[quote='wgdudzin']Has anyone bought designer purses from Liquidation.com? or any other liquidation? What was the experience like and what was the profit margin? Thanks in advance!
Wendy
Liquidation.com is a very popular spot to purchase from, but always read the manifest carefully, and even then you can get caught out. Liquidation.com has independent sellers on there moving their stock, and you have to ask yourself why are they using a site like that as a method of disposal, when profits could be higher through other avenues.
What people do is buy in large volume, then they do what is called Cherry Pick. This means they go through the stock purchase, remove the high value items for resale, and then liquidate the lesser value items to create cash flow. What tends to happen on sites like Liquidation.com is smaller resellers are attracted to the lots because they can't afford the big investment for the bulk purchase, and choose the cheaper option.
End result, the seller gets their money back, plus some in most cases with the liquidated stock, while still having all the good stuff to resell and maximise their profit, while the auction winner ends up with a cheap purchase of the not so good stuff, and can then struggle to make a small profit.
It's a simple equation, to make the most profit, you need to buy the biggest load, because that is where the volume discounts are. The smaller the load, you have to be ultra careful of not getting stuck with a Cherry Picked purchase, or no matter how much you paid for it, you could do your rear end.
I'm not saying everything on Liquidation.com is like that, but people seem to forget you are not just dealing with one company here, your are dealing with many resellers, and some may have better quality products than others.
The other point to remember is that companies liquidate stock for all sorts of reasons. Slow moving, customer returns, damaged, over stocked, gone out of business. When you buy from a liquidator, they usually won't just sell you a clean pallet of stock from a business that has closed the doors. They will mix the pallet with stock that has been sourced from across the board, or they would be left selling pallets of complete junk.
About the only time you will ever really be able to buy 100% clean stock is from the actual companies liquidation auction when they close down, before it makes its way to any liquidation company, and is watered down for resale.
Yes-I haven't bought anything from them yet but frequent there site quite a bit. I an't afford the over thousand mark pallets or boxes of goods but my store is run from home and not very big so it actually would work for me. I look up only certain brands and usually try to stick w/ stuff that has 0 or few bids. I get on facebook a lot and ask my friends on their what brands or things they would buy from a website-this gives me an idea of what is in demand. I also have a blog and like previously stated-I don't use eBay a lot but will for certain items as advertisement for my store and possibly a nice way to clear stock if it doesn't eventually sale on my website. Wendy-I've been trying to do ebay and other things for a while and I wish I had SaleHoo then b/c I bet it would have saved me a lot of money. Just research as much as you can, these guys I don't think are going to steer your wrong & ask questions. No questions is a dumb one-better get loads of answers/advice then none at all and regret later. Good luck :)
