How to Become a Bulk Reseller
If bulk reselling sounds good to you, don’t get out your checkbook just yet. First, make sure you have the physical space and systems to cope with an onslaught of not-yet-sold merchandise. If you intend to store all that stuff somewhere in your house, make sure you (and the rest of your family) can really spare the room. If you have to rent additional warehouse space, factor those costs into your business plan. And wherever you decide to put it, make sure you’re up to the task of tracking all those individual items.
When you’re making this size of upfront commitment, it pays to do a little research beforehand. You need to identify a product category that is robust, that has a high sell-through rate, and that has some legs. That means searching through recent eBay auctions or investing in an online research tool, such as those offered by Ándale (http://www.andale.com). You’ll want to track sales trends (by category) over time, close rates (the percentage of auctions that end with a successful bid), and final selling prices. Use that information to guide you toward the types of merchandise to purchase.
Then it’s a matter of seeking out the best bargains. Hit all the closeout and liquidation sites, and see what’s available. Bide your time; there’s no reason to jump at the first offer you see. Avoid the temptation to shop by price only. The lowest price isn’t always the best deal; sometimes you’ll have more success selling slightly higher-priced (and more well-known) merchandise. In other words, become a savvy shopper. When it comes to bulk reselling, the better you are as a buyer, the more successful you’ll be as a seller.