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Tips for Selling Merchandise Online

Thursday, November 4th, 2010

Tips for Selling Merchandise Online

  • Take advantage of 3rd party websites like Amazon.com or eBay. They have a loyal customer base, lots of website traffic, built-in payment methods, seller and buyer protection plans and more. If you’re just starting out, considering selling on one of those sites until you build some credibility and branch out into your own stand-alone website.

  • Source from lots of suppliers. Even if you find 2 or 3 that you particularly enjoy working with, it doesn’t hurt to have a good contact book of wholesale suppliers you could potentially work with. If one is out of stock on the product line you carry, be sure you can source this product from somewhere else so you don’t have a service interruption for your customers and so you don’t have to scramble to find new product.
  • Research your market. Check out what other items like the ones you are listing are selling for and try to find a competitive edge. If you can lower your item by a few dollars or offer free shipping, you will make yourself stand out and drive the customers to your store instead of someone else’s. Don’t just base your selling price on your purchase price. See what others are doing and do better.
  • Don’t be afraid to buy larger lots and liquidate. Many online sellers are afraid to get their hands on larger loads of merchandise for fear of the space it will take up, the time it will take to sort through it all and what to do with any unwanted items. There are tons of liquidation services available out there to move unwanted inventory, and the money you will save overall by purchasing larger lots at a time will put you ahead of the game.
  • Make sure your service is impeccable. There are hundreds of sellers on the internet carrying very similar products at very similar prices. If you prices are good but your service doesn’t follow, customers may be inclined to go to your competition who might charge a little more but provides better service, faster shipping times, etc. Make sure you answer customer inquiries quickly, get orders out the door fast and keep an open line of communication with your buyers.

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Tips for Reselling Merchandise

Friday, October 8th, 2010

Starting out in the retail sales business? Check out these hints and tips to help you get started!

Tips for Reselling Merchandise

  • BE CREATIVE! Retail doesn’t have to be just in a store, or just at a flea market, or just online. When purchasing liquidated merchandise, you will often find yourself with a wide variety of items within any given lot. Some of the items may be high value or branded, while others may be of lower value or potentially damaged. Maximize your sales by tailoring HOW you resell items according to WHAT you are reselling. If you have a flea market stand, consider selling lower value items there and saving the higher ticket items for online sales. You can start a small e-commerce website or sell those higher value items on eBay or Craigslist. In general, you will be able to get more out of those higher items if you sell them online rather than at a flea market.

  • Be realistic in your expectations. Many people who start out in this business expect to at least double their money on every lot they purchase. This is simply unrealistic when dealing with liquidated merchandise. While it CAN happen, it is also a fact that not every purchase will even be profitable! In the long-run, this can be a very profitable business but set realistic expectations for yourself and plan accordingly when you find yourself unable to source new goods because profit margins are not what you had anticipated. Start small, test the waters and build your way up.
  • Be flexible. Not everything will work in every market. Take the time to understand your customer base and cater to their needs. You may be selling a particular type of item that does very well. Keep sourcing that item but consider bringing in complementary items to boost your sales. For example, if you sell a lot of shoes, consider purchasing other accessories like handbags or belts, that customers will pick up at the same time. Conversely, if you are selling items that are not moving as quickly as they should, liquidate them.
  • Use slow-moving inventory as freebies or giveaways. If you are stuck with, for example, a few hundred pieces of a t-shirt with a particular design on it that is just not selling well, consider giving away a free t-shirt for every $X amount your customers spend with you. This works no matter what your resale channel is. Retail buyers love freebies so use them to your advantage!
  • If you have a physical store or flea market stand (this is easier to do with a physical location than online), stock up on impulse items. Impulse items are goods that are usually found near the checkout counter, that customers pick up without thinking while they are waiting in line. Small items make the best impulse buys– consider cosmetics, DVDs, personal care accessories, hair accessories, electronic accessories or other such items. You can either hang them on a slat wall or dump them in a bin near your checkout counter or section of your store/swap meet stand and let those items raise your average invoice amount!
  • Give your customers purchasing incentives in the form of promotions. Excite them with schemes like “Buy 2 and get the 3rd one 1/2 off” or “Buy 2 and get 1 Free!” This is not only a great way to increase your average sale but also a great way to move unwanted or slow-moving inventory and make room for new things.
  • Research the items you are selling. You know what you’re paying for the items but you don’t always know what they’re actually WORTH. Instead of just sticking a price tag on them that “sounds” like a price you’d be happy with, take some time to research what the items originally sold for. This will help you price them accordingly and you can also use the original retail price as an incentive to your customer. “Originally $149 – Now only $49!” for instance. Often times retailers just count the number of items they received in a lot, to calculate their desired return on investment without factoring in what the goods are actually WORTH. Chances are you’ll be able to make a higher profit margin by taking the time to research.

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Q&A With a Prospective Customer

Thursday, September 30th, 2010

Question:

I am looking to get into reselling liquidated products. If i bought into your company, I would hope for minimal damaged goods, as all I could do is sell for scrap at that point, and I’m not sure i could make a profit.

Can you tell me what would be my best bet on investing $250 or so, as to my possible profit? i may be able to move some of the nicer items on local channels or eBay. It really boils down to what percentage of the items are no longer usable.

Answer:

Thank you for your message.

Let me first ask you a few questions-

  1. Have you resold consumer goods before?
  2. What resale channels do you plan on using? You mentioned eBay — is that it is do you sell at flea markets, yard sales, discount store or in another way?
  3. Where are you located? (This will determining your shipping costs and what products may be most appropriate for you).


It is true that a lot of our product is salvage/customer returns and will contain an unknown percentage of damaged items. When an item is damaged it doesn’t mean it has to be sold for scrap – many times it is just one component that is damaged or missing, or it is out of box but otherwise usable. That said, occasionally yes, you will have items that are indeed scrap-worthy or throw-away items.

I urge you to read this section of our website that outlines what to expect when purchasing customer returns versus overstocks: http://www.viatrading.com/category.jhtm?cid=453

We do however, have quite a large selection of NEW OVERSTOCK items  - items that were once on the shelves of a store but that were removed at the end of the season, or items that were discontinued, etc. In most cases these items are damage-free, although they may come with retail or “clearance” stickers on them that are usually easily removable and do not lower the resale value of the product.

Most of the new overstock items we have are in the categories of clothing, shoes, cosmetics, some general merchandise, accessories and electronic accessories. You can click on this link to see all the products on our website that are considered new overstock (much less risky purchases than potentially damaged customer returns): http://www.viatrading.com/category.jhtm?cid=124

We also have a section on our website dedicated to items that you can purchase for an investment of less than $250. These include some general merchandise, cosmetics and electronic accessories. See them here: http://www.viatrading.com/category.jhtm?cid=121

This is what I recommend: send us some more information about your experience with reselling merchandise and tell us how/where you plan to resell the items.

Based on that, we will be able to make recommendations of appropriate products that will sell well in your market and that will present the least risk until you build some capital.

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What to Expect when Buying Shelf Pulled Merchandise

Thursday, September 16th, 2010

What are some things to expect when buying shelf pulled merchandise?

Shelf pull merchandise typically refers to items that have been used as displays on store shelves, and then liquidated at the end of the season, or when the store needed to make room for new stock to be displayed. Shelf pulls can include new items, tester items or out of box shelf samples.

While most will be in good selling condition, they may have some or all of the following characteristics:

  • Items may have price tags/retail or discount stickers on them
  • May show signs of handling
  • May be defaced/de-labeled (inner labels or tags removed to prevent return to the store)
  • A percentage of the items may be out of box or in open boxes
  • May include a percentage of expired or short-dated goods.

When purchasing such wholesale lots, here are some things you should think about:

  1. Be prepared to take the time to sort through the items and divide the 100% retail-ready items from the ones that need some work. You will be able to begin selling retail-ready items immediately, and save the ones that need work for a little bit later when you have time to work them. At first glance you may panic when you see a box full of items with pink 50% discount stickers on them but once you break it down one piece at a time, you will find that your lot looks a lot better than you may initially have thought.
  2. Remove stickers from certain items if you deem it necessary. You may need to use a blade to help you remove stickers without residue, or use “Goo Gone” or other adhesive removers to make the task easier.
  3. In many cases it can work in your favor to leave discounted or sale stickers on the merchandise. Often times items will come with marked down retail stickers- for example, an item that originally sold at the store for $80 may be marked down to $53. If you purchase it for $10, you can easily resell it to your customer for $20 or $25. Leave the original retail AND the marked-down sticker on the item to demonstrate to your customer just how much of a discount he is receiving off of the item’s original value!
  4. Though some lots may be advertised as overstock or shelf pulls in good condition, it is common to expect a percentage of items that are expired, short-dated (due to expire soon), or otherwise no longer sellable as “NEW”. Large retail stores liquidate these items by the hundreds of thousands of pieces at a time, and lots are often warehoused for several months before they make their way into your hands.  While liquidators and wholesale companies often do their best to sort through the items and include only the good ones, be prepared to have a percentage of throwaway items that are out of date or no longer sellable. If you are purchasing from a well-priced wholesaler, the price you pay for the items should be low enough that despite any less-than-new items, you should still be able to make a handsome profit.
  5. Make sure to read descriptions thoroughly before purchasing merchandise you have not seen in person! In most cases, wholesalers will give you as much information as they can about the lots they have for sale. If any percentage of the items in a lot are expected to be in expired or damaged condition, an honest wholesaler will tell you so in the description of the goods. Don’t hesitate to ask about this when making contact with a company before you purchase. Wholesalers want to protect themselves and in the majority of cases will not intentionally mislead buyers.
  6. Don’t let these things turn you off! There is a lot of money to be made in significantly discounted shelf pull lots. Be prepared to put in a little bit of time and creativity (though much less time than if you were purchasing customer returns), and you will see the fruits of your labor contribute directly to the profits you make.

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Insights for Wholesale Merchandise Brokers: Things you need to know

Thursday, September 9th, 2010

INSIGHTS FOR WHOLESALE MERCHANDISE BROKERS

No matter what your resale channel is, there are certain things you should look for in a supplier such as reliability, good customer service, a consistent flow of product and competitive pricing. However, depending on your particular resale channel – as in Midwestern Wholesale’s case of Dropshipping/Brokering – there are more particular things to keep in mind while setting up your business and deciding which companies you will be sourcing your products from.

Here are some valuable insights for all looking to start or grow their own dropshipping business.

  • Always research a potential supplier. Look at their reputation within the indsutry. Read up on what others have said about them on forums, testimonials on the supplier’s own website and other sources. You need to find a reliable source of product, and a supplier who will be willing to work with you in the event that one of your customers is not fully satisfied with a purchase. Check out our blog to see an article about questions you should ask a potential supplier.
  • Try to keep your markups low. If your customers can search the internet and find the products you are selling at a price significantly lower than you are offering, there won’t be much incentive for them to buy from you. Brokers generally make their profits on volume rather than on individual sales. Your return per individual order might be small but your profits will grow as you build lasting relationships with your customers and they place repeat orders with you.

  • Use several resale channels. Whether you have your own wholesale website or not, the more resale channels you use, the better your chances of moving more product. Take advantage of large online marketplaces like eBay, Craigslist, Amazon, Liquidation.com and such sites to list your wholesale lots in multiple places. The more exposure your lots have, the better. Consider selling at a local flea market in your town or setting up yard sales to supplement your sales as needed.

  • Be wary of suppliers who require payment by wire transfer in 100% of cases. Paying for your purchases by Credit Card or Paypal gives you a recourse in case a supplier does not deliver the merchandise. When you do wire money, make sure you’ve established a trusting relationship with a company as some dishonest suppliers may cash in on your wire and never deliver the goods. Although this is fairly rare, it does happen. Paying by Credit Card or Paypal (even though it occasionally means paying a 3-5% service charge), may avoid headaches in the future. Note that some companies only accept wire transfers for large amounts until a relationship of trust is established with their customers – this goes both ways. Do be flexible, but be vigilant as well. Do your research and know where your money is going.

  • Whenever possible, try to visit your suppliers. Seeing their physical operation and meeting them in person can enhance your understanding of the product to help you advertise it to your own customers more accurately, and can enhance your working relationship with the account managers you deal with regularly. Many companies exhibit at liquidation and wholesale industry trade shows. If you can’t visit them at their locations, consider attenting an industry trade show. Not only will you get to meet your suppliers face to face, but you’ll be in a room with thousands of other companies and may very well find additional suppliers while you’re there.

  • Take into consideration that while starting your own brokering business can seem “easy” and a quick way to make money without ever touching inventory and having to deal with warehousing, shipping and storing merchandise, it does require a lot of research and time on your part. This is a time sensitive industry and your customers will require fast and efficient service. Make sure the suppliers you work with can get you answers to your customers’ questions quickly, and that you make the time to get to emails, questions and complaints quickly to build a good name for your business.

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Posted in Customer of the Month, Resources | 6 Comments »

Questions to Ask a New Potential Wholesale Supplier

Tuesday, August 24th, 2010

When looking for a company to source merchandise from, it is important to do your research, know as much as you can about the business and how they operate, and be aware ahead of time of all purchasing procedures they employ.

The following checklist contains a sample of questions to ask when researching new suppliers. Make a phone call or send them an email asking them the following, and then review the answers you get from all your prospective suppliers to select the one(s) you prefer.

1) Please describe the condition of the goods I have expressed interest in

2) Do you broker the merchandise or is it warehoused in your own facility?

3) Can I visit your facility/warehouse to visually inspect the products?

4) Can you please give me a few customer references with phone numbers?

5) Do you have a refund policy? If so, what is it?

6) Do you have a return policy? If so, what is it?

7) What is your physical address? (it’s always a good idea to run the address through Google to make sure it is an actual warehouse location, if you want to know whether they warehouse their own goods or if you are dealing with a broker operating out of his/her house or apartment)

Other steps you can take to ensure you are dealing with a reputable business:

1) Verify them on the Better Business Bureau website

2) Check www.ripoffreport.com for any buyer complaints. Ripoffreport.com also allows companies to respond to complaints. Take those into consideration as well. It is impossible to please every customer but if a company demonstrates that an effort was made to fix an unsatisfactory situation, this should tell you something about the way they work.

3) Check industry forums for complaints or testimonials

Inspired by “Wholesale Liquidations Exposed” 2010 Edition

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Another Resale Channel: Liquidation Events!

Monday, August 23rd, 2010

In the past, we’ve talked about the types of resale channels available to sellers of liquidation merchandise and customer return products. If you missed the blog entry, check out this section of our website that describes resale channels: http://www.viatrading.com/category.jhtm?cid=465

Another way to resell liquidation merchandise is through Liquidation Events!

What are liquidation events?

Liquidation events, also known as liquidation sales events, are special one-day-only sales that you organize in a conference hall, hotel meeting room, warehouse, retail space or outdoor location where customers are invited to purchase liquidation merchandise for a LIMITED TIME ONLY!

Liquidation sales events work best with a sense of excitement and urgency: “Open today only for 8 hours!” This creates a sense of urgency for your buyers who will come in, rush around to shop and buy as many items as they can in the shortest amount of time possible, and call their friends/family/neighbors to come take advantage of the deals before the day is over.

How do you create excitement and urgency?

- Put a clock in a visible area where everyone can see it. Get a countdown clock if possible, that counts down from the moment you open until the time your sale is set to end.

- Arrange line dividers or safety cones to encourage customers to form a line before the doors open.

- Use marketing techniques that encourage urgency like: “Total liquidation!” “Warehouse Clean-Out” “Pricing at 80-90% OFF Retail!” “Doors open at 8 am and close at 5 pm!”

- Encourage people to buy quickly and without thinking. Set up your sale so that items in each area are all priced the same. For example “Everything on this rack $5!” If buyers do not have to calculate how much things cost and how much they can spend, they are likely to purchase more. A customer who walks in with $50 to spend will immediately look for 10 items rather than look at the selling price on each tag. This also saves you the hassle of labeling each item with a different price.

What other things should I keep in mind?

- Make sure you have enough people to help you if lines form at the cash register. The less customers have to wait in line, the better.

- Know your area and what sells best there. If you live in a town with a higher population of teenagers, make sure you purchase Junior’s clothing and accessories, or items that speak to the younger generation. The same applies if you live in a town with a higher population of elderly folk, or other populations.

- Advertise!! Use facebook and social media sites. Hand out flyers. Email your friends and family. Put up posters in your area advertising the sale. Use cheap yet effective means of advertising to get the word out.

Inspired by “Wholesale Liquidations Exposed” 2010 Revised Edition

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Wholesale Buying Tip #1

Friday, August 20th, 2010

Wholesale buying tip #1: Start small! While you can save money by shipping multiple lots at one time, start slow to be sure you’re investing in the right merchandise for you. Get one or two pallets or case packs to test out the waters. Find a supplier near you where you can go pick up if possible to save on shipping, and slowly grow your purchases with your sales.

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How Do I Obtain a California Reseller’s Permit?

Tuesday, October 27th, 2009

You do no need any kind of permit to purchase merchandise from Via Trading. We sell to individuals and business alike– the only restriction is that you must purchase wholesale (minimum order 1 case, pallet, load or truckload).

However, in order to resell merchandise legally in the state of California, you must have a reseller’s permit.

A reseller’s permit also allows you to purchase merchandise tax free (at the time of purchase) within California. Residents of California who do not have a reseller’s permit are subject to 9.75% Sales Tax at the time of purchase.

You must obtain a seller’s permit if you:

  • Are engaged in business in California
  • Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail
  • Will make sales for temporary period, normally lasting no longer than 30 days at one or more locations (e.g. fireworks booth, Christmas tree lots, garage sale)

The requirement to obtain a seller’s permit applies to:

  • Individuals
  • Partnerships
  • Corporations
  • Organizations
  • Husband/wife Co-ownership
  • LLP’s
  • LLC’s

Both wholesalers and retailers must apply for a seller’s permit.

You can register in person for a reseller’s permit, and permits can usually be issued the same day.

You can also register by mail. You can obtain an application by calling 800-400-7115, or by visiting the California Board of Equilization at www.boe.ca.gov.

Obtaining a reseller’s permit is free, easy and fast!

You can access all the phone numbers of the Board of Equilization offices in California by clicking here: http://www.boe.ca.gov/info/phone.htm

Register In Person

You may register for a seller’s permit in person at one of the Board of Equilzation’s field offices. Permits can usually be issued the same day and help in completing the application is available. Special information packets with the appropriate registration application for specific businesses are available.

Register by Mail

You can get an application for a seller’s permit mailed to you by calling 800-400-7115. If you are calling from outside of the 48 contiguous states, please call 916-445-6362.

Representatives are available to assist you with permit questions Monday through Friday (except State holidays) from 8:00 A.M. to 5:00 P.M. A registration packet will be mailed to you within 24 hours. You will generally receive your permit approximately two weeks after we have received your completed application. Incomplete applications may delay the process.

From TDD phones: 800-735-2929
From voice phones: 800-735-2922

Applications Available On-Line

BOE 400 SPA, Seller’s Permit Application is available for printing from the Board of Equilzation website. The completed application can be delivered in person or mailed to any of their field offices.

Additional information is available on the tax rules for specific business, types of sales, or charges associated with sales for a number of businesses. The regulations relating to sales and use tax are also available.

Information above collected from the California Board of Equilization Website (http://www.boe.ca.gov). Copyright 2006 State of California

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What is an OCL Shipment?

Tuesday, October 27th, 2009

Ocean Container shipments are primarily used to ship large loads of merchandise outside of the United States and neighboring countries. OCL shipments costs are typically flat and based on original and destination of the goods.

Ocean shipments can take 14-60 days to reach their destination.

Containers are usually available in 2 sizes: 20’ and 40’. Sometimes, 45’ containers can also be available.

Hand-loading goods for container shipments is a good way to maximize the space used in the container, and lower your relative shipping costs. Hand-loading the merchandise can sometimes increase the capacity of the container by 2 or 3, as opposed to loading the merchandise on pallets.

Not all goods can be hand-loaded , however you should be aware of this and request it when possible.

Be aware of any unusual restrictions when importing goods- for example: wooden pallets are not allowed to be imported into Australia.

Be sure to communicate these restrictions to your vendor in case they are not aware of them.

container pallets

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