T Nation

Liquidation Re-Selling


#1

I've been looking into doing liquidation re-selling. You just buy stuff in bulk off of liquidation auctions, like http://www.liquidation.com/
And then, you re-sell it by single item on E-bay or something. Seems pretty simple. Is there a catch? Anybody have experience in this?

Nintendo Wii, for example:

Selling on Ebay for ~$210. + shipping with 14 bids.
http://cgi.ebay.com/Nintendo-Wii-Game-Console-System_W0QQitemZ290348368156QQcmdZViewItemQQptZVideo_Games?hash=item439a1c811c&_trksid=p3286.c0.m14

Selling on Liquidation, 7 Wii consoles for $675. 11 hours left. Let's say it gets up to $800. That's $114. a piece.

Let's say shipping it to buyers costs $10.
And the buyer's premium is 5%, so that's $40. from me.
So..

210-114= $96.
96x7 = $672.
762 - 40 - 7(10) = $652 profit from moving 7 Wiis.

The page says that the MSRP is "$2k +" I don't know how they got that.

Am I seeing this correctly or what?

Thank you,


#2

I’ll give you 7-9 days before I see this post:

"Guys, it happened again! The ONE time I left my car unlocked I had 6 brand new Wii console’s in my passenger seat with a sign that said “6 new Wii consoles, estimated worth $675, P.S. My car door is unlocked” and someone fucking stole them! WHAT THE FUCK!?

What should I do? Call the cops? I know who did it but I don’t know if I should call the cops. And just so you know, I deal with guys MUCH higher up in the food chain than this. I’ve dealt with my fair share of PS3 bandits, so don’t try to tell me I’m an amateur."


#3

[quote]waylanderxx wrote:
I’ll give you 7-9 days before I see this post:

"Guys, it happened again! The ONE time I left my car unlocked I had 6 brand new Wii console’s in my passenger seat with a sign that said “6 new Wii consoles, estimated worth $675, P.S. My car door is unlocked” and someone fucking stole them! WHAT THE FUCK!?

What should I do? Call the cops? I know who did it but I don’t know if I should call the cops. And just so you know, I deal with guys MUCH higher up in the food chain than this. I’ve dealt with my fair share of PS3 bandits, so don’t try to tell me I’m an amateur."[/quote]

Whatever, I got all my shit back and extra for the trouble. Make fun of me all you want.

That’s not what this thread is for. Anybody know about that sort of stuff?


#4

That actually looks pretty plausible and interesting. Make sure it says returned or new, and not salvage. Now i’m considering doing this with some of those tv’s.


#5

That’s certainly smarter than selling drugs. Because it doesn’t get you killed.


#6

Start small to minimize risk.


#7

[quote]waylanderxx wrote:
I’ll give you 7-9 days before I see this post:

"Guys, it happened again! The ONE time I left my car unlocked I had 6 brand new Wii console’s in my passenger seat with a sign that said “6 new Wii consoles, estimated worth $675, P.S. My car door is unlocked” and someone fucking stole them! WHAT THE FUCK!?

What should I do? Call the cops? I know who did it but I don’t know if I should call the cops. And just so you know, I deal with guys MUCH higher up in the food chain than this. I’ve dealt with my fair share of PS3 bandits, so don’t try to tell me I’m an amateur."[/quote]

haha good one!

OP i wouldn’t do that…I’ve been selling stuff on craigslist over the summer months and although craigslist isnt nearly as large as ebay, its still a good example…electronic stuff is hard to sell especially if its an older version…maybe try placing a few “fake” ads on craigslist and see what kind of responses you get?


#8

[quote]Artem wrote:
Anybody know about that sort of stuff?
[/quote]

First things first. If and when you start moving more than a couple of units a month you are going to need to be smart about this.

Most states still have their head up their ass about sales tax, and how to apply it on internet transactions. You need to do some research as to the rules of your state, and the other 49. Because if Alaska requires the seller (you) to remit the sales tax, and you don’t, you could end up owing a fuck load of money.

Now each state will have separate rules as to establishing a nexus. You may have to file in each of the 50 states you sell over a certain amount in. Again, do your research.

Go get a copy of Quickbooks, and play around with it to learn how to use it. Pen and paper accounting systems typically won’t hold up well in court, and quickbooks is barely any better, but more respectable than you writing shit on rolling papers.

Find a small accounting firm or a lawyer to prepare your tax returns. (CPA’s are normally much cheaper, and less annoying. ;)) And if you start moving serious units, form an S Corp and set up your own site, and get more than one supplier.


#9

Drop Shipping:

1.) You open an Internet Store, with a shopping cart and the ability to accept credit cards.

2.) You find a distributor who is willing to DROP SHIP the products you want to sell. The best place on the Internet for this is www.WorldwideBrands.com. This is our website, the home of OneSource, recognized as the best source for legitimate Wholesale Suppliers on the Internet.

3.) You establish an account as a retailer with the Drop Ship Wholesale Supplier.

4.) You receive images and descriptions of the products you want to sell from the Drop Shipper and post them on your Internet Store.

5.) A customer surfs into your Internet Store, and falls in love with a product that you have priced at, say, $80. They purchase the item with their credit card. Your Store charges their credit card $80 plus your shipping fee.

6.) You turn around and email the order to your Drop Shipper, along with the customerâ??s name and address.

7.) The Drop Shipper sends the product directly to your customer, with YOUR Storeâ??s name on the package.

8.) The Drop Shipper charges you the wholesale price of, say, $45.00, plus shipping.

9.) Your customer gets a cool product from your store shipped to their door, and they tell all their friends about you, and you make even more money.

There you have it. You just made a $35.00 profit on one item. You didnâ??t have to buy a whole bunch of the product and keep it in your warehouse, hoping you would sell it. You didnâ??t have to pay to have it shipped to you, and then pay to ship it to your customer. All you did was send an email to your Drop Ship Wholesale Supplier.

Sounds like fun, but what does the wholesaler need the store for then? They do all the work. All the store does is deal with customers. Couldn’t the wholesaler just do that themselves and make more money?


#10

[quote]aeyogi wrote:
Start small to minimize risk.[/quote]

X2

I have a buddy who tried to do what you’re talking about, he bought $10k worth of misc fitness equipment. He bid on 5 palets of stuff, turns out it was 5 giant shipping crates of crap, there were a few nice things a gym quality treadmill, a power rack, 5000 jock straps and smith machine. He has 40x60 building that was filled with broken exercise bikes, treadmills busted dumbbells and a ton of other misc stuff, some cool most crap. Took him 2 years to sell it all on eBay. He did make about $5k but he busted ass getting rid of it. Start small.

BTW He sold the jocks to a couple high schools.


#11

he just doesnt quit.


#12

[quote]countingbeans wrote:
Artem wrote:
Anybody know about that sort of stuff?

First things first. If and when you start moving more than a couple of units a month you are going to need to be smart about this.

Most states still have their head up their ass about sales tax, and how to apply it on internet transactions. You need to do some research as to the rules of your state, and the other 49. Because if Alaska requires the seller (you) to remit the sales tax, and you don’t, you could end up owing a fuck load of money.

Now each state will have separate rules as to establishing a nexus. You may have to file in each of the 50 states you sell over a certain amount in. Again, do your research.

Go get a copy of Quickbooks, and play around with it to learn how to use it. Pen and paper accounting systems typically won’t hold up well in court, and quickbooks is barely any better, but more respectable than you writing shit on rolling papers.

Find a small accounting firm or a lawyer to prepare your tax returns. (CPA’s are normally much cheaper, and less annoying. ;)) And if you start moving serious units, form an S Corp and set up your own site, and get more than one supplier.[/quote]

This is good advice. Me and a few buddies started an S Corp a few years ago and I bought Quickbooks and tried to do our taxes. I did alright but I had no training in Quickbooks. It all turned out alright, but believe me it is worth it to either take the classes or hire a bookkeeper. I mean, cmon, you can find one for pretty cheap, and I hope your time is worth more than $10 - $12 /hr.


#13

[quote]waylanderxx wrote:
I’ll give you 7-9 days before I see this post:

"Guys, it happened again! The ONE time I left my car unlocked I had 6 brand new Wii console’s in my passenger seat with a sign that said “6 new Wii consoles, estimated worth $675, P.S. My car door is unlocked” and someone fucking stole them! WHAT THE FUCK!?

What should I do? Call the cops? I know who did it but I don’t know if I should call the cops. And just so you know, I deal with guys MUCH higher up in the food chain than this. I’ve dealt with my fair share of PS3 bandits, so don’t try to tell me I’m an amateur."[/quote]

Lol, so true.


#14

[quote]Artem wrote:
I’ve been looking into doing liquidation re-selling. You just buy stuff in bulk off of liquidation auctions, like http://www.liquidation.com/
And then, you re-sell it by single item on E-bay or something. Seems pretty simple. Is there a catch? Anybody have experience in this?

Nintendo Wii, for example:

Selling on Ebay for ~$210. + shipping with 14 bids.
http://cgi.ebay.com/Nintendo-Wii-Game-Console-System_W0QQitemZ290348368156QQcmdZViewItemQQptZVideo_Games?hash=item439a1c811c&_trksid=p3286.c0.m14

Selling on Liquidation, 7 Wii consoles for $675. 11 hours left. Let’s say it gets up to $800. That’s $114. a piece.

Let’s say shipping it to buyers costs $10.
And the buyer’s premium is 5%, so that’s $40. from me.
So…

210-114= $96.
96x7 = $672.
762 - 40 - 7(10) = $652 profit from moving 7 Wiis.

The page says that the MSRP is “$2k +” I don’t know how they got that.

Am I seeing this correctly or what?

Thank you,

[/quote]

I know people that do that. One of them claims to make 1k every weekend selling the stuff at flee markets. he hasn’t done it via computer yet.