The tax deadline is fast approaching, but to some people tax time means refund time. A lot of people use the IRS as a savings account of sorts, cashing in every April with a large refund check due to overpayment throughout the previous year. While the thought of a large check might mean a much needed vacation, others will take the refund and start a long overdue business venture.
If coming up with a couple of thousand dollars is tough throughout the year, use any refund monies to finally get your eBay or Amazon business up and running. If you’ve done your homework in terms of the type of inventory to buy, you might want to take a second look at the liquidation industry.
The liquidation industry, referred to in the retail supply chain as the secondary market, offers the opportunity to buy big name brand products at a fraction of original retail cost. In the case of reselling on eBay or through Amazon FBA, big name brands sell much faster than unknown, non-branded items.
Let’s look at customer returned items. Big box retailers have a steady flow of retail consumer returned merchandise daily. This is merchandise that cannot be resold as new due to packing damages, item damages, wrong size purchased (but worn or used before return), or simply merchandise that was purchased on a whim or impulse, and now being returned for exchange or store credit. Returned goods represent a major problem for retailers who must reclaim as much lost revenue as possible from liberal customer return policies.
For most retailers, customer returned goods are either liquidated in house or through a contracted third party reverse logistic company. Once returns are offered for bulk sale, small and large resellers can gain access to a mixed variety of just about any kind of retail merchandise available, at costs that are as low as pennies on the original dollar.
This returned merchandise may need a bit of reconditioning before resale, but generally all loads of customer returned items will contain items that appear and function as new.
Because secondary market consumer returns can be purchased by anyone with the necessary capital, many entrepreneurs are cashing in by selling through eBay stores, the Amazon FBA program, Craigslist, as well as selling through flea market and garage sales.
If you’re one of the lucky ones receiving a refund check from Uncle Sam, maybe it’s time to order a pallet or two of liquidation merchandise and start earning a part or full-time income on the side!
Our 2020 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