Many people have an interest in selling products for their internet business on eBay, Amazon or through other online auction sites, their own websites or even with other offline sources. I often get questions from my readers when it comes to buying bulkdiscount merchandise from bulk distributors or bulk wholesalers.
Here are 7 top questions to help you to buy in bulk to resell for profit!
1. Do I have to purchase surplus merchandise or wholesale goods by the pallet or even truckload?
In short, it all depends on what you want to do. Are you planning to purchase wholesale products or surplus products? With bulk wholesale you will be able to purchase bulk lots of units or an individual pallet all the way up to a truckload. With surplus and liquidated merchandise you can purchase by one pallet or an entire truckload. It's up to you.
2. Are there usually minimum order quantities required to purchase wholesale closeouts, wholesale goods, or other types of bulk products?
If you come across someone telling you that they have minimum purchase requirements... run the other way! 99% of the time this is a middleman (if not all of the time). Now if you're purchasing a bulk wholesale lot, there may be 1 pallet, 3 pallets, 7 pallets, 15 pallets or more in the load that you will not be able to cherry pick from and that is good but that is not a minimum purchase requirement.
In other words, the answer would be no, there shouldn't be any minimum purchase requirements or minimum order quantities.
3. Since I am just starting out in trying to create an ebay wholesale business, I have a very limited budget. What can you tell me about bulk pricing that I might expect?
As far as the price ranges, it all depends on the product category you are purchasing in as there are various product categories. Different product categories have different price percentages from the different stores and they can vary depending on who you purchase from. If you're not buying direct from the source, then the prices will be inflated because you will be paying a surplus dealers costs so he can make money. It also depends on the market of the products as well.
4. "What do you think a common misconception is among the average person looking to buy wholesale or surplus merchandise to resell?"
Many people enter into purchasing wholesale bulk or light bulk surplus merchandise with a garage sale mentality. They kind of browsing around and think they find a great deal purchasing in bulk discounts, they go for it and then they find themselves with a room full of junk products!
If you don't have a plan to know what you're doing, or know what types of products you're looking for, or even how to buy them, you can get burnt really bad and lose your investment. The biggest and often most common mistaken idea people have is that they see or hear of other people buying bulk discount product for such a low price, they automatically want to go do the same.
It's important to understand how to buy bulkwholesale products and surplus merchandise. It's also important to know what products to look for and know how to sell them and then to have a plan to buy and a plan to sell. You need to educate yourself before you get involved. Learn ALL of the right questions to ask, as well as learn HOW to buy and WHERE to buy!
5. "Let's assume someone wants to sell surplus items using online auctions and are just starting out in trying to create an eBay auctions business on a limited budget. Are there any tips or advice you could provide to make this work even on a shoestring budget?"
Again, it all depends on what you want to do and what product category you plan on purchasing in. It also depends on the product category you are purchasing in. Different product categories have different price percentages from the different stores and they can vary depending on who you purchase from. If you're not buying direct from the source, then the prices will be inflated anywhere from 3% to 20% depending who you're dealing with.
For starting on a shoestring budget, tips and advice would be to start slow and low. Have a plan to know what it is you want to do, know how to buy it correctly, know how you're going to sell it and then do it quickly. Roll any and all profits into the next pallets or load and continually do so until you are at the point you want to be. It can done if it's done right, just make sure to have a plan to do it correctly.
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6. "How should someone go about sourcing surplus and liquidated products?"
Any time you're considering purchasing a pallet or a bulk load from a bulk wholesaler or a bulk distributor, it is essential that you know what types of product and what category of product you're interested in purchasing.
Are you interested in toys, baby items, household goods, electronics and so forth? You don't want to use the flea market approach, whereas, if it looks like I can buy cheap and resell it, I'll go for it. You want to know whether you can sell the product and know who makes up the market that you're selling it to. To make a profit, you have to have a plan.
If you just want to sell something to make a little extra money, then the flea market approach may work for you. But if you really want to build an internet business with buying pallets or bulk merchandise, you must know the different types of product categories and the different types of products that come in that specific product category that you're purchasing in.
Know the prices of them. Always try to know what the market is bearing for the products in each of those categories. You don't have to know every little detail, that would be impossible because there are billions of products in the world, but know as much as you can about each of the product markets you're considering.
Wholesale suppliers will or should be able to tell you what the prices for the products are going for in each of the different categories for the bulk lot. Every category is different with different prices from different store outlets. You're job is to know what the individual items will bring on the market if you're reselling them that way. The Ultimate Insiders Surplus, Wholesale and Liquidation Buying To Resell For Mega Profits Guide will show you exactly what categories there are and the prices you can expect to find in each as well as how to purchase products in each of these categories!
7. "What do people need to understand when trying to source surplus product competitively?"
Resellers need to understand that there is a difference between wholesale products, liquidation and surplus merchandise. I have found that many people think these two are the same, but it is very important to learn the difference if you're going to get in the game. If you are finding products at wholesale, most people on eBay are not selling wholesale merchandise, they are selling liquidated and surplus merchandise.
There is a large difference in this and it is a very important one to understand. Even when sellers on eBay do sell wholesale merchandise, it often is to the point where they don't make much profit on them because they have to be competitive with the other similar offers that are selling for less than wholesale. They are competing with sellers who are selling below wholesale costs. These other sellers are purchasing these items for a percentage of the wholesale costs and therefore can still make a good profit margin by selling items for less than the wholesale cost.
I often get emails from people expressing their frustration at trying to find merchandise to resell. Sometimes the frustrations are not from not being able to find product to resell but usually arises when they think they've found a product or supplier only to find that the products are selling for the same price or less on eBay than what they can get them for! I have had several correspondences with people dealing with the same frustrations and I completely understand because I've been there.
Every time I thought I found something hot, it would be very difficult just to make my money back if I were to sell with online auctions because there were already tons of them being sold for far less than what I could get it for. Unfortunately, this could be because someone is trying to use a cheap wholesale list which is list of middlemen who are robbing you of profits because they are hiking up the cost of the goods.
I can literally spend hours answering many questions but the best way to go is to discover all of the details in my book. I would strongly suggest you pick up a copy of it a
Read it and learn all you can. I say that because the questions you are asking will have much more detailed answers in it and it's why I wrote the book.
You will have not only the know how but instant access to over 1000 sources as well as the reclamation centers directly that almost every seller goes through in the industry. Why go through the middleman when you can go direct?
Learn how to buy bulk wholesale, surplus merchandise and liquidated goods!
Pick up your copy of my book and start making money with bulk wholesale today!