Liquidators & Closeout Specialists
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Liquidation / Closeouts
One of the least expensive product sources you'll be able to find are closeout and liquidation items. This is because these are all items that a retailer or wholesaler no longer wants, and is simply trying to get rid of them as quickly as possible in order to make room for new inventory.
These types of products can include scratch & dents, discontinued items, floor displays or other items that were used for display purposes, and more.
It is slowly becoming more difficult to obtain quality items in this area because companies are starting to discover that eBay is a more profitable way to get rid of unwanted items.
Previously, if a retailer or wholesaler had unwanted inventory that they wanted to unload quickly, they would find a liquidator. That liquidator would negotiate a very low price to purchase the unwanted inventory. After purchasing the inventory, the liquidator would then try to find buyers through various venues.
Some savvy people picked up on this and became liquidators themselves. They would then turn around and sell the inventory on eBay. This brought about a new business.
New businesses are starting to pop up that specialize in selling unwanted inventory on eBay. So, rather than selling their inventory to a liquidator, companies looking to liquidate inventory make an agreement with an eBay seller to sell off their unwanted inventory on eBay.
This is very similar to an eBay consignment business, but they specialize in working with large amounts of inventory and larger companies (whereas most consignment sellers specialize in working with individuals who have very little product to sell).
Nonetheless, there are still some great deals to be had in this area. The key is to just be careful when it comes to selecting the type of product you choose to buy.
A very popular category that new sellers often want to jump into is consumer electronics. They think that because electronics sell so well, that's what they should sell.
Well, they are right about one thing: electronics do sell very well. So well in fact that it is one of the hottest categories on eBay as far as gross merchandise sales.
However, it is also a category in which supply far exceeds demand, making the competition extremely tough. You'll find that selling electronics on eBay will result in very stiff competition (resulting in low profits) as well as a very low conversion rate (ie: your percentage of successful auctions will drop dramatically).
Additionally, you will discover that purchasing electronics through a liquidator will result in a lot of broken electronics! That is most often the reason a retailer sells their electronics inventory to a liquidator.
Originally I planned on offering, as a free bonus with this eBook, a directory of liquidators and closeout wholesalers. Then I realized that a big problem with static directories is that they tend to get outdated.
So I thought, "Why not just teach people how to find wholesalers on their own?" So that's exactly what I do starting on the next page.
eBay Drop Shippers
Garage and Yard Sales
Liquidation / Closeouts
How to Find Wholesale Suppliers
Finding Manufacturers in China and Other Asian Wholesale Suppliers
Selling eBooks and Other Digital Media
Chapter 7 Summary & Takeaways
Jump to another chapter:
Chapter 1: Driving Traffic to Your Auction Listing
Chapter 2: Listing for Higher Profits
Chapter 3: Does Any of this Stuff Work?
Chapter 4: eBay Stores
Chapter 5: Auction Management
Chapter 6: What to Sell on eBay
Chapter 7: Finding Products to Sell on eBay
Chapter 8: Mining eBay's Traffic
Chapter 9: HTML Tutorial
Chapter 10: Acting Like a PowerSeller
Chapter 11: Final Words
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