Liquidation sales—when a store is going out of business or restructuring its inventory—can be a great place for acquiring diverse products. You can find websites selling returned items from major retailers such as Walmart, Amazon and Target. While the sellers don’t test each product and therefore cannot guarantee that the items work, the margins should be high enough to take the gamble as a flipper. Before you bid on these lots, keep in mind that there will be shipping costs.
Bulk buys such as Alibaba are different. Committing to one item could be highly profitable, but it limits your listing availability and could fill your storage space quickly. So think hard about buying these, but reap the benefits when you get it right. When buying on Alibaba, you could commit to hundreds of the same type of item. This could mean you’ll need to keep these items for a while unless you are a master of the sales arbitrage. On a liquidation website, you are buying returned, salvaged or refurbished item lots. The item lots can have various types of items, in various conditions with different resale values. A lot can have several brands of items. For example, one lot purchase could contain five Under Armor polos, three Champion sweatshirts and 14 private-label shirts with a total value of $100. There are shipping costs, and sites like Liquidation can give you a quote with estimated tax as well.