Buying Liquidation, Surplus and Closeout Merchandise To Sell on Amazon
Many people buy overstocked or closeout merchandise for resale. You can earn large profits if you buy carefully. Basically, you want to buy only desirable merchandise. Some times merchandise shows up with closeout dealers because it wouldn’t sell in a store. These items should be avoided. Look for merchandise that didn’t sell for economic reasons — not because the merchandise was poor. Some examples:
- Seasonal goods
- Store closing or bankruptcy
- Obsolete goods replaced by newer products
- Customer returns after the holidays (not warranty or defect returns)
One of the best places to find great deals on merchandise is through what are called “closeout” dealers. Another name for these outfits is Liquidators.
Most wholesale merchandise comes brand new from wholesalers. However, closeout merchants may deal both in brand new merchandise such as those pieces gotten from overstocks. Additionally, vendors of closeout merchandise sometimes deal in returns and used goods.
Closeout Merchandise: Advantages
There are two primary advantages to buying closeout merchandise. First, closeout merchandise is inexpensive. Closeout merchandise has the advantages that you can generally obtain product for cheaper than if you went through a non-closeout vendor. Generally, the merchandise tends to be high quality, but the price is cut or marked way down for clearance.
You can usually sell these items on Amazon or at flea-markets, wherein the regular Amazon or flea-market buyer expects great deals, yet does not need or require the same vendors to sell the same sorts goods month after month. Therefore, closeout merchandise frequently makes its way to Amazon, where everyone wins.
Closeout Merchandise: Disadvantages
There are two basic drawbacks in buying closeout merchandise. The drawbacks of buying closeout merchandise include limited stock and the possibility of receiving low quality merchandise.
First, when you buy closeout items, many times there is limited availability of a particular type or line of merchandise. You usually cannot make a stable inventory out of buying closeout merchandise since the product availability fluctuates.
Most importantly, a buyer of closeout wares needs to be on guard about the possibility of buying merchandise that is irregular, damaged or somehow has low resale value. This can occur especially, but not necessarily, with goods that have been returned.
You can circumvent these problems by dealing only with reputable closeout dealers. How to find them will be discussed in the next section.
Lastly, if possible, it may be worth your time to drive to inspect the merchandise; and thus geographical locale may be an important deciding factor when you are looking to buy closeout merchandise.
Product from Reputable Dealers: How to Know
You want your first experience buying closeout merchandise to be positive. How do you know what to buy and from whom?
Let’s say you are new to the reselling game. You are not even sure about what sells or if you can make a profit. One of the best places to obtain price information for what sells on Amazon, and at what price, is a research product called HammerTap 3. Of all the research tools on the market this one is simply the best. You can get a 1-month trial for $1.00.
A good place to find closeout and liquidation products is at our wholesale search engine.
An excellent source for liquidation and surplus goods is Liquidation.com. This is a wholesale-lot auction site with incredible values. Some examples are micro screen electric razors currently going for $276 for a case of 48, BabyG watches for $3.00 each, Labtec computer headsets currently at $0.21 each and a mixed lot of Tommy, Ralph Lauren, Liz and Nautica clothing currently bid at less than a dollar each. (Note: These items change daily so the items I note above will not be available now, but there will be plenty of similar items).