Liquidation.com Review

Today, we’ll review the wholesale source, Liquidation.com. We get the information you need to make an informed decision. If there’s anything else you’d like to know, please leave a comment.

What is Liquidation.com?

Liquidation.com is an auction site that specializes in wholesale merchandise. Unlike, Salehoo.com who is a directory of other suppliers, Liquidation.com carries everything from jewelry to computers to tools to industrial ovens. Don’t expect to buy 1 item here unless of course it’s an industrial oven or a truck. (Yes, they also have wholesale lots of cars and trucks.) Most lots consist of 50 to 100 pieces. The site is very active and always seems to have an abundance of merchandise to choose from. Their stock ticker is LQDT for all you financial analysts out there.

What kinds of products are they offering and how do the prices compare?

They offer new, used, returned, refurbished, and salvaged merchandise. Most have the disclaimer that all sales are as-is. Meaning, those 20 lcd monitors you just bought for $100 might not actually work. It’s up to you to check out the products before placing your bid. This is my official warning for you to read the fine print and do a reality check before placing any bids. There is a nice selection of merchandise on this site, but you still need to watch out for the duds.

Do they have name brand merchandise?

Yes. A quick scan shows that they carry products from Dell, Apple, HP, Compaq, Samsung, and a slew of other name brands. (Sorry, that was my techie side showing. You’ll also see brands like: Coach, Kenneth Cole, Movado, and Rocawear.)

Do they have the products that are in demand?

Yes, the products you’ll find there are the types of products that are in demand. Web cams, LCD TVs, purses, jewelry, and consumer electronics are all found at Liquidation.com. Their most popular category is consumer electronics with jewelry and watches coming in a close second. The electronics products generally aren’t the latest models, but you’ll see that the prices take that into account.

How are their prices?? Is there room for markup?

This is an auction site, so the products go for the price you bid. Popular products may get bid up to fairly high amounts, but if you do your research before bidding, you should be able to set a budget and stick to it. $100 for 10 digital cameras might be a great deal, but $1200 not so much. There are tons of great deals to be found on this site, but again you need to watch out for the duds. *See the comments…


How is the shipping?

Liquidation.com has warehouses all over the United States so you should be able to find items at a location near you. This will help immensely when shipping large wholesale lots. This is another area that can catch you off guard. For large and cheap items, the shipping could exceed the amount paid for the product itself. They have links on the auction pages so you can get shipping quotes or ask questions before placing your bid. DO THIS! Those monitors won’t be a great deal if you have to pay $1000 for shipping.

How is their customer service?

I was surprised to find actual email addresses available on their contact page. You can easily email or call their support or service departments with any questions. They also give the phone number to their headquarters which you can call from 9AM to 6PM Eastern time.

Summary of Liquidation.com

I think Liquidation.com is an excellent place to get started with wholesale merchandise. You can easily browse the products and prices without having to commit to anything. With the power of the Internet, you can find a product on Liquidation.com, open Google in a new window and search for the current price. I also recommend searching Ebay for the product to determine the going price and scope out your competition. If the market is flooded with $2 auctions for your product, just look for another product.

Registration is free and allows you to ask your questions to the sellers.? Don’t be afraid to ask tough questions.? Once you win an auction, you’re responsible for what you bought.? Whether you just want to get started selling wholesale products or you just want to sell a few things on Ebay, I think Liquidation.com is a great place to test the waters. Click here to register for a free account.

Disclosure: I have an affiliate account with Liquidation.com. If you sign up for an account through a link on SellWholesale.com I might receive some compensation.



For another source of wholesale products, please check out our review of Doba.com.

Sell Wholesale Products Online

Once you find a good source for wholesale products, how do you go about selling them?

You have many choices for how and where to sell your products, but the product you’re selling has a great impact on where you should concentrate your efforts.

Ebay

The easiest and least cost-prohibitive route for selling things online is to use an auction site, like Ebay.? You technically don’t even need to know any html to list your item.? However, adding pictures and a bit of html and styling will help tremendously.? The cost for a listing is very reasonable, even if you have to pay a small percentage of your sale price.

Once you have your listing up, you simply wait for bidders.? As buyers find your product, they’ll (in theory) place a bid of the max amount they would pay for it.? However, the “price” of the product only goes up by a small increment.? For example, if a product is selling for $1 and I bid $20, the price would only go up to $1.50.? If someone else bid $5 after me, my bid would automatically increase to $5.50 because my max bid was higher than theirs.? (prices are estimates. I’ll have an Ebay primer soon with more exact information.)

When the auction ends, the highest bidder wins.

That’s it!? Buy your products at wholesale prices…Sell them for a higher price on Ebay…Reap the profits!? What could be easier?

Website

Starting your own ecommerce website is *almost* as easy as selling on ebay.? The steps for gettings started are:

  • Choose a domain:? This is the name of the website where visitors will go to buy your product.
  • Buy Hosting: To put up a website, you need to pay someone to host the files for you.
  • Build your Website: Design it yourself, or use a 3rd-party system.
  • Add your Products: Again, design the listing part yourself or add your products through the 3rd party software.
  • Set up a payment system: Give your customers a quick and easy way to pay you.

That’s about it.? Now for a little mor detail.

1. Choosing a domain:

You’ll want a domain that is easy to remember and relates very obviously to what you’re doing online.? For example, if you sell fire extinguishers, a good domain might be WholesaleFireExtinquishers.com.? Once you decide on a domain, you have to purchase it through a registrar.? A common registrar is GoDaddy.com which sells domains for about $10.

2. Buy Hosting

After you get your domain, you’ll need a hosting account to get your website online.? (This step might be a little out of order since you don’t need hosting until after you’ve built your site.)? The cost for hosting can vary, but you can generally expect to pay $5 to $20 per month depending on your needs.? GoDaddy.com also offers hosting, but I’ve had a better experience through my web host, LunarPages.com.? They’re very reliable, and don’t have some of the restrictions that you have to work around with a GoDaddy account.

3. Build your Website:

This is probably the most difficult of the steps if you’re doing it yourself, or one of the most expensive if you’re paying someone else to build your site.? The cost for a custom ecommerce website starts at about $500 and can easily get into the thousands of dollars.? If you don’t have a huge budget and you’re not a skilled web designer, I recommend using a 3rd party ecommerce solution.? One I’ve used in the past is OSCommerce.? You need to have a little technical skill to get it up and running, but it’s mostly about configuring it to your preferences.? This is the fastest route for getting your site up and running.

4. Add your Products:

For this article, I assume you already have an inventory or source of wholesale products that you’re planning to sell.? If you built your website yourself, this is the part where you code all of your products in.? However, if you used OSCommerce, you simply need to fill in the details about your products and the software takes care of the layout.? As far as maintenance goes, the 3rd party solution will save you a ton of time down the road.

5. Set Up Your Payment System:

If you’re selling products online, you’ll want to accept credit cards.? When customers are at your site, you want to have as few barriers as possible between your potential customer and a sale.? Two cheap and easy ways to get started are PayPal and Google Checkout.? Both are free to sign up, and only take a portion of each transaction.? I believe both are still below 3%.? If you don’t want to deal with contracts and monthly fees, these are your best choices.? If you want to get that percentage down, you could sign up for a merchant account and process the credit cards yourself.? Usually, merchant accounts come with very strict contracts and high monthly fees or minimums.? Unless you’re doing a massive amount of business, PayPal or Google Checkout are the way to go.

Once everything is set up and working properly, all you have to do next is get people to your website.? You’ll want to use a mix of search engine optimization, pay-per-click advertising, and other advertising tools, but we’ll save that for another time.? For now, just get on Ebay or get your website up and running.? I hope this helps you get started in the resale business.? If you have any questions or comments, please use the comment system to let us know.

What About Rack Jobbing?

Robert at WholesaleU.com has a great post about a form of reselling that I didn’t think was this widespread.? It’s called rack jobbing, and it might be something for you to look into.? And, I couldn’t stop myself from reading it as jack robbing.? Why would I want to be a jack robber???? There! Now you’ll do it too!? Enjoy!? 🙂

Basically, rack jobbing is a relationship between a you and a retailer where you display your goods in their retail location.? The retailer only pays for products sold, and you each benefit with a little profit from each sale.

The only point I disagree with is that he says, “There is no reason for a store owner or manager to turn you down when you offer to place merchandise free of charge. There is no risk involved for him, therefore it is not hard to get you initial accounts setup.”? The next sentence warns that you’ll have to tell the retailer they’re responsible for stolen items.? It’s not the most terrible thing in the world, but it is more merchandise they have to keep from being stolen.? Depending on where you’re placing your products, they might not be used to watching out for thieves.? (ie. hair salon or other service business)? Most businesses should accept your proposition of being a rack jobber, but be prepared to put them at ease over this point.? Also, I want to mention that this policy is very important for you to stick to.? If you don’t hold the retailer responsible for stolen items, they could fudge the sales numbers and report them as stolen, thus shifting profit from your pocket to theirs.

In addition to Robert’s ideas for getting started, here are a few of my own:

  • Sunglasses at hair or nail salons
  • Car accessories at an auto body (tire gauges, air fresheners, etc…)

It was a very interesting article that I hope inspires a few readers to give it a try.? If you do, let us know how it goes.

If you’re looking for some great products to sell as a “rack jobber”, here are a few good sources:
Salehoo.com – Wholesale Supplier Listings and Product Research
Liquidation.com – Wholesale Auctions (Individual pieces to truckloads)
DOBA.com – Drop Shipping Source

Wholesale LCD TV Prices Falling

A warning to anyone preparing to get into the wholesale TV business. The New York Times has an article stating that wholesale TV prices are getting ready for a big drop. Companies have excess inventory and need to make room for new models.

What does this mean for you?

Basically, be very careful if you’re getting ready to buy a lot of LCD TVs. You might get a great price that will turn out to be very high by the time you’re ready to resell them.

They’re also reporting a lower-than-expected demand for LCD TVs. That means, if you have a bunch of TVs that you just bought at too-high-a-price, you’ll probably have trouble moving them. 1. You’ll have to price them higher than your competition because you didn’t wait for the price drop. And 2. Nobody’s buying them anyway. (Not “nobody” but you get the picture. High prices and low demand generally doesn’t work out in the wholesaler’s favor.)

What is Wholesale?

If you’re reading this blog, you may already have a good understanding of what the word “wholesale” means.? However, it seems that more and more people are losing sight of what wholesale really is.

According to the United Nations Statistics Division: “Wholesale is the resale (sale without transformation) of new and used goods to retailers, business-to-business trade, such as to industrial, commercial, institutional or professional users, or resale to other wholesalers, or involves acting as an agent or broker in buying goods for, or selling goods to, such persons or companies.”

Basically, “wholesale” simply means someone buys a product, and without doing anything to the product, sells it to someone else.

Many consumers want to buy products at wholesale prices, but don’t want to bother buying a palette of the product they want.? When I was running SellSunglasses.com, I had a minimum order of 5 dozen pairs.? Regardless of this policy, I would frequently get requests for one dozen or even one pair!? Whether I caved depended on the tone of the request.? Now that I have this wholesale blog, I can explain why the policy existed.

  1. There just wasn’t that much profit in selling one pair or even one dozen pairs of sunglasses.? I offered free shipping, so most of my profit was eaten up by that.? Add in the time to handle the transaction, and it just wasn’t a winning proposition for me.
  2. It’s the wholesale community’s responsibility to not compete with the retail community.? If I sell a real customer 10 dozen pairs of sunglasses, which they hope to sell for $20/pair, how would it look if I started stealing his customers by selling them 12 pairs for $20?

When I started in wholesale, I would tell a potential supplier that I couldn’t buy “a lot” of their product now, but once business picked up, I’d be able to buy “a lot” more.? The reason “a lot” is in quotations is that it’s entirely relative to whomever is saying it.? To me at that time, 100 dozen was “a lot”.? Unfortunately, it wasn’t a lot (yeah, enough with the quotes already), to the suppliers.? In order for me to get wholesale prices, I was going to have to prove that I was buying on a “wholesale” level.? I got a small discount, which was enough to get me started.? As my orders grew, my price went down.? I was moving from retail prices to more “wholesale prices”.

I suppose this blog post can be taken as a warning of what to expect when you’re getting started.? You can’t just call a wholesaler out of the blue and expect to get their rock-bottom prices, unless you’re willing to plop down a stack of cash for a boatload of merchandise.? You’ll need to prove that you can move a substantial amount of product before they’ll consider you a genuine customer.? Substantial is another one of those relative words.? You’ll need to figure out what that means to you as well as to your supplier.

Here are your takeaways:

  • Wholesale is simply the buying and selling of goods.
  • When buying a small quantity of products, don’t expect “wholesale prices”.
  • If you want wholesale prices, be prepared to spend “a lot” to achieve the desired discount.

Good luck, and now if you have a customer ask what your wholesale price is for one item, you can roll your eyes and smile.? 🙂

Highest Wholesale Prices in 27 Years

According to CNN Money, “The Labor Department reports that its Producer Price Index increased by 1.2% in July and by 9.8% in the past year.”? The annual Producer Price Index for finished goods rose almost 10 percent in the 12 months that ended in July.

How are the concerns about inflation and recession affecting your decisions to make money online?? Are you more motivated to build a second income, or does the fear have you tightening your pocketbook too much to invest in such endeavors?

In my opinion, we need to continue pushing ahead.? The economy will rise and fall, but at a very micro level, we each control our own finances.? Sure, a bad economy might make it difficult to get financing or reduce the amount of discretionary income you have to “gamble” with.? If you’re looking for excuses, there are plenty.? However, if you want to succeed, YOU need to take the steps yourself.? Now is not the time to cut back on advertising.? If you have an advertising system that’s providing decent returns, Google AdWords for example, you need to stay at your current level or INCREASE your ad spend.? If you’re getting a positive ROI on your advertising, more money out means more money back to you.

Now don’t be afraid.? The economy, especially the media’s depiction of the economy, can be scary, but if you want to be successful, you need to remember one thing.? The economy works on averages.? The truly successful people in this world aren’t hurting like the average people are.

Review of WholesaleCentral.com

WholesaleCentral.com is basically a directory of wholesale suppliers and products. You are also able to use their “Wholesale Power Search” feature to search the site for specific wholesale products. For a fee, you can list your items in their directory, currently $299 for 6 months. Overall, this is a good place to start if you’re trying to find your place in the wholesale market. Also, if you’ve ever searched for the term “wholesale” you’ve probably seen their site before.

When I started selling wholesale merchandise, WholesaleCentral was a great resource for me. The directory is clearly laid out, and the Wholesale Power Search actually returns mostly relevant results. It was good for researching potential products to sell. You can easily zip through and compare several wholesale sources before deciding who has the best price and terms.

Once you have a supplier, be it from WholesaleCentral or another source, you probably want to start selling those items to make some money. Once you’re ready to go, you can sign up to sell your items on their site. If you have an acceptable profit margin, and can actually make a few sales per month, the $299 fee really isn’t that bad. Over 6 months, it’s only $50/mo. If you’re not making $50 per month in sales, you need to rethink your offering, or ramp up your marketing and advertising.


This isn’t a paid ad of any kind. It’s an honest review of WholesaleCentral.com. When I used their services in the past, I truly got results. The additional sales I received because of my listing with them paid for the fee many times over. I encourage you to do your own due diligence, but SellWholesale.com officially endorses WholesaleCentral.com.

"How to Run a Wholesale Business at a Profit" – Book Review

Wholesale Book Cover
Wholesale Book Cover

I recently found “How to Run a Wholesale Business at a Profit : Plans and Methods for Cutting Down Expenses and Increasing Sales–Helpful, Comparative Cost-Of-Doing-Business Figures Based on a National Investigation Made by the Bureau of Business Standards” on Google Books.? You may find the information a little dated, being that the book was published 90 years ago (1918).? However, there are still plenty of principles that can be put to use today.

First, here are the technical details of the book:
By: A.W. Shaw Company
Published: 1918 by the A.W. Shaw Company
222 Pages

Contents:

Part 1: Selling Methods That Have Beaten Rising Costs

  • Chapter 1: How Fast Are Wholesalers’ Costs Rising?
  • Chapter 2: The First Step in Overcoming Rising Costs
  • Chapter 3: Is There a One Best Way to Pay Salesmen?
  • Chapter 4: Fixing Profitable Sales Quotas That Stimulate
  • Chapter 5: Getting the Sales Force Ready to Go “Over The Top”
  • Chapter 6: How to Advertise to Win
  • Chapter 7: Direct Advertising That Hits Its Mark

Part 2: Keeping Overhead Expenses Down

  • Chapter 8: Plugging Little Leaks May Save Big Losses
  • Chapter 9: Cutting Down on Wasted Labor
  • Chapter 10: Ways to Speed Up the Shipping Room
  • Chapter 11: Saving Money in Handling Stock
  • Chapter 12: How Better Buildings Lower Costs
  • Chapter 13: What Should Heat, Light, Power, Insurance, and Taxes Cost?

Part 3: Can Profits be Maintained Despite Higher Costs

  • Chapter 14: Can Bad Debts Be Made “Good”?
  • Chapter 15: What About Local Deliveries?
  • Chapter 16: Equipment That Helps Pay Dividends
  • Chapter 17: Making Your Dollars Work Faster

Part 4: Actual Cost Figures That Will Help You Win Out

And of course, the Index.

This book is great for a historical look on the wholesale industry.? At its core, the book is full of principles that will help you run and optimize any business.? If you’re new to wholesale, or business in general, or if you’re tired of reading hype-filled “start your own business now!!!” books, this is a refreshing look at how our ancestors did business nearly one hundred years ago.? If you want to do the math, any dollar figures in the book can be multiplied by about 16 to represent 2008 dollars.

For those that missed it at the top, here’s another link to Google Books where I discovered this unique look at wholesale businesses of the past.

http://books.google.com/books?id=LN8cAAAAMAAJ&printsec=frontcover

Let me know what you think by leaving a comment.

– Jason Green
SellWholesale.com

Ideas on What's to Come?

Since finally deciding to start this blog, I’ve been brainstorming my ideas with my favorite mind-mapping service, MindMeister.? If you haven’t tried mind mapping, and you’re looking for a better way to take notes, brainstorm, or just organize your thoughts, I strongly encourage you give it a try.

Anyway, that brainstorming has resulted in the list of topics below that I plan on discussing.? One thing the brainstorming resulted in was that I don’t want to limit this blog entirely to “wholesale” opportunities.? The focus will most definitely be on making money online by buying and selling wholesale products, but I will also throw in the occasional random opportunity or service if I think it’s useful.? I have a strong tech background, so I’m afraid I’ll be compelled to comment on the tech world on occasion. (See above)

So here it is…the list of topics and proposed future of this blog:
(I strongly encourage you to comment if there’s a topic you’d like to see covered.)

  • Buying products at wholesale – What to buy and where to get them.
  • Selling products at wholesale – What to sell and how to sell them.
  • Starting a wholesale business – How to get set up to sell your merchandise.
  • Website Reviews – Auction sites, Wholesale Sources, Wholesale Directories, etc…
  • Scams – What you need to watch out for when buying and selling online.
  • Business Opportunities – Reviews of the few legitimate business opportunities online.
  • Fielding your questions – If there’s anything you want to know, please contact me.

I hope that covers what you’re looking for in a blog like this.? Once again, now that I’ve mentioned “business opportunities” I want to repeat my disclaimer… I will not promote anything on this site unless I truly believe you can find value in it.? Of course I’d appreciate any affiliate commissions and whatnot, but I’m not going to undermine the integrity of this blog simply to get a few more affiliates.? (If I scam everyone into a few useless affiliate programs, I’d quickly have no readers.? It’d be a bit of a downward spiral.)

Ok.? That’s enough for the intros.? Expect a new post soon with some information you can actually use.

Thank you,

Jason Green
SellWholesale.com

Why SellWholesale.com?

I’m starting this blog because there’s so much deceptive and garbage information about how to buy and sell wholesale merchandise, that it’s the best I can do to help the wholesale community.

I got my start in wholesale distribution in 2002 when I thought $55 was a great deal for a dozen pairs of sunglasses. When I got the sunglasses, I noticed the brand name on the box.? After a couple of searches, I found the main distributor’s website. I contacted them with the idea that I could help distribute their sunglasses if they could give me a better price. We settled on a price per dozen around $20. I marked the “compare to” sunglasses up to around $30 per dozen and the main distributor would dropship for me in unmarked boxes. This is how SellSunglasses.com was born, and how I got my start in the world of wholesale. (*Note: SellSunglasses.com is no longer in business because of reasons that will be revealed in a future post.)

My goal for this blog is to provide honest and accurate information on how a person with average means (both money and knowledge) can get started selling wholesale products. I will only promote products, programs, or services that I honestly think will help my readers. I will not promote anything solely because it’s profitable for me to do so. Wholesale services that sell empty lists and memberships of no real value do not belong here. All I can ask is that if I do promote an affiliate offering that you find useful, you make sure to use the affiliate link so I get a little credit and can afford to keep this blog going. This will always be a website that is run with integrity. If I promote a service, it’s because it offers something unique and I believe you can benefit by using it.

Well that’s it. Stay tuned for more informative posts about buying and selling wholesale products. Hopefully, the SellWholesale.com blog can help you sift through the sea of wholesale scams to find a few gems that result in your profiting from the web.

Best of luck,

Jason Green
SellWholesale.com