Yesterday I received an email from someone looking to create a 2nd income for his family by purchasing liquidation pallets of merchandise. Not all of my advice will be filled with smiley faces and jokes, as in this case. Read on:
Robert, I just came across your website, and I’ve read almost all the articles. Thank you for the information, it is much appreciated. Like most people I’m trying to escape the rat race, and obtain freedom for me and my family. I just bought a few lots of cell phone accessories from liquidation.com to test the waters on eBay and amazon. Do you have contact information for any liquidators who offer cell phone accessories, such as brands like Otterbox? I figured I will start with cell phones despite the rough competition out there. Later, and hopefully with the help of your guide, I will move onto bigger and better things. I did some selling on eBay for a few years so the learning curve will not be too difficult Thank you again, and I hope to hear from you soon. Marcos
Hello Marcos, thanks for the kind words and info about your desire to start reselling liquidation merchandise. The cell phone accessory liquidation market is an area that I’ve never ventured into simply because cell phone styles and sizes change shortly after most people make a phone purchase. Technology is frustrating in that respect. Because of this very fact, there is a ton of outdated cell phone cases, chargers, and other cell-related accessories within the liquidation market. This is good and bad because on one hand we can tend to find stock at a relatively low price, but typically it’s because no one is buying such products due to the ever changing market. It’s a true catch twenty-two for resellers like you and I. So, when we do find a great deal on cell phone cases at .15 each, does it really matter because if we cannot resell them…how much are they really worth?
You mention Otterbox, which happens to be a very high-end brand. Like any other high-end manufacturer, Otterbox exhibits extreme caution with their product so as to not allow their stock out into the secondary resell market. Why is this? Well, let’s stop and think about it for a moment. How much do you really think it costs to make an Otterbox case? I would venture to say it’s approximately a dollar or less. How then can they justify a $39.99 retail price point? It’s called brand protection and perceived value. They are not allowing any type of customer returns back out into the market. Now that’s not to say there is no excess floating around, but it is few and far between.
Marcos…I would strongly recommend purchasing liquidation merchandise that is not closely protected by manufacturers’ strict distribution procedures. Trust me, in the long run, the success of your business will depend on how often and easily you can replenish inventory. I do not think cell phone accessories are the way to go.
Does anyone else have any suggestions or comments for Marcos?
Our 2015 Liquidators Guide chronicles 12 years of wholesale product sourcing experience and includes my personal black book of direct source contacts! As an industry expert, I'll share the success I've enjoyed along with the mistakes I've made buying and reselling liquidation merchandise.
If you are thinking about buying pallets of liquidation merchandise from a liquidator, broker, or direct from department stores, you need to check out The Liquidators Guide. In addition to our guide, you'll also get FREE access to our exclusive liquidation sourcing website filled with product sourcing audio and video content!