When thinking about starting a liquidation reselling business, you may be concerned with making money back on your investment. After all, you need to buy products to have products to sell, which can be intimidating if you aren’t entirely sure what you are doing. The good news is that plenty of people have successfully started businesses selling liquidated products from popular big-box retailers.
The products they are selling are items that have been liquidated through an auction house because they are customer returns that cannot be resold, or they are products that were cleared out. Either way, the big-box retailer no longer wants them, but they are new and sellable. This opens up opportunities for others to make money.
When you buy liquidated products, you most often buy them by the pallet. Here are some suggestions on the types of pallets you should buy.
1. Sealed Packages
Products that are still new in the box are going to sell faster, and for a higher price than packages that are opened because the customer will know if the box is sealed, the product is not damaged. Buying pallets full of sealed containers will ensure you are getting products that haven’t been damaged or used.
2. Tools
Tools always sell well. If they are power tools, you will need to make sure they work correctly, which means you should only buy power tools if you have the knowledge to test them or know someone who can test them for you. Hand tools you can usually tell by looking at them if there is anything wrong. Lowes liquidation pallets are often filled with tools and household building and repair supplies. Lowe’s pallets are generally filled with products you can sell quickly and easily. Whether you can sell to homeowners or workers, there is also a market for tools and home supplies.
3. Electronic accessories
Electronics sell well if you can guarantee they work perfectly. Doing quality control of products is time-consuming, and you need to know what you are doing and what you are looking at. Electronic accessories, however, sell fast and most often can be shipped as a bonus. Chargers, phone cases, cords, pop sockets, screen covers, and remotes are all examples of products you can sell quickly and easily. The downside to selling accessories is that they are small, and the selling price will be relatively low, so you’ll need to sell a lot to make a profit. The upside is that selling a lot shouldn’t be difficult.
4. Kids Toys
If you are prepping for the Christmas season, pallets of kids’ toys are going to be ideal because you will be able to move the products quickly. If the toys are smaller, you can post them on sites like eBay and ship them out, or you can post ads on Facebook Marketplace and sell them locally. Either way, you are going to be able to move a lot of toys during the holiday season. If you are shipping toys, you have to make sure they arrive when you say they will. If people are buying them as gifts and they arrive late, you will get bad reviews and miss out on repeat customers.
5. Items Small Enough to Ship
If you can ship the items, you will be able to sell on websites like eBay, opposed to having to rely on the Facebook marketplace or other local markets. Whether it is tools, toys, electronic accessories, jewelry, hair accessories, makeup, or anything else, buying products that you can ship will dramatically open up your target audience. To be successful, you will need to get a shipping scale, so you can accurately determine what shipping costs are going to be for each item. You also need to have a set shipping schedule to ensure that everything is shipped when the customer is expecting it.