There are tons of people looking for ways to make money from home online. An easy way to do this is by reselling liquidation inventory! Merchandise is constantly being liquidated from big-name retailers looking to offload excess or customer returned inventory. Many shopper-savvy people are starting their own business buying and reselling this inventory in the secondary market.
With public health concerns over COVID-19, working from home is becoming a more and more attractive solution. Yes, there are other things you can do to make money from home online, like transcribing services, product reviewing, or even teaching. But a quick and scalable business can save you from having to work gig to gig. Becoming a reseller is easy to jump into if you do your research. It’s likely you’re already browsing online anyway, so why not make money from home in the process!
What is reselling? Reselling is based on the principles of retail arbitrage. Which is essentially purchasing products from a retailer at a lower price and reselling them for profit. People start entire businesses based on this concept because there is always consumer demand and it has the potential to earn you quite the profit.
So the process of reselling involves buying merchandise and reselling it in places like online marketplaces or brick & mortar discount stores. Online resellers, for example, will often buy merchandise in bulk quantities and then resell single items – for a profit – on commerce sites like eBay or Poshmark.
Categories that good for reselling:
Apparel Toys Electronics Appliances How to Become a Reseller Becoming a reseller is actually quite simple and anyone can do it! Whether you are looking for some extra cash to supplement your income, or want to turn this into a full-time gig, you’ll follow the same steps.
Register your business Better to do this early on to avoid any mess or headache come tax season. You’ll need documentation to support your reselling efforts and be a legit busines..
If you’ve been in consumer electronics sales for any length of time, you’re familiar with the problem. The latest version of a product is released, and suddenly you’re stuck with shelves full of obsolete electronics inventory. Sure, some might sell if you put it in a clearance bin, but the rest will just clog up your warehouses until you do something about it.
Some brands in the past have elected to dump this inventory and cut their losses. This so-called solution equals electronics tossed into landfills, a practice that can be incredibly damaging to our environment. Green-conscious brands and consumers alike know that this is no way to solve the problem. So what’s a brand to do?
Believe it or not, there is money to be made selling these outdated products into the secondary market. True, they usually won’t fetch the same price they did before the newer version dropped in most cases. But you can still recap some of your investment while freeing up inventory space for the latest and the greatest.
Electronics Liquidations If your outdated goods are only a generation or two behind, they likely still have some consumer value. But that doesn’t mean you want to clutter up your warehouse or stock your shelves with them. After all, they won’t command the same price as newer inventory.
Fortunately, online auctions offer a lucrative and straightforward solution for moving these obsolete or used electronics out of your warehouse and into the hands of resellers who deal in the secondary market. By listing your unwanted inventory on a trusted site like B-Stock, you can unload pallets or even truckloads of obsolete and used inventory quickly, and rest assured that you’re getting the best price the secondary market will currently support.
Carefully vetted resellers will bid on your auction lots, driving the price up as they compete for your unwanted goods. Then they’ll arrange to ship from your warehouse and take possession of your inventory, with no need for back and forth ne..
The more consumers shop, the more likely they are to make returns. Customer returns are an inevitable part of doing business, especially with the continued growth of eCommerce. In 2020, consumers spent $861.12 billion online with U.S. merchants, according to Digital Commerce 360.
When you consider 30% of all products ordered online are returned–compared to 8.89% in brick-and-mortar stores–you might be wondering what happens to all those returns? For businesses like Amazon, the volume of returns and time it would take to reinspect or relist these items is simply not worth it. Not to mention, it costs too much money to continue storing these returns when they could make space for new items. What they do instead is sell them at huge discounts on online liquidation sites, freeing up warehouse space, and earning a bit of profit back all in one!
For start-up retailers, discount store owners, flea market vendors, and online resellers, selling Amazon customer returns is a great opportunity to turn a profit.
Can You Make Money Selling Amazon Returns? The simple answer is yes. Reselling online is completely legal and surprisingly easy. The term for this is retail arbitrage. Retail arbitrage is the process of buying goods at a discounted price and selling them higher, for a profit, usually online.
For example, say Amazon has a sale on keyboards. The original MSRP is $30, but on sale, the price is $15. You purchase all the keyboards they have in stock at the discounted rate and resell them for $29 a piece. You make a $14 profit on every keyboard you sell (excluding taxes and shipping). This is retail arbitrage. You can apply this method to absolutely any consumer good. The most common items that resell for strong profits include toys, appliances, electronics, and clothing.
First-time buyers should note that the moment a customer breaks the seal on an item and sends it back, it is no longer considered brand new. It will always be a customer return with varying conditions. S..
Walmart is one of the largest retailers in the world. And when you consider their $524 billion in revenue, you might also wonder what happens to their overstock, and customer-returned inventory.
Many business-savvy people are looking to buy this inventory directly from the retailer to resell for a profit. This inventory is great for:
Small businesses offering discount gear Small businesses just getting started Online shops looking for low priced, high-quality inventory eBay sellers Discount store owners Amazon sellers Flea market vendors By purchasing directly from the source you are buying high-quality merchandise from retailers who want to move the inventory as quickly as possible and simply get the fair market price. Until recently, unless you had a direct relationship with big-name retailers or are a large company yourself, obtaining this merchandise was difficult. That’s what makes Walmart liquidation auctions the perfect solution.
Buy Walmart Returns From the Source Official Walmart liquidation isn’t as hard to come by as you might think either! All the big companies you know – Amazon, Lowe’s, and Target, among others, sell overstock and customer returns (aka liquidation inventory) via their own B2B marketplaces. Buying directly from the source ensures the merchandise is shipped only once, from retailer to you (eliminating middlemen and markups). This translates to better profit margins that flow directly to your bottom line. For more reasons you should ditch the middleman liquidator, read this blog!
Walmart liquidation lots are often sold by the truckload with bulk options in a variety of categories made available to you. General merchandise truckloads come with 24-26 pallets, which might sound a bit overwhelming, but is really a great opportunity. You can offer your customers variety and increase your chances of getting in-demand inventory like electronics, health and beauty products, and toys that tend to move quickly.
A few reminders about buying Walm..
The latest $1.9 trillion stimulus package being discussed and voted on in Congress is slated to hit President Biden’s desk by Wednesday, March 10, 2021. Also known as the American Rescue Plan Act, small business owners should be on the lookout for the latest information, as the bill has yet to officially be signed into law.
The package earmarks money for stimulus checks, small business loans and grants, and unemployment benefits. Small businesses get another $50 billion in aid, this includes support for shuttered venue operators, food service businesses, and more. We highlight the main points that may pertain to you and your business below. For more information, please visit your appropriate state’s government website.
Paycheck Protection Program (PPP) Another $7.25 billion in funding is being allocated to the Paycheck Protection Program. For small businesses, the forgivable loan program has provided much-needed support for businesses negatively impacted by the pandemic.
Who is eligible? Small businesses, independent contractors, self-employed individuals, sole proprietors. Individuals with felonies (non-fraud-related) may also apply. Individuals with delinquent student loans may also apply. Small business owners who are legal residents (or non-citizen), Green Card holders, and individuals on visas may also apply. For First Draw PPP Loans and Second Draw PPP Loans, read more at www.sba.gov/ppp.
The previously established two-week window for exclusive PPP loan application by the Small Business Administration (SBA) for businesses with fewer than 20 employees may be over, but you can still apply before the program’s expiration on March 31, 2021.
Economic Injury Disaster Loan (EIDL) Advance Grants The new stimulus package allots $15 billion for the EIDL program. For eligible businesses with less than 300 employees and in low-income communities, this program can help. The first window allows small businesses to receive up to $10,000 each.
If you experienced more th..
Consumer electronics can be a lucrative sales category for retailers. It seems that everyone wants the latest and greatest smart gadget or wireless device, and there are times when you may have trouble keeping inventory on the shelves. But there is a downside, too: electronics returns.
As much of the world shifts toward online shopping, product returns of consumer electronics are on the rise. Because online shoppers don’t get to try products out in person, they tend to return items more frequently. These “changed my mind” returns are labeled NFF or No Fault Found, and they make up about 68% of online product returns. Where electronics are concerned, NFF returns can be a big hassle for retailers.
Preventing NFF Electronics Returns There are several common reasons shoppers list for NFF electronics returns. Each of these reasons offers retailers an opportunity to improve the product’s webpage, offering additional information to allow consumers to make a more informed decision. This added information, in turn, can help cut down on NFF returns in the future.
Missing Features One common reason for returns is that the product is missing a specific feature that the customer needs or expected it to have. Unless you are the manufacturer as well as the retailer, you likely can’t change the features included on items you sell. But you can make clearer product listings, letting consumers know exactly what features are included with each product.
Be sure to include a full list of features in every product description. It’s also a good idea to check the images on each product page. Include pictures that show the major features consumers can expect each product to have. And ensure your images don’t suggest features that the product doesn’t actually have, as this will lead to precisely the kind of confusion that results in returns.
SetUp Is Too Complicated One of the most common reasons for negative reviews is a complicated setup process. Users want a streamlined and simplified..
In 2020, consumers spent $565 billion online with U.S. merchants, according to Loss Prevention Magazine. That’s 14% of all U.S. retail sales! As impressive as that number is, that doesn’t mean that everyone receives their products and lives happily ever after. eCommerce returns more than doubled from 2019 to 2020, approximately $102 billion of merchandise bought online was returned. Some of the top reasons consumers return their online purchases include: 20% receive damaged products, 22% products received look different, and 23% receive the wrong item.
In this post, we’ll break down:
What happens to customer returns Why you should consider buying return pallets How to buy Amazon return pallets Where to look for quality returns Where Do Amazon Returns Go? 30% of all online purchases get returned, versus the mere 8.9% of goods are returned to physical stores. This shouldn’t be shocking considering nearly 49% of retailers in the U.S. offer a free returns shipping policy. Convenient for customers, but a headache for retailers. It’s naturally worth asking – where do so many Amazon returns go?
Retailers and sellers on Amazon could put them back on virtual shelves, but think of the cost it would take to inspect, repack, and relist. It is more attractive from a cost and time-savings perspective for companies to liquidate these returned products. As the saying goes, out with the old and in with the new.
The good news for resellers is that not every Amazon return is damaged or faulty! Like we said, sometimes items get returned for other reasons that include buyer remorse, simply not needing the item anymore, or expecting it to be different. So that means many of these customer returns will be new and in unopened condition.
Large retailers like Amazon then sell pallets of customer returns to liquidators—giving small businesses and resellers access to that merchandise through online liquidation marketplaces. These online marketplaces make sourcing high-quality branded and ..
Looking for a product category to specialize in for your resale business? Electronics are easily one of the best products for online reselling, but also come with their own set of challenges. We’ll break down both the pros and cons of buying and reselling liquidation electronics.
What Makes Reselling Electronics Worthwhile? Consumer electronics are a big part of our daily lives—this makes them lucrative, in-demand inventory for reselling. The fact that there are so many smartwatches or activity trackers (for example) available, show the popularity of the product. Since a lot of people are purchasing these items, this allows resellers to move inventory fairly quickly.
Historically, video games, gaming consoles, and Apple products are also sought-after items that generate higher pricing. Since electronics tend to make for larger profits than other products, you’re right to think this is a good vertical for your resale business to tap into.
“Electronics” is the most popular category for both purchases and sales on Amazon. Amazon Prime Day 2020 data shows that 32% of U.S. Amazon Prime buyers purchased Amazon-branded electronics during the sales event—now imagine the demand for other big-name brands!
Sourcing liquidation electronics is a good way to get your hands on a lot of inventory at once and for a good price. There are tons of options for small business owners and resellers now. Whether you choose to go for refurbished/ overstock inventory, or through wholesalers or online liquidation sites, there are plenty of opportunities to earn a profit!
Bestselling Products in Electronics Amazon conveniently curates a bestsellers list that is updated hourly. This is a huge benefit to resellers as you can easily see what’s in demand and selling fast. Here are some of Amazon’s best sellers in electronics right now:
Fire TV Stick Amazon Smart Plug Roku Streaming Stick+ Echo Dot Smart Speaker, 4th Gen Fire 7 Tablet Echo Show 5 Wyze Smart Home Camera Kindle Paperwhite HP Com..
If you’re hoping to start an Amazon business or expand the one you’ve already been building, inventory sourcing is key. Where do you get goods to sell that are both in demand and offer you a decent margin of profit? Fortunately, there are several sources you can turn to for selling inventory on Amazon.
Thrift Stores and Local Sales If you have a smaller shop and you’re not looking to move products in bulk, you can often find great inventory in your own community. Hit your local thrift stores, yard sales, and the clearance racks at your favorite stores. You might be surprised to see how much you can make by purchasing these items at retail and then marketing and selling them on Amazon.
To go this route, you have to be very familiar with your product category and have an innate sense of what will and won’t sell. You also have to have a lot of time on your hands and a keen eye, but if you love to shop, it might just be right up your alley.
Drop-Shipping Drop-shipping is a popular way of selling online, and it can be profitable if done well. In a drop-shipping business, you contract with a wholesaler or distributor and they ship goods directly to your customers. This means you can sell products on Amazon without inventory taking up space or money.
The downside to this method is that the margins are likely to be extremely slim, and you have essentially given control of your business over to the company you’ve contracted with. This means if they mess something up, the customer service nightmare is yours and it’s your business reputation on the line. That said, if you’re looking for a completely hands-off approach to inventory, drop-shipping could be the answer.
Wholesalers So what about just ordering from those wholesalers and then handling the inventory yourself? It’s another option and one that a lot of businesses choose. Your margins will likely be better and you’ll have full control over customer service issues like the way goods are packaged and shipped.
2020 has changed the retail world in a lot of ways. Consumers became far more comfortable with online shopping than ever before. Meanwhile, physical stores had to lower their maximum occupancy drastically in many areas or close their doors entirely in others. Everyone — from Fortune 500 companies to small mom-and-pop shops — had to shift priorities toward digital shopping, curbside pickup, and other practices designed to minimize crowds. What about in-store returns?
While some stores stopped accepting returns entirely for a while, the concept has rebounded, and then some. We’ll explore the ways online shopping and other 2020 trends are shaping product return behavior into 2021 and beyond, and what this means for your brand.
Online Shopping Returns Industry analysts have long understood that an increase in eCommerce sales leads to greater returns. The general consensus is that about 30% of products purchased online are returned to sellers, and that’s in a typical year. There are several reasons that pandemic online shopping returns may be even higher.
Adding to the returns chaos, some brick-and-mortar stores are allowing consumers to ship returns back to them. They’re hoping this will help keep foot traffic down, making it easier to maintain social distancing. Growth in BOPIS sales will likely increase online returns as well. If you’re not prepared to deal with it, all of this will add up to large amounts of returned merchandise clogging up your valuable inventory space.
In-Store Returns The move toward eCommerce isn’t the entire story here. In fact, some digital-native brands like Bonobos, Casper, and Glossier are developing a physical presence with new brick-and-mortar stores. They will likely use these retail spaces to process returns as well as for in-person sales. One clear example is the new Amazon Fresh Grocery Stores, which now accept Amazon.com returns. This is in addition to Amazon’s return drop-off locations in traditional stores like Kohl’s and Whole ..