The Value of Selling Liquidation Inventory
One of the newer business models that many are increasingly turning to involves liquidation inventory – products sold by companies that are either shutting down, overstocked, or are in desperate need of cash. Rather than hang on to their existing supplies, equipment, and inventory, they choose to offer these to wholesalers at discounted prices instead. They, in turn, list these on their digital storefronts.
However, the bulk of liquidation inventory comes from open-box customer returns, which refer to goods that are returned by buyers but are found to be in good condition and in working order. Instead of giving these back to the manufactures, they are sold at a profit instead. Many e-commerce platforms – particularly, Amazon – have seen the value of these items, offering them to interested sellers who put them up for sale again under the “used” category.
Taking advantage of liquidation inventory has been a lucrative business for many Amazon sellers. “I find it easier,” says Anthony Connelly, whose storefront is filled with liquidated inventory. “Someone already did all the hard work – ranking a product in Amazon search results, building reviews, developing content. The competition is even less because you’re often just competing with the brand for sales.”
He continues, “We’re going to do $1 million in sales on Amazon this year, $500,000 on eBay, some small amounts on local marketplaces. And I’m only in month nine of this business.”
Besides Amazon, liquidation inventory can also be bought on from some of the country’s most-trusted retail names, including Walmart and Lowe’s Hardware. Additionally, websites like B-Stock Supply, Liquidity Services, and BULQ have made them available to interested wholesale customers.
Without a doubt, an e-commerce business based on liquidation inventory can prove to be profitable – and even lucrative. For those looking to dip their feet into the industry, this model is definitely worth taking a look at.