to buy low and sell high in this industry, there are different ways to sell the same item in an auction lot.
Many liquidators offer pallet and truckload auction lots for electronics that are in non-working use, etc. Resellers will buy these lots for working parts to repair other broken units. In my opinion, this method of would be more profitable because bidding on dead scrap lots is a lot cheaper. Dead scraps? Yup, some people love buying and only buy broken units.
Breaking down dead scraps units for parts can be a lucrative business. Often times when you factor in the prices of each individual part you offer to sell, it equates to more than just selling the unit as a whole. Let's say you bought a whole pallet of a certain video game console for parts, etc. Here's what you need to do:
Remove all the parts from the unit that can be individually sold to repair another broken unit. Make sure you organize the separated parts together in a little container or bin to be able to find them later when someone purchases them.