It’s predicted that by the end of 2022, Liquidation Auctions, e-commerce will be responsible for nearly 20 percent of all US retail sales. That may not sound like a lot, but when you consider that equates to around $500 billion, it’s a pretty big chunk of our economy.
Guide about Liquidation Auctions Sales
If you’re wondering if it’s time to cash in on that, you’re not alone. And one of the best ways to turn a profit in e-commerce is by flipping liquidated products on sites like eBay and Amazon. Here’s how to do it.
Find your Products
The first step in flipping goods is to find low-cost items to sell. You can find items to flip anywhere, with thrift stores, discount stores, yard sales, and auctions being great places to look. But one of the best ways to find quality new products which sell well is through liquidation sales. These products usually come on pallets that are sold for fixed prices or auctioned off to the highest bidder. These are typically new items previously sold at stores like Walmart or Target that were liquidated at lower prices. You, in turn, can buy these products pretty cheaply and sell them for new or almost new prices on an online platform like Amazon.
Research your Product Prices
Just finding the products to sell is only part of the equation. In order to know whether those products will make you money, you need to see how much they usually sell for. On eBay, this is an easy task. You simply type your product into the search bar and then select completed listings from the menu. For example, if you bought a pallet of dirt bike helmets, you just search for that phrase and see exactly how much that item usually sells for, and how frequently sales are made.
But new products (like the ones you would get from a liquidation auction) typically command a higher price on Amazon. And it’s harder to determine good prices there. What most sellers do is watch the prices set by other sellers to see the range, and check the sales rank to see how many sell. Some services offer a free sales estimator for faster calculations. Each category is a little different, but most of the time, if your product is ranked under 100,000, it is probably an item that will eventually sell. Of course, the higher the ranking, the faster the sales will usually be.
Calculate your Profit Margin
Now that you know how much you can sell your product for, you need to decide how much profit you need to make for it to be a viable sale. A lot of sellers make mistakes when calculating this number. Even though you might be happy with a $1 profit on each item because you have 1,000 of them, you might end up losing money if you don’t add up all your costs.
For example, you need to know how much it costs to transport your product to you if you’re having it shipped. Or how much it costs you to pick it up. And then you need to figure in any fees, packing materials, and shipping costs that should be added in. All online markets have fees that they charge their sellers to do business on their platforms. And depending on what services you use, they may be more. For example, sellers who use Amazon’s FBA platform (where Amazon stores and ships products for you) have to pay a membership fee. You also can’t forget to figure in Paypal or other payment service fees.
Purchase your products
Adding all this up should give you a good idea of how much profit you’d need to make in order to cover all fees and still have some revenue. All that’s left to do now is to buy the merchandise, list it for sale, and watch the money roll in. With a little determination and research, you could quickly be on your way to earning big bucks.