[Solved] Buying from liquidation.com and reselling?

by SGTech
41 replies
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Hi all,

Anyone have any thoughts on buying from a site like liquidation.com and then reselling it through either Amazon, Ebay or your own ecommerce site?

I am guessing all the standard strategies would apply here. I have an idea for a certain type of store that insant your common, every day ecommerce store but I just wanted your thoughts on buying through a source like liquidation.com.

Thanks!

Scott.
#buying #ecommerce #liquidation #liquidationcom #reselling
  • Profile picture of the author thomasmps
    If your buying items thru liquidation.com depending on what it is I can move it thru my distribution channels...let me know if you have a interest
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    • Profile picture of the author stig
      Scott -

      I've been buying Amazon returns through liquidation and selling them on both eBay and Amazon for a couple years. You can easily get 2-3 times mark up on your purchase. The real kicker is if you setup an Amazon store, you can just plug in the ASIN to post the product for sale. Much faster than setting up eBay auctions.

      Now.. Liquidation.com. I bought from them when they first started. I got fantastic pricing on all kinds of Amazon returns, eg power tools, lawn and garden, kitchenwares, etc. I'd buy Toro, Hayward, DeWalt, Yakima, KitchenAid, Black and Decker, Makita, Hoover, Dyson, and more. Then suddenly about 18 months ago the companies selling through Liquidation.com pulled out and set up else where.

      Now 90% of what you find on Liquidation.com is Salvage grade, not suitable for resale without repairs or replacing parts. And even with that, the pricing is very competitive. You can check out the manifest for each auction to see the condition of the products.... mostly junk. And all the name brand stuff is gone.

      As for setting up a store, unless you are planning to sell bulk to resellers, don't bother. You can do FAR better selling direct on eBay and Amazon. I never had an item not sell for me on one of those sites. And if you do your research right, before you even buy products, you'll know what your profit will be and how long it will take to sell. It's just not worth trying to drive traffic to your own site when you have power houses like eBay and Amazon that will sell your inventory for you.
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  • Profile picture of the author NewParadigm
    Has anyone approached businesses to sell excess/obsolete inventory for them? Inventory their stuff for sale, list it, and have them drop ship the item for you?
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  • This can be done through these sites, but the principles of acquisition and resell are ALWAYS the same..

    1. You always have to understand the market worth of the item.
    2. You always have to understand the deductions of those items - every single one of them.
    3. You have to understand the estimated profitability of the item to your personal/set minimums and make all of your decisions based on data. If you take a 'stick your finger in the wind' approach, more often than not what 'looks good' or what was TOLD to you 'looked good' will turn out to be horrible.

    You need to 'trust, but verify' everything.

    And BEFORE YOU SELL ANYTHING.... You need to KNOW how much you are making on the sale.. Because markets are guessing games. They are predictable --- you just need to know how to predict them..
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    • Profile picture of the author stig
      Originally Posted by NewParadigm View Post

      Has anyone approached businesses to sell excess/obsolete inventory for them? Inventory their stuff for sale, list it, and have them drop ship the item for you?
      Most of the smart ones go with the established liquidators. There are a lot of them out there now and they make the process pretty easy.

      Originally Posted by Auctiondebteliminator View Post

      This can be done through these sites, but the principles of acquisition and resell are ALWAYS the same..

      1. You always have to understand the market worth of the item.
      2. You always have to understand the deductions of those items - every single one of them.
      3. You have to understand the estimated profitability of the item to your personal/set minimums and make all of your decisions based on data. If you take a 'stick your finger in the wind' approach, more often than not what 'looks good' or what was TOLD to you 'looked good' will turn out to be horrible.
      .
      It doesn't have to be that complicated. If you are buying liquidation items to sell on eBay or Amazon, just look at the history of previous auctions for the price and number of bids. If you see a product selling regularly at $50 with several bids, then you know purchasing an item at $25 will give you a nice return.

      I've sold tens of thousands of dollars worth of liquidation products on eBay and Amazon which were purchased through online bulk auctions. I can review eBay auction history on a pallet of 30-40 items in about 15 minutes and know what my bid limit should be for the pallet. Not only have I never failed to profit from an item using that technique, I can precisely dial in the profit I want.
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      • Originally Posted by stig View Post

        Most of the smart ones go with the established liquidators. There are a lot of them out there now and they make the process pretty easy.



        It doesn't have to be that complicated. If you are buying liquidation items to sell on eBay or Amazon, just look at the history of previous auctions for the price and number of bids. If you see a product selling regularly at $50 with several bids, then you know purchasing an item at $25 will give you a nice return.

        I've sold tens of thousands of dollars worth of liquidation products on eBay and Amazon which were purchased through online bulk auctions. I can review eBay auction history on a pallet of 30-40 items in about 15 minutes and know what my bid limit should be for the pallet. Not only have I never failed to profit from an item using that technique, I can precisely dial in the profit I want.
        This isn't complicated at all.

        But it is necessary. Especially when you're setting your personal minimums so you're not wasting your time on stuff that's just not worth it.

        Additionally, it helps with your negotiations.

        But complicated? No. It's about a 30 second process per item. And if you're in serious business with this, it is necessary for your accounting. Otherwise you're losing thousands in paying an accountant to do it. Goodbye bottom line!

        It seems taking 20 seconds once per thousands of sales on a multi-quantity listing would be more than worth it.
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        • Profile picture of the author malchiang
          You need to be very careful about the items and prices as ebay fluctuates alot
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  • Profile picture of the author gator1985
    Very interesting information about liquidation.com, I find that most of there products are not that good to make a decent profit, i find Ebay to be a pain because of there fees but amazon is amazing to sell products to, I personally sell bulk laptop sales on here making huge profits, look into the recycling electrics business huge profits guys, hope this helps.
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    • Profile picture of the author stig
      Originally Posted by gator1985 View Post

      Very interesting information about liquidation.com, I find that most of there products are not that good to make a decent profit, i find Ebay to be a pain because of there fees but amazon is amazing to sell products to, I personally sell bulk laptop sales on here making huge profits, look into the recycling electrics business huge profits guys, hope this helps.
      Agreed. Liquidation products sell very well on Amazon. Folks expect a premium service on Amazon and will pay a higher price than on eBay. But the items must be clean and in good shape otherwise customers are quick to criticize.

      eBay on the other hand is an extremely good research tool to gauge pricing and demand. It also has the benefit of giving you control of when the sale will occur. On Amazon you need to be more patient to get your price.
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    • Profile picture of the author stig
      Originally Posted by gator1985 View Post

      Very interesting information about liquidation.com, I find that most of there products are not that good to make a decent profit, i find Ebay to be a pain because of there fees but amazon is amazing to sell products to, I personally sell bulk laptop sales on here making huge profits, look into the recycling electrics business huge profits guys, hope this helps.
      If you don't mind me asking what kind of margins are you making on your lap tops through Amazon ? Are these refurbished, customer returns, or used items?

      I've been hesitant to venture into the electronics market. I often see pricing for flat panel TVs and computer products selling at liquidation auctions for 50%-70% of their original retail. That's for used or customer return items. Can you still make a profit at those prices? My comfort zone is buying at 20-30% of retail and reselling at 50-70%.
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  • Profile picture of the author Silas Hart
    If I could recommend a similar service, that would be viatrading.com - I browse liquidation.com every couple of months and never seem to find anything other than truckload sales of returned Walmart merchandise. One person I know that purchased such merchandise was very unimpressed by the goods he received. (Many large outdated TV's and damaged customer returns that were not able to be returned to the distributor or put back on shelves). I've been to ViaTradings actual auction location in California and you can get some good deals on pallets full of merchandise if you pay a fair price. I purchased a pallet once full of what seemed to be cheap action figures that you would probably find at a drug store. The rest of the pallet was full of McFarlane toys that I sold for $20-$50 a piece. I believe I paid $200 for the pallet and $200 for shipping.
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  • Items fluctuate on eBay only if you don't watch the market carefully.

    They fluctuate if you're looking at the 'A through D' students.

    They don't fluctuate if you're looking at just the 'A' students.

    If you tend to replicate the winning strategy, you replicate the winning result.

    If you tend to always sell according to the 'average strategy' you will only be a 'c' student.

    Markets don't fluctuate all that much.

    That's not to say they DON'T, because there are factors, but that is why you always take market snapshots and make decisions from there -- and those don't fluctuate.
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  • Profile picture of the author SGTech
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  • Profile picture of the author Prowebstakht
    Holy Geez, very informative stuff going on this thread. Thanks to all, especially to AuctiondebtEliminator. So it looks like that Ebay selling still works
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  • Thank you for the plug, Prowebstakht!

    Of course eBay still works.. It all depends on how you're approaching the eBay market and how you're calculating the profitability and competition.

    The people who DON'T know how to sell are NOT the people you replicate.

    It's what I've been teaching/implementing for years! But again, thanks for the plug!
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  • Profile picture of the author ThaVeteran
    Originally Posted by SGTech View Post

    Hi all,

    Anyone have any thoughts on buying from a site like liquidation.com and then reselling it through either Amazon, Ebay or your own ecommerce site?

    I am guessing all the standard strategies would apply here. I have an idea for a certain type of store that insant your common, every day ecommerce store but I just wanted your thoughts on buying through a source like liquidation.com.

    Thanks!

    Scott.
    Hello Scott, it appears you are getting great answers from guys n gals who are a lot further along than I am but in the spirit of giving back some knowledge that folks like Auction Debt Eliminator, Silas Hart and Alksense directly and most indirectly have given me I'll share this with you. As mentioned places like via trading are fantastic for what you are trying to accomplish but as with everything it's only if you do your math. I live about 20-30 minutes away from the via warehouse and went in and signed up three weeks ago...my mind was blown. The warehouse is HUGE! pallets with prices on them of everything you could possibly imagine. I have been selling onesie, twosies of things on EBAY (applying Auction Debt Eliminators rules) due to lack of funds to really bulk up on inventory. But if transactions get you excited as they do me-you will have a ball selling closeout, below wholesale priced items for a markup. You need to factor in shipping/fee's/cost to acquire and most importantly...what the market is buying your item for NOT what you want to sell it for. I learned this the hard way lol. But I'll tell you this: as a guy who has been a retail manager for over twenty years-skechers, walgreens, starbucks-hearing my phone make that little cash register sound in the middle of the night while I'm sitting on my couch because someone somewhere just purchased something I have online is the most exciting feeling in the world...good luck.
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  • Profile picture of the author domainscience
    They are cheap, but my wholesalers are cheaper.
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    • Profile picture of the author Importexport
      Originally Posted by domainscience View Post

      They are cheap, but my wholesalers are cheaper.
      And the factory in China will be cheaper than your wholesalers. Guess where the wholesalers buy from?

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  • Profile picture of the author HeadStartSEO
    Originally Posted by SGTech View Post

    Hi all,

    Anyone have any thoughts on buying from a site like liquidation.com and then reselling it through either Amazon, Ebay or your own ecommerce site?

    I am guessing all the standard strategies would apply here. I have an idea for a certain type of store that insant your common, every day ecommerce store but I just wanted your thoughts on buying through a source like liquidation.com.

    Thanks!

    Scott.
    I have done SEO in this space, liquidation is for the pros. They are people that have been in the game a long time. Liquidation or "closeout business" can be unreliable at times depending on stock of items.

    The whole aspect of this game is buying items that aren't extremely popular, and have some value (even if you don't see it). Then finding buyers. People that buy TV, Ipad cases, etc never make it too many people are doing the same.
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    • Profile picture of the author Importexport
      Originally Posted by HeadStartSEO View Post

      I have done SEO in this space, liquidation is for the pros. They are people that have been in the game a long time. Liquidation or "closeout business" can be unreliable at times depending on stock of items.

      The whole aspect of this game is buying items that aren't extremely popular, and have some value (even if you don't see it). Then finding buyers. People that buy TV, Ipad cases, etc never make it too many people are doing the same.
      You have made an important point. Too many people try to copy what other people are doing without sufficient research.

      If someone finds their own niche they can source anything other than brand name products direct from the manufacturer in China at huge profit margins that can eclipse what they would make buying and selling liquidated stock.

      A big benefit is that they can establish a permanent supply line, and it does not need big orders to do it.
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author timpears
    Most all what I have seen on liquidation.com is junk, or not priced at a price where I would be willing to jump in, based on it is liquidation merchandise. You are going to lose some of the inventory to begin with, then if you don't get it for a good enogh price, your expenses are goking to eat up any profits you may get.
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    Tim Pears

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  • Profile picture of the author btyiw
    What are the chances this is being posted up..

    I was actually looking into this recently too. I have a handful of friends a couple of months ago who followed this exact business model. They're purchasing products (anything related to home improvement) from some liquidation company and re-selling it on amazon/ebay. Surprisingly they've been doing very well on all fronts. They just rented out a huge storage facility and do weekly trips moving large box trucks of inventory.

    I wanted to start getting into this as well but don't know where to start, so I have the following questions:

    1) What are the best resources to find liquidation companies?

    2) Do you need some form of a re-seller license or certificate to do this?

    3) What niche of goods do you feel is always stable?
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  • Profile picture of the author ViralMediaBoost
    Just be careful its trusted but many scams happen on there.
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  • Profile picture of the author nubridges
    I used that strategy a few years back buying refurbished blu-ray players from liquidation.com and selling them on ebay, but that was when you could sell a blu-ray player for 300.00+ per unit. I would net anywhere from 80.00 to 150.00 per unit and was selling 1 to 3 a day depending on the supply. I also did really well selling low-end laptops on liquidation.com. The key was to bundle 2 or 3 together and make sure your auction ended on certain days of the week. It was one of the few times that selling on liquidation.com was more profitable than selling on Ebay. As long as one of the laptops was decent you could net between 200.00 to 300.00 avg per laptop, but the price point changed and I moved on to creating my own websites.
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  • Profile picture of the author domainscience
    I have never been able to purchase anything to a point that I simply gave up.
    The bottom line is that I will not touch anything unless the profit for me is enough.
    Otherwise, why waste my time.
    I will not say for sure that it is good or bad, but at the end, it was not worth my time.
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  • Profile picture of the author UnkwnUsr
    I have heard multiple horror stories from this website so whatever you do make sure you thoroughly research whoever it is that you're dealing with and make sure that what you're getting is worth it. Remember the items where liquidated for a reason if they could get full price or refurbish them then they probably would. Not saying you shouldn't use them just make sure you do your homework first.
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    • Profile picture of the author Importexport
      Originally Posted by UnkwnUsr View Post

      I have heard multiple horror stories from this website so whatever you do make sure you thoroughly research whoever it is that you're dealing with and make sure that what you're getting is worth it. Remember the items where liquidated for a reason if they could get full price or refurbish them then they probably would. Not saying you shouldn't use them just make sure you do your homework first.
      If Warriors are willing to outlay hundreds of dollars, sometimes thousands, on inventory that is by all accounts a lucky dip, perhaps they might consider a safer option.

      It is possible to establish a stable supply line of first quality products by buying small or large quantities direct from real manufacturers overseas. No guesswork. No nasty surprises. The process is easy, and if you choose items that are ex stock, you can have them delivered to your door within a few days.

      Many will think door to door air courier charges are too high, but I and my franchisees used air couriers or EMS (International Express Post) almost exclusively. After all costs including those courier charges, we were able to sell at a minimum of Cost X 250%.

      The secret? Buy direct from genuine manufacturers and know how to be sure you are getting the very best price. Our orders ranged from $100 per shipment to $50,000, with most around $500.

      One of my students posted on the forum about buying for a total cost of $2 and selling for $25. Until people get real quotes from genuine manufacturers they cannot imagine what profit margins are possible.

      By the way, check out the 141 adverse reports on Ripoff Report | ATI Search of Complaints & Reviews and see if you would prefer to buy direct from an overseas manufacturer.
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author Mikkel99
        How to do this
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      • Profile picture of the author Mikkel99
        Are these e book worth it ?
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  • Profile picture of the author GlobalTrader
    If you are interested in closeouts, liquidations, surplus merchandise then you may wish to check out the following resources - I am not affiliated with them but have been multi-year subscriber to the first and used to subscribe to and advertise in the 2nd -

    The Internet Marketing Association of Surplus Dealers TheIMASD.com is the main portal for the Internet Marketing Association of Surplus Dealers. Here you will find Surplus liquidation overstock closeout salvage imports and exports sources. - they publish a weekly email with direct contact info to many closeout sources.

    The second one used to be named "The Closeout News" but apparently have sold out or re-branded to "The Wholesale Merchandise" -

    The Wholesale Merchandise - National source of merchandise for retailers, wholesalers, importers, distributors and liquidators. - they have both a free online directory of dealers as well as online classifieds - they have a paper edition that you can get a sample of for $2 or $3 which I personally have not seen for over 5 years but when I used to advertise in it as "The Closeout News" it was well worth the couple of bucks to get up to date sources of surplus, liquidations and closeouts.
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  • Profile picture of the author belvedere312
    Years ago I purchased some clothes and they were a waist, junk as someone else said already. You can try liquidation products from Macy's, the stuff is much better there.
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  • Profile picture of the author NeedBucksNow
    I've thought about doing this but what would you do if you stuck with a bunch of stuff you couldn't sell? Also, think it is tougher to make money with Ebay fees, cheaper listings, & higher shipping fees. Amazon seems like a better way to go anymore.
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    • Profile picture of the author nvm001
      You've got to be creative with product damages. Multiple sales channels re: Craigslist, eBay, Amazon, Flea Markets, etc. Diversify, diversify

      Also, the horror stories we all hear about are in relation to customer returned items. There are millions of dollars of closeouts, shelf pulled, and overstock items that exhibit minimal to no damages whatsoever. This is what Amazon sellers are purchasing.

      Still risky, but there's risk in al business ventures
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  • Profile picture of the author scj1976
    Be very careful using liquidation.com not only are alot of their returns unsellable, their is a lot of fake and shrill bidding on their site, before you go bidding take that manifest and research the items and conditions of what it is on amazon, you will come to find most the stuff their is bid way past what u can get on resale, and that's before shipping costs and the money you loose back to amazon fees and whoever you use for your money transfers fees, there are alot better options out there ive been doing this for 7 years and they are my last option for inventory.
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  • Profile picture of the author orangescamper
    Maybe I just don't know what I am looking at but all I see is people paying like $600 for something they may make $50 on. Also the 3 times I bought from there everything was either broken when stated good condition or the items never matched what was listed.
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  • Profile picture of the author testlab
    It all depends! If you buy by big bulk than ok there can be a return, but as I have mentioned before to friends if you have the money to buy bulk out of LIQ than you should be buying from other places because to tell you the truth there is other avenuse out there that can make you real deal money not just pizza money You just have to research buddy!

    Good Luck
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    • Profile picture of the author Importexport
      Originally Posted by testlab View Post

      It all depends! If you buy by big bulk than ok there can be a return, but as I have mentioned before to friends if you have the money to buy bulk out of LIQ than you should be buying from other places because to tell you the truth there is other avenuse out there that can make you real deal money not just pizza money You just have to research buddy!

      Good Luck
      I know most people don't read more than the last two or three posts, so please see my post #35 in which I say much the same.

      Buying direct from genuine manufacturers overseas, even in small quantities, gives you profit margins much better than the Monopoly money profits (or pizza money) you can get by buying liquidated goods.
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      • Profile picture of the author copper00
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  • Profile picture of the author Mikkel99
    So what some good online liquidator?
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  • Profile picture of the author Truth B Known
    Beware selling on this site. I sold product on this site.
    When a month had gone by and I still had not received my payment, I contacted them.
    Sales rep. Zachary Patterson informed me that all my profit from the sale had be used
    to pay fees I was unaware of. In fact, Mr.Patterson claimed I owed them additional fees.
    Fees they never mentioned UNTIL I asked about my missing payment. And so their customer
    got my product, Liquidation.com got paid, and I got nothing. When asked, Mr.Patterson
    did not deny this was standard business practice
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  • Profile picture of the author seodeveloping
    I buy from them all the time, have never had a problem!
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