You cant really get an estimated profit on liquidations. Its a risk industry just like any other sales margin. You are buying either customer returns, Overstocks and In store items that never sold.
From my experience its a 4 out of 5 Profit margin. 4 Pallets out of 5 bring nice profits. But the good thing about pallet purchases is that the risk is small. If you actually loose money on a pallet its generally very small.
The highest profit pallets are generally the highest priced pallets. The way most retailers that have custom pallet orders set it up where the best of the best is charged a higher price. I tend to only buy $2500 pallets for my own sales so many of my pallets are loaded with more high end products and less work inspecting and replacing parts on a unit.
Lower cost pallets have more work associated but are still very profitable. And lower cost pallets is where I originally started.
People with experience in this industry make very good money. Pallets always have been and will always be the best way to make money online on places like ebay and amazon sites.
This may be a silly question and if it has already been answered I am sorry. I recently purchased a pallet from H & J Closeouts. What would you say is the first step to figure out how to price everything in order to focus on making a profilt from the pallet? More specifically I paid roughly $600 including shipping and trying to figure out the best direction to go with pricing each piece. Would it be benefical to list certain items as bulk?
Thanks in advance,
Selling in bulk can also be effective if you have enough of the same items.
I know we have a client that is buying 1000 pieces of make up, repackaging into smaller lots, unsure as to what size, then listing them on liquidation.com for auction.
I haven't asked how they are doing because it's none of my business, but they are buying 1000 units every two weeks, so I'm assuming they are doing OK....lol
As a general rule, listing individual items is more time consuming, more expensive, but it should get you a better price at the end of the day.
Selling in bulk is quicker, cheaper and while the margin may be down on individual listings, that can be more than made up for with turnover if you are moving stock.
If your load is mixed products, I would suggest listing individual units would be the best way to go.
Patience can really pay off.
It's funny how some think that if the product doesn't sell the week it's listed, then it's not going to sell.
Take a regular offline business, if they threw products out that didn't sell the moment they put them on the shelf, they wouldn't hold many products at all!
An online shop works like an offline shop, with different customers entering your site every day of every week, and while it would be nice to have the right customer turn up the moment you list a product, not always gonna happen so give yourself a chance.
If you cut and run too early, others will benefit from your losses, and that's not good business.
Very True , i have normally 3,000 items up but only sell 200-300 items a week on avg ..keep most in my ebay store and still turn good profit only selling 5-10% each week of what i have listed ...you can have 2500 items in your store and it is only $75 a month for the listings .I have stuff sometimes sit for months before selling , it just depends on how much money you have to work with .
Another great thing is flea market, almost anything sells there. I have heard that you shouldnt just depend on eBay to sell items, and its true. Craigslist and other auctions sites are great. Flea markets are generally inexpensive to get a booth at and there are alot of great things that sell. My husband and I used to go to one here all the time,but it closed down, now I am the one looking for one to go to to sell things. My hope is to get a booth at one that is open 6 days a week and list things online-hopefully if I get a laptop. Right now I do not have a lot of money to throw into this, but I do agree partially that it does take money to make money....but creativity can get you a long way too. Just because someone cant afford a pallet now, doesnt mean they wont work their way up to them...I know that jimmy has said he started with liquidation.com clothing lots...we all have to start somewhere. no one start instantly making, generating, of supplying thousands of dollars of merchandise...