Posted by Alex Jackson on 17th May 2019
Did you ever get this bit of travel advice? If you're going overseas stick a few bills in your shoes, just in case you lose your wallet or your purse? It’s good advice always have a backup! yea maybe not so great for the eventual recipient of those bills that smell like feet but still overall it's a good idea. This blog entry is not about tips for traveling abroad, it’s about investing in footwear for resale, right now before things start to get crazy and that could happen at any minute in 2019.
Now our regular reseller readers will probably remember that we talked about the looming trade war with China last year and how resellers of liquidation merchandise can actually benefit in the form of increased sales and higher profit margins. How does this work? Simple the replacement cost of new merchandise from China is dramatically higher because of the imposed tariff, your goods were not hit by the tariff putting you at a competitive advantage. Now since our blog entry back in the spring of 2018 the first few rounds of tariffs have been imposed and so far, Joe and Jane Consumer have for the most part dodged the tariff bullet. The tariffs have so far mostly hit categories like consumer electronics and furniture, these may sting a bit but it’s still manageable, but the next round could hurt a whole lot more.
What’s next up on the China tariff docket? Clothing, sporting goods, accessories and Footwear and this last one Is the really big deal. Why? Well, clothing is a concern certainly, but not quite as big as footwear because 72% of all footwear coming into the U.S. in 2017 came from China. It’s simply a staggering volume of footwear and it could take years if not decades for the trade war to be amicably resolved or more likely for manufacturers to relocate from China and start-up production in another tariff-free country. Your average pair of sneakers, heels, and boots are about to get a 25% price increase and retailers are not going to be taking this bullet for Joe and Jane Consumer this time. What this means for resellers is simple, you are poised to start raking in some big profits on liquidated footwear but keep in mind if you dawdle you could run the risk of being shut out. Remember there is only a finite supply of tariff-free footwear in the secondary marketplace today and this will very quickly dry up as soon as these new tariffs go into effect. Smart sellers will start loading up now for the critical third and fourth quarters of 2019 and will be the ones best positioned to reap the financial rewards. Foxliquidation.com has a wide array of footwear available now in both women’s and men’s sneakers, shoes and boots and we have some exclusive unpublished offers available right now that are too good to pass on, contact us at email@example.com for more details on this limited time offer you cannot refuse.