Posted by Alex Jackson on July 15, 2016
Picking a lot can be intimidating if it’s your first time don’t feel bad or get overwhelmed, sometimes seasoned veterans of liquidation merchandise have a difficult time finding lots that work for their business. There are a lot of variables to consider and a ton of lots to choose from in many different categories, it can be difficult to know where to start. Below are just a few helpful pointers on deciding on what type of merchandise you want to sell and how to select what works best for your business.
1. Play to your strengths- So you want to start selling liquidation merchandise but you don’t know what exactly to sell yet. It’s a cliché I know, but play to your strengths sell merchandise you are already familiar with and knowledgeable about. Are you nuts about shoes and can tell a Ferragamo heel from a Yves Saint Laurent heel blindfolded? Then you should probably be selling shoes. Playing to your strengths gives you that leg up from the start that you need to succeed if you are already familiar with the brands and styles. You know what they are worth and what you can sell them for, because you own them you know what you paid and how much people are willing to pay for these items.
2. Condition, Condition, Condition- This is probably the second hurdle that most sellers have to overcome, do you want near pristine condition goods for resale or do you want to take a shot on a good looking customer return condition lot. This one depends a lot on what and where you plan to sell these goods. Are you retailing online or via a brick and mortar or even at yard sales or flea markets certain types of items work better depending on the sales environment. With internet it depends on the website, with Amazon shelf pull condition is the way to go remember these clients expect the best and will return quickly any items no matter how minor a defect. Ebay and Poshmark again we would recommend shelf pull but customer returns can also be an option. With these sites customers are used to looking at both new and used goods a blouse with a security tag hole and no tags can easily be sold on either site just be careful to list any and all condition issues with the item. Are you a brick and mortar? Well then again you can go either route shelf pull or customer return but know your clientele a posh boutique should probably avoid potentially damaged customer return goods while a second hand store looking to offer a mix of new goods can do quite well with customer return goods. Do you load up your car every Friday and Saturday night to do flea markets? If so you probably know well that flea market shoppers are looking for REALLY good deals and this may be just the place for an inexpensive customer return lot.
3. Utilize Fox Liquidations search tools- so you know what you want and in what condition, now how to find it. We have some very useful tools and site features to narrow down your search. Start with our wholesale lot filter search the category and condition of the merchandise you are looking for maybe select by locations closest to you this will help keep your shipping costs to a minimum. Create alerts for yourself, that search you just performed simply click on save this search as alert to receive an email alert whenever we are adding new lots that fits this search.
4. Work with the numbers- are you the analytical type that loves numbers and percentages? Good we got you covered as well. All lots list MSRP and average cost per unit but did you know that you can also search by lowest unit price, highest unit price, lowest % of retail, highest % of retail, lowest lot price, highest lot price, lowest retail and finally highest retail price with our wholesale lot filter. Find some deals and steals by working the numbers.
5. Drill down into the manifest- Spend some time reviewing the manifest and dissect the items in the lot. If the item has the buy this item button click on it and see what the current retail price is on Amazon. Maybe do a search on eBay for recent sales history of brands within the lot giving you a better idea of what the items are actually selling for and how much you can potentially profit. Looking for lots heavy with a few specific brands? Check out the summary table right below the manifest this is a fast and easy way to figure out the percentage of brands you want that are contained in the lot.
6. Go with your gut- still can’t decide? Narrowed it down to a few lots but can’t make up your mind between them? You ran the numbers on the items checked the prices and still cannot decide? Well then go with your gut if you have done the legwork and narrowed it down to just a few lots then probably they are all good options for your business so you can’t go wrong.
7.In time look to diversify- Say you are up and running and business is doing well but you want to branch out a bit and explore other categories. Diversification is a great strategy but keep in mind that you should branch out into categories that complement your existing product mix. Selling designer clothing? Maybe get an accessories lot to add to the mix. Seasonal demand lots are also a great way to mix things up maybe a swimwear lot in early spring or an accessories lot heavy with gloves and scarves in early fall winter.
You have the tools and information right at your fingertips learn to use them remember the only bad decision you can make is an uninformed decision.