Posted by Alex Jackson on December 29, 2017
Now that we are nearing the end of 2017, let’s pause and reflect for a moment on the past year. It’s been a pretty good year for the U.S. economy. With record low unemployment and skyrocketing consumer confidence we have seen some real spending frenzies not experienced for some time this holiday season. According to a report released by Mastercard this week retail sales in the all-important 4th quarter grew by 4.9% overall, the largest year over year increase since 2011. Internet retail posted some impressive numbers as well, with sales jumping nearly 20% over 2016. What this means for sellers like you is steady and continued sales increase.
It’s important to understand that a healthy economy also means strong demand throughout the entire year, so you do not have to rely on Holiday season sales to keep your business profitable. What we are saying is, don’t plan on a slow down after the holidays. Remember there are a lot of shoppers now armed with gift cards, clients looking to exchange unwanted gifts or just those folks that need a perfect gift for themselves that they didn’t get this holiday season.
Are you a born pessimist? You may be thinking, well this party’s not going to last! With reselling liquidation, there’s only two states of your sales steady and strong. Liquidation is profitable no matter the state of the economy.
Consumer goods like clothing and accessories are essentially recession proof. Consumers while they may cut back on certain high dollar items during an economic slowdown will always need staples like apparel and experienced sellers understand this. What pros who specialize in liquidation merchandise also understand is that a downturn is a great opportunity to expand their business. When the economy is bumpy consumers start paying more and more attention to that price tag making your liquidated goods even more appealing. In the event of economic downturn, most costumers will look for deals on eBay and Amazon as opposed to traditional high cost retailers. If you are a seller on these market places and resell liquidation merchandise, you are set to profit regardless of the economic cycle. What can we expect in 2018? My crystal ball is on the fritz right now, but I think it’s a pretty safe bet that the strong consumer confidence we experienced this year is going nowhere. Best of all you are prepared no matter what the future brings because you are in the recession proof business of selling liquidation.