The working world has changed dramatically over recent years. More and more people are looking for ways to either supplement their current income or replace their income by working independently or from their homes. Unemployment has reached a staggering rate, and the prospects for many small businesses are not looking positive. While starting a side hustle or home business may be intimidating, thousands of people have found success in starting a home business. You may think now is not a good time, but there is never a good time facing fear. The key is to do your research and then take the leap.
There are countless things you can do as a side hustle or home business. For many, choosing a home business starts with something they are passionate about or a talent they want to share with the world. For others, it is about practicality and utilizing the business skills they gained working in the field for years. One home business idea that has grown in popularity as more and more people have found success is reselling liquidation products. Here is an overview of how to start a side business selling liquidation pallets.
What does a liquidation business look like?
A liquidation business is when you buy large lots of products that are being liquidated from large retailers. For example, Amazon, Walmart, Target, and Lowes take all the products that have been returned or discontinued and sell them to a reseller business that resell them to individuals or small retailers.
The liquidation business is a win-win for all those involved. The big-box stores can unload products they can’t sell in their stores without losing money on them. The liquidation companies make a profit, and individuals can start a liquidation resale business from home. You can also get liquidation products from suppliers when companies or brands go out of business.
While some people may choose to open a small retail store to sell their liquidated products, that involves overhead that many are not prepared to spend. Additionally, running a retail location also means leaving your current employment to focus on the resale business full-time, which you may not be prepared to do. Most people start their resale business online, utilizing websites like eBay and Facebook Marketplace to sell their products.
How do you get started?
To get started, the first thing you need to do is get organized. You will need a place to sort, inventory, and store your products. You will also need a work area that will allow you to stage your products to take photos, work on your computer to upload and manage your ads. If you are focusing only on products you can ship, you will need to get a postage scale and system in place. If you are focusing on local sales, you will need reliable transportation.
Once you have your work and storage areas set up, you will need to choose an auction company to buy your products through. There are several great options as this industry has grown, so find local to your area. Being local will allow you to pick up your purchases and save money on delivery. You may choose specialized products at a deep discount or focus on general merchandise and offer your customers an online product catalog. Choose a company name that will reflect you and the fact you work with wholesale liquidation.
What will your workday look like?
Your workday will consist of keeping your inventory updated by recording all sales from the day before, taking those items off your inventory list, and adding any items you’ve recently purchased. When you purchase many products, you will need to go through the entire lot, inspecting each product. The products you can resell will be added to your inventory and stored appropriately. The items you are unable to sell, you will put in a separate area. Unsellable items can be discarded, recycled, or donated depending on what they are and their condition.
You will then work on uploading sales ads. This will consist of taking several photos of each product and writing detailed descriptions of the products. If a product is sellable but has a flaw, it is vital to describe the flaw in detail and provide photos of the flaw, so the buyer is fully aware of what they are purchasing. After posting new ads, you will need to check the ads you already have posted to respond to comments or questions.
Finally, you will need to arrange delivery with the buyer or prepare the item to be shipped when you sell an item. Save any trips to the post office for the end of the day, so you do not end up making multiple trips. Depending on your volume, you can also arrange for a postal pick up at your house to save you time and money.
How to choose the types of products that you will sell?
When you get started in the liquidation business, you want to choose products that you are either already familiar with or passionate about to make selling easier. For example, if you are a tech-minded person, you may be interested in many wholesale USB drives. You can tailor your ads and selling strategies to your niche and other tech products like phone accessories and computer or gaming equipment. USB drives can be marketed to individuals or businesses as their appeal and function are widespread. While USB drives are available virtually everywhere, offering the best price on large quantities will make you competitive in a crowded market with similar products.
If you are passionate about cars, you can seek out liquidation pallets of car parts and accessories. If you are a crafter, you can wholesale craft supplies and equipment. Being passionate about something will make it easier for you to learn about the products. It will also help you stay passionate about your business. When it comes to sales, selling a product you really love or believe in makes the sales process even easier because you can confidently speak about them.
Learn about your products
Once you choose a product genre, you need to learn everything you can about your selling products. The more you know about your products, the better your ads will be written, the more detailed your descriptions will be, and the more prepared you will be to answer customer questions about the products you are selling. For example, if you are selling women’s skirts and dress, blouses, shoes, and other clothing items, it is important to not only know your products but know your customer. Knowing your customer will allow you to know what kinds of features and products they are looking for moving forward.
Instead of just providing sizes, you can provide inches since women’s sizes are subjective. You can talk about fabrics, fits, and styles. You can provide ideas on how to mix and match the items you have for sale. You’ll also have a better grip on the retail prices of the items you are selling, so you can offer them at a great discount while still making money. When you buy liquidation pallets from an amazon warehouse, you may get clothes from different brands and styles. The more you know about fashion, the more prepared you will be to sell.