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There is money to be made in liquidation products, but you have to know exactly how to find those. So here is the list of tips and strategies.Â
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Know Whom You Are Buying From
You can find plenty of liquidation sources online, but there is only a percentage of those who are really reliable. Now, you can go to the liquidation dot com and see what they have. And most likely from time to time, you can find a good deal, but my advice is to stay away from returns as often there are issues with those products. You can even find smaller local store and see if they have any liquidation to unload. This is a great way to get that product at 10-20% of wholesale.Â
But if you are going to search for sources online, you have to find if they are really legitimate. The legit company should have the necessary contact information. If you cannot get a hold of them by phone, RED FLAG, move onto the next one.Â
If you do get a hold of them, great, get to know them a little better and test their customer service. You can always ask for customer references. Remember, if something sounds too good to be true, it is.
Know what you are Buying!
Before you actually make the purchase you have to know exactly what you are getting. It happened to me few times that I got the wrong order. It was delayed, and a whole mess.  Know the details on how much it cost for shipping, and what is the price per item. Get the details in writing, so you have something to fall back on!
Your supplier should provide you with a manifest - an itemized list of the goods on the pallet you'll be receiving. Try to get the liquidation price, the wholesale price, and the retail.Â
Know the Real Product Cost Before you buy!
This is kind of a warning. You have to consider not only the purchase cost, but if the items you are getting have to be repaired, you have to count that in. Or cleaned, re packaged. Count those in as well!
Test the Product Market
First find out what is the lowest selling price, the shipping cost, the specifications and look at the auction sites to see if the product is selling. This will help you determine the profit you can expect.
Don't overlook the slow moving products!
Some of the low cost slow moving products can really help increase your profit margin. For example, if you are selling kids puzzles, you can over sell for additional 10-20% of the initial price if you include the bonus. Keep that in mind! Â
Just in the case you did not know, the Wordwide Brands Directory has plenty of liquidators who are screened and approved by their company, so you know you are working with the real company.Â
