What to Expect From Liquidation Auctions and How To Make Money
What to expect from liquidation Auctions:
If you’ve ever attended a traditional liquidation sale, you know they are usually held by a struggling retailer as a last-ditch effort to make money. Often these sales are the last step in the bankruptcy and /or closure of the business, but what about online liquidations? Have you ever heard of sites that sell whole lots of items at very low prices so that buyers can turn around and sell the individual parts at a higher price? If you are willing to work hard, do your research, and stay patient throughout the buying process, online clearance sites can offer you a huge opportunity to make money.
Although used identically with other types of auctions, a liquidation auction technically refers to a company selling its assets.
These assets can be unsold inventory, office furniture or anything else that company owns and is valuable. The auction maybe conducted by the company itself or conducted as a result of bankruptcy or legal judgment.
As with all types of auction, bidder has the opportunity to get the quality products at very huge discounts.
How to Make Money on an Online Liquidation Sites
If you are looking to cash in on liquidation sites, you must first understand how the site works. Most often, the site will auction a pallet or a lot of similar items at a fraction of the typical prices of the items. It is not uncommon to find items at less than 40% of their normal selling price. Before you get started and start placing bids, consider the following tips to make sure you make a good financial choice:
1. Research the item.
Do everything you can to find the item before making a purchase. Understand the item’s current retail price perfectly and make sure you’re not buying something that’s already part of a saturated market full of competing resale companies (electronics fall into this category).
2. Check the condition of the items.
In some cases, the items offered at the lowest prices on clearance sites will be classified as “used”, “refurbished”, “shelf drawers” or “recovery”. Do your best to avoid any of these descriptions, as the items are unlikely to be available for resale. Keep searching until you find new items listed, as they will give you your best chance of getting a great ROI-return on investment.
3. Understand the terms of the site.
Before buying anything, make sure you understand all of the site or company requirements for your purchase. Does the site charge service fees? Are there high delivery costs? Do they give you exact figures rather than estimates of the various fees you will have to pay? Also don’t forget the sales taxes!
4. Review the manifest.
If you decide to make a purchase, do a detailed review of the shipping manifest. Do not leave the site and do not sign the delivery until each item has been checked and taken into account.
5. Online Liquidation Websites
This is additional just to help you buy liquidated stocks (items).
If you’re ready to start buying liquidated stocks, check out these sites below for options to get started. Don’t forget the tips above to make sure you don’t pay too much or get scammed!
Few trusted sites that offer liquid items that you can buy are Liquidation.com, PalletBid.com etc.
6. Selling on Networks
After purchasing different items from liquidation auctions you can sell it on online platforms such as Amazon, Facebook, E-Bay etc. It’s a huge market place where you can sell your purchased auction items and earn serious money and make living out of it.
So this was all about how items are filtered, researched and purchased on liquidation auction websites and then sold on websites like Amazon and e-Bay. People are making really good amount of cash from it and its easy and cheap method to make extra money. Just remember, idea of the market is extremely important before stepping into or buying any product from auction as sometimes it can get tough to sell the item if the product is purchased at wrong price.