In this conversation several members of this forum are discussing the pros and cons of sourcing merchandise to resell on eBay. The following message was left for my wife in a personal mailbox and we thought we would address the questions here on our blog.

“Hi! I posted a reply to your and eBayCoach’s lively discussion. I’d like to find out if you’d be willing to offer some advice to a person in my shoes. In a nutshell, I’m a pretty good business woman and want to grow/develop an online sales business. I’ve read several books on the topic, but just want to understand what a day in the life of a successful ebay seller looks like? Assuming that the seller makes a good salary and isn’t scouting daily for items. Also, how much money will I need to invest in inventory and how much will I need to invest in management systems/staff.

I really appreciate you and any response you might have. Now, if you have any questions about California Real Estate, or Foreclosures, I can answer your questions! HAHA!

Thank you……Meredith”

Before I respond to Meredith’s comments above I want to steer our readers attention to another individual who was involved in this thread and her name is Suzanne Wells. She is affectionately known in several circles as the eBay Coach. Suzanne offers in-depth advice for eBay resellers showing them how to find inventory via garage sales, thrift stores, product coupon redemption and other creative ideas. I strongly encourage our readers to check out her blog a become a faithful eBay Coach follower. Suzanne is also the author of a very successful book titled, Stay-At-Home Mom’s Guide to Successful eBay^® Selling and her blog can be found Here.

Lets move forward with my response to Meredith:

Hello Meredith, allow me to introduce myself…My name is Robert Cyr. You had sent a private message (above) to my wife on the WHAM forum. My wife was involved in a forum thread talking about dropshipping versus sourcing items to resell via thrift stores and garage sales. Both are viable ideas, but Lorie (my wife) was trying to press upon the readers there that spending hours hunting for merchandise to resell can become very tedious.

Let me back up a moment and fill our readers in on what I am talking about. There are great deal of eBay resellers who will find inventory by traveling from thrift store to thrift store looking for items to resell. In addition, sellers will also travel the garage and yard sale circuit looking for items that might fetch a strong dollar on eBay. Many of the items sought for resell are vintage or collectible.

My wife’s intent was to reveal that there is an easier way to source items for resell including dropshipping and purchasing bulk lots of liquidation merchandise.

A great deal of people responded in this thread because many who use the “Scouting” method to source merchandise to resell absolutely love doing what they are doing. They are passionate and get excited about the prospect of finding a rare piece of china or a highly sought after book. Items like this can bring a huge markup on eBay.

There is however a segment of people who cannot spend hour after hour hunting around thrift stores or garage sales, but want to be successful on eBay. Maybe some of these people live in rural areas where shopping for inventory is not an option.

The other negative thing about hunting for eBay merchandise is the fact that you can never be assured a steady supply of merchandise to resell. One week you might find a ton of stuff, while the next week might yield very little.

Now that I have everyone up to speed…I will answer some of your questions:

QUESTION: What does a day in the life of a successful ebay seller look like?

ANSWER: It is all glitz and glamor. I wake up at about 10 and watch TV for hours on end – yeah right! Selling on eBay is harder than most 8 to 5 jobs because you are never “off”. You wear many hats as you are in charge of product sourcing, marketing, shipping and customer satisfaction. You really have to be intent on being in business for yourself as the entrepreneur lifestyle is not for everyone.

QUESTION: How much money will I need to invest in inventory?

ANSWER: Start small. Being successful on eBay is about trend watching, testing the waters and careful research. If you find a source of merchandise from a wholesaler, manufacturer or dropshipper,  make sure you research historical completed auctions to see what a particular item has sold for. Is eBay flooded with this product line? Can you compete with the pricing your have found?   How much stock is available and can you get inventory ongoing? Make small purchases at first and if sales pickup you can buy in bulk at a lower cost per piece.I really think you can start with an investment of $100-$200.

eBay is all about marketing and staying on top of consumer spending trends-

“Robert …..I originally was thinking farmer’s markets and garage sales. My friend put left overs of jeans and shoes “new” she had purchased in my garage sale last year and fared quite well. I am building a business separate from this but saw this as an opportunity to bring in a little cash flow while I’m building my business. I recently left my job to afford myself the time. I think the apparel I just purchased would probably bring in more on Ebay but I haven’t sold anything that way before. I also had the idea of taking a variety of merchandise based on what I get for a good deal and take it to the different time share resorts to the sales reps. I live in Orlando…time share mecca…also I was in the industry for 10 years so I know a lot of reps. My husband took some of the apparel “Marisa K” (shelf Pull) and sold 2 for $80. He is taking more today. I think “new” jeans and designer apparel would do well with these people. People are always selling things at the resorts to the reps…flowers, movies, whatever. I think the new children’ clothes would do well in a garage sale…I live in an upscale neighborhood my clothes (used) always do well. I would like toys as well. Sorry this is so long, I need an editor…Great book by the way…very helpful.

Tracy”

Tracy, thank you for taking the time to share some ideas with us. I think the overall message you have sent in your email really explains the point I have always tried to make: Be creative when trying to resell wholesale liquidation merchandise.

If your intent is not to build a huge business selling shelf pulls and customer returns, but rather make a few extra bucks here and there, I think you are off to a great start!

In review, here are a few ways to make a quick buck after buying a Wholesale pallet of merchandise:

Garage or yard sales

People love to go from home to home in search of a bargain. You can capitalize on this following by running an ad in your local paper and make plenty of visible signs showing potential customers how to find your sale.

Craigslist

Place ads on this free classified network selling wholesale liquidation merchandise. I do not think I have to tell you that this website receives hundreds of thousands of visors each day looking for a bargain. You have the ability to upload pictures just like eBay.

Hold a Resell Party

This is where you get a few girlfriends together and ask them to bring a friend with them to an evening of finger foods at your home. This idea is similar in concept to the Tupperware or Mary Kay events where everyone laughs, eats and buys merchandise. You can use this idea to resell handbags, clothing or just about anything else you can think of.

Trunk Sales

Trunk Sales are very prevalent in the Eastern part of the United States. This is where you pull to the side of the road and open up shop. Before you try this method make sure you meet local ordinances, which might require that you have a permit to operate. This permit is often know as a peddlers license. In my hometown I have come across people selling all kinds of merchandise on the side of the road, most attracting many customers.

Today I want to introduce you to a company called Margolin Shoes & Apparel. You can venture to their website at www.closeoutplace.com.

Margolin Distributes wholesale name brand shoes such as Adidas, Reebok, Fila, Converse, Puma, Skechers, Doc Martens and more at approximately 50% off regular wholesale prices. In addition to shoes and boots, they offer a wholesale selection of NFL, NBA, NCAA, WNBA, MLS, MLB, and NHL licensed team apparel.

I have taken the time to cross reference some of their advertised prices of boots with closed eBay auctions. I was surprised to find Doc Marten boots closing on eBay with several high bids. Take a look at the following PDF files I have put together showing wholesale liquidation pricing from Margolin and then closed eBay auctions for advertised stock:

Wholesale Dr Martens Boots 1
Wholesale Dr Martens Boots 2

Margolin Shoes & Apparel
2701 N Kildare
Chicago IL 60639
773-252.5222

If you are looking for a niche area to specialize in for eBay sales, this company just might work. I would suggest calling and asking a few more questions about setting up a wholesale account and discussing minimum purchases, refund policies and see if you can get a couple of references.

Many of you know I answer questions by email and most of the time turn them into blog posts here at the Closeout Industry. We have helped a few people including Vic and Heather with a few of their product sourcing questions. If you missed those two posts, be sure to check them out.

Behind the scenes I have been talking with a longtime friend who has been planning an apparel Liquidation Sale at a chain hotel. This is a one day selling frenzy where people come by the carloads waiting to give you money! Her first sale was actually today and she has promised to share pictures and I am hopping a little advice for those who might want to hold their own liquidation sale!

Resources & Links from the audio commentary below:

Questions answered for Heather: Part 1 & Part 2

Question answered for Vic: Wholesale Men’s Apparel

Surplus.net new website: TheImasd.com

What the heck is an Event Sale?

Check out the audio portion of this post below:

“I’m new to the liquidation business,  I am opening up a store, in which I have purchased a few pallets,  Can you tell me if I can leave the Original tags on.I have bought some clothes from Erika’s and they show that they are from Sears,My question is do I take the Original tags off?”

Brand protection and defacing is a very important part of reselling liquidation merchandise. If you intend on purchasing overstock, shelf pulls or customer retruns you must adhere to strict guidelines if you are involved in reselling.

The following is taken directly from the salvage agreement you must sign if you intend to purchase wholesale liquidation merchandise from Sears and/or Kmart.

Defacing

Purchaser agrees to also remove or obliterate any and all nomenclature, plates, identification tags, sales tickets, documents, labels, legends, stencil information, manuals, instructions, price tags, or any other materials or information on the packaging, inside the packaging or on Salvage Goods which in any way identify Seller, or any affiliated or related company of Seller with the Salvage Goods, to include, but not be limited to, those marks identified on the attached Exhibit A.

Penalty

If Salvage Goods are discovered for resale in violation of paragraph 6, Purchaser shall be subject to a fine in an amount up to $50,000.00 per occurrence.

Sale of Salvage Goods

Purchaser shall warrant and ensure that primary and all secondary purchasers will not sell Salvage Goods for resale within a fifty (50) mile radius of any Kmart, Sears or affiliated retail store format, to include, but not be limited to, Sears Dealer stores, The Great Indoors and Sears Hardware and Appliance stores. Purchaser shall also warrant and ensure that primary and all secondary purchasers will not sell Sears or Kmart proprietary branded Salvage Goods for resale through catalogs or on the Internet including, but not limited to, auction sites, proprietary websites or email solicitations.

Erika’s Bargain Sales
8685 Scranton
Houston, TX 77075
Phone: 713-910-5414
Fax: 713-910-7799

have personal experience buying from this company and must tell you that if you are reselling in retail store or possibly at flea Markets…you are sure to find fast selling merchandise at Wholesalejewelry.net.

Back a couple of years ago my wife and I would sell novelties and jewelry on the fair and festival circuit traveling up and down Northern California. We bought a lot of merchandise from this company.

If you are looking for wholesale jewelry and novelties I think you will agree that this company has some great deals. Bookmark their website for future wholesale purchases.

Here is his email:

Hi Robert,

“I recently purchased your book Liquidation Secrets. I have a few questions I’m hoping you can answer. I specialize in retailing high end Men’s fashions and so far the best source I’ve been able to find is Macy’s/Federated. Are there any other sources of high end men’s lots I should know about? Second question, I am looking specifically for lots of Levi’s or Guess jeans. Best I’ve been able to find has again been Federated.

Is there any source you know of that sells Levi’s or Guess lots exclusively, ie non-mixed lots? I appreciate any info you can provide.

Regards……Vic”

Here are the links you should bookmark

Offpricebermo.com Wholesale sportswear company founded by Ed Bernard in 1973. Bermo Enterprises is headquartered near Kalamazoo, Michigan, a college town located halfway between Detroit and Chicago.

DLMoffprice.com West Coast supplier of authentic mid to higher end apparel. They allow you to purchase specific sizes and brands that sell best for you and your business. Short Video of From DLM

Bestlabelsonline.com A branch of DLM Offprice, Best Labels allows you to purchase mixed lots online!

Mannysoutlet.com The ever-changing website I talk about in my anser below. Trust me, Manny does get some good stuff in at times, but you must get used to his comical website.

Question Number Two:

“Worldwide Brands is now charging a $299 lifetime membership fee for access to their wholesaler database, which includes liquidation auctions, wholesalers, dropshippers, etc. I’ve looked into Doba, which charges a lot of money to access their wholesalers and products as well. I’m assuming that if I don’t use one of these, the entire burden is on me to find wholesalers willing to dropship, but if I don’t mind spending the money, I could just go ahead and use the database? Is it worth it? I’m thinking of doing a dropshipping business or even an online business with liquidation and shelf pull clothing or cosmetics (from home the cheapest thing to deliver is light stuff. I hope to one day maybe have a storefront for inexpensive apparel, but feel like I would really be competing with Ross, Burlington Coat Factory, all the dollar stores we have here, etc. What would be my niche, baby clothes, high-end, brand-name?”

Links from my audio response:

Not only do you get access to the World Wide Brands database of suppliers, but you will also be provided with your products online selling analysis, demand, competition, advertising, auction pricing and retail pricing! The ecommerce tools and market research alone are worth the membership! You will also have access to over 20 hours of videos and webinars all designed to insure your success!

Take a look at some member testimonials

The first question from Heather is about researching sellers on Liquidation.com:

“On Liquidation.com you cannot find information about the wholesaler because they only list a user name.  Liquidation.com allows you to file a dispute, which they will investigate, but if you do a chargeback on your credit card, you can be kicked out of the system.  So, I’m not sure how I would go about investigating any of the wholesalers there.”

Here are the links I discuss in my audio answer:

Ripoffreport.com – This is an online database that offers a place where disgruntled purchasers can publicly list complaints about different internet merchants. It is always a good idea to check this resource for buyer feedback before you buy on Liquidation.com or from a wholesale liquidator. Trust me, this database has prevented me from purchasing from many companies online. Make sure you bookmark this site.

Complaintsboard.com – Yet another complaint database that you can use when investigating sellers on Liquidation.com or suppliers you are thinking of buying from

Toolhaus.org - This is a great tool to research eBay sellers’ user ID’s. You can also try and search this database for Liquidation.com sellers as there are a few that sell on both venues and use the same user ID

I am sure you have heard people proclaim that you should resell what you are passionate about and as a guy tools and hardware are my expertise! Tools have a great resell value and wholesale truckloads from Orchard Supply not only have tools, but you can find home improvement items, home décor, faucets, small appliances, outdoor tools and much more. Take a look at their website at www.osh.com and you will get a really good idea of the types of items that can be found in pallets.

The great thing about buying wholesale loads from this retailer is simply the price. My source offer pallets for about $100 each and a full truckload around $2000.

Osh is owned by Sears and you will find the Craftsman brand in these particular loads. You must adhere to reselling guidelines and as a matter of fact this might be a good time to review our post about reselling restrictions.

As with any wholesale pallet of customer returns you should understand the inherent risk of receiving items that are broken or missing parts. Some of the loads I have purchased from this retailer have had some heavy damages, but in each case I had no problem realizing a profit from the items that could be salvaged.