Posted by Alex Jackson on March 15, 2019
The brand obsession, we tackled the subject previously and talked about how to move past the single label hunt and instead look at the bigger picture of what liquidation has to offer. Now we want to look at another common reseller pitfall that goes hand in hand with the brand obsession, and that trap is the depth over breadth approach to buying and reselling liquidation.
We get this quite a lot, resellers looking to buy a single product but 500 pieces of that same product. This approach is putting inventory depth before breadth of selection and while at first glance it may seem logical, try to think about it this way. I want you to shut your eyes and picture your closest. Mentally picture your clothes closet at home and tell me what you see? Just how many different styles, colors, brands, and types of clothing do you have in it? A few hundred or more? Various brands, multiple colors, and styles? Of course! A well-rounded wardrobe should have a wide variety of items to choose from to suit any occasion. Now picture this closet instead with multiples of A single identical item. Bit boring to say the least? Sure it makes getting dressed every day A lot easier but a whole lot less interesting. Imagine this closet is your store, a shopping customer, in a physical or virtual store will realize fairly quickly that there’s only one item for them to purchase here and if that one item is not for them, just move on. This depth approach may bring that bit of advice about not putting all your eggs in one basket to mind but there is a certain undeniable appeal to this approach, and this is where the trap is hidden. It’s appealing because it seems easy, list it once and you are done, now sit back and wait for the sales. The problem is you can wait and wait for the sales for a long time especially if you’re stuck with hundreds of identical products and it’s not the right product for your business. The depth approach when dealing with liquidation merchandise is best suited for inexpensive commodity items. Even with some of the most in-demand commodity items you still need to be careful, there’s always a risk of getting pulled into a price battle and then having to sacrifice precious margin. Worse yet what if the product demand suddenly dry’s up overnight? It could be a seasonal change, or simply consumer tastes have shifted, and now you’re stuck with a mound of goods that no one wants. That easy sale just turned into a long slow slog to the price bottom, and there’s still no guarantee that you will be able to sell your inventory successfully.
If you want to achieve consistent sales growth when selling liquidation merchandise focus instead on the breadth of selection rather than the depth, now which of these two scenario’s sounds better to you? You could have one hundred units of an item that sells two units per day or… One hundred different items that average 0.25 sales per day. That’s two sales versus 25 sales per day, now which one sounds better to you? The breadth of selection strategy is a far more reliable and effective approach to your long-term sales growth, and this is Foxliquidation’s specialty. We have a broad range of lots with a diverse mix of goods that will pique your client's interest and keep them coming back for more. This approach is especially effective when selling on the market places such eBay or Amazon.
Now purchase lot(s) with a good mix and get busy listing your inventory. The sooner you start the sooner you will build financial freedom and realize all your dreams.