Health & Beauty Liquidation
In 2015, Ulta sold $3.72 billion of beauty products. Other leaders in the industry also made billions. Today, health and beauty can be a profitable niche.
But the competition can be fierce. If you want to make money, you should consider getting into health and beauty liquidation. The major companies make so much money that they have no need for products that don’t sell. So, they sell them at a low cost to resellers. You can turn around and sell their liquidated items to those who want name-brand beauty products at an affordable price.
Why Should You Consider Health and Beauty Liquidation?
When big businesses have products that don’t sell, they take them off the shelves. Then, they replace them with products that do sell. This leaves them with their assets tied up and taking up space in a storage facility.
In an effort to turn the merchandise back into an asset they can use, retailers often sell their beauty and health products in bulk. You can get beauty and health liquidation products by the box, pallet, or truckload. Typically, the cost of the merchandise is much less than the retail value. They lower their prices to sell the goods quickly.
The low cost of this type of liquidation is one of the reasons to become involved in the industry. However, it’s not the only reason. There are multiple benefits to starting or growing your health and beauty business with liquidated merchandise.
Get Your Own Niche
If you don’t already have a niche for your business, it’s time you got one. Without one, you have no direction. You have too many products and no way of narrowing down your customer base.
With a niche, you don’t have this problem. You can easily determine your target audience. Then, you can gather information about them and fine tune your marketing. In all of your advertising efforts, you can focus on selling your products to interested customers.
Another benefit of having a niche is the authority it gives you. If you specialize in selling a certain product, you will become an expert. By selling mostly health and beauty products, you can become a knowledgeable source for paying customers. People will come to you with their questions and their product needs.
Save Money on Inventory
Usually, you can find great deals through beauty and health liquidation. Because the industry is so popular, there is a lot of inventory turnover. Retailers are eager to turn their unsold products into easy money. Once they have that money, they can replace their old items with new ones.
While all liquidation merchandise come at a discounted price, this is particularly true of health and beauty. If you browse through the available lots, you can find some great deals. You can get large lots at a low cost.
Get a High Volume of Inventory
Whether you have a physical store or an online platform, finding the right inventory can take time. There are several ways in which you can find products to resell. Unfortunately, some of those methods are more time consuming than others.
For instance, you could go to a flea market and browse the booths for affordable health and beauty items. This is a tedious task that doesn’t always involve success. You could look for hours and only find one or two viable products.
When you buy make-up or other health and beauty items on liquidation, you can get a high volume of inventory in one purchase. You could get hundreds or even thousands of products at the click of a button. Once you process them, you can put them up for sale. You might have enough inventory to stock your business for months.
Take Advantage of a Trending Industry
If you browse social media platforms, you’ll see an abundance of posts about health and beauty. This gives you a major advantage. When it comes to advertising your business and your products, social media can do most of the work.
You can use the fact that health and beauty is trending to give your business a boost. With Facebook advertising, Instagram posts, and YouTube videos, you can put your products out there. You have products that people want, and the trending nature of the industry can be your secret to success.
What Should You Do with Your Beauty and Health Liquidation Merchandise?
Unlike other industries, reselling does not require previous experience. Although experience helps you make better decisions, it’s not a requirement. Almost anyone can become a reseller.
That said, there are a few things you should know. If you’ve never purchased liquidation merchandise, you probably have a few questions. You might not know about your options for profiting from your inventory.
There are several ways in which you can run a resale business. For one, you could have a physical store. This involves renting or owning a store, and stocking it with your health and beauty inventory. Although you can make money with this method, it’s challenging. The high cost of a physical location can eat into your profits. In addition to paying your rent, you also have to pay for employees and other necessities.
Another option is to sell at different locations. You could look for local flea markets, farmer’s markets, and garage sales. Typically, these venues charge a small fee that covers everything. If you choose the right venue, you could have hundreds or thousands of customers browsing your products.
The simplest option of them all is to sell your inventory online. In 2016, 8.1% of all North American retail sales were made through e-commerce. Every year, people are spending more money on online products.
An online store is easy to set up. If you don’t want your own website, you can sell your products through auction websites. But creating your own website is also an option, and is easy and affordable. Usually, you pay a monthly fee or a percentage of your sales. Once you receive inventory, you can take photos and list the products. Then, people can immediately view and buy the products.
Ways to Improve Your Reselling Business
Once you decide to become a reseller, you have some work to do. If you want to be successful, you should follow the following tips:
1. Get Certified
As a reseller, you don’t need to have a special certification. However, you can get a resale certificate. The document lets other businesses and customers know that you are professional. Additionally, it may be a requirement for you to buy merchandise. Some companies require you to have a certificate before you can make a purchase.
A certification is also important for tax reasons. As a reseller, you have an obligation to pay taxes. Having your certification can prevent tax trouble.
It’s relatively simple to obtain your resale certificate. The process varies depending on your state. Typically, you need to apply for the certificate in your business’ home state.
2. Get Products from Reliable Businesses
One of the first business decisions you need to make is how to source your products. If you decide to buy liquidated merchandise, you have many options. A quick internet search will give you access to auction sites, liquidators, and more.
Although there are many options for sourcing your inventory, those options aren’t always viable. There are scammers and unreliable businesses. Before you decide on a supplier, do your research. Find out about hidden charges and company policies.
If possible, avoid working with a new company. Instead, look for someone who has at least ten years of experience in the industry. You should also look for a company that has made millions of dollars in sales.
3. Determine Your Expenses
Compared to other industries, reselling health and beauty products don’t require much overhead. However, there are expenses you should know about.
Before you start buying inventory, go through all of your expenses. Determine how much money you will need to keep your business running. As you do the math, factor in any costs for web platforms, inventory storage, and marketing.
You should also figure out the cost of buying inventory. If you buy merchandise from an auction-based website, proceed with caution. Your bid may not be the final selling price. In addition to paying for your bid, you also need to pay for shipping. There may be a buyer’s premium on your bid. This could significantly raise the cost of your inventory.
It’s crucial that you avoid overpaying for your merchandise. If you pay too much, you won’t make a profit. You also might not have enough money to keep your business running.
When you buy products, keep in mind that they won’t sell right away. While health and beauty products tend to sell quickly, some inventory can remain in your store for days, weeks, or months. You should have enough money to sustain your business while you attempt to sell your merchandise.
4. Work with Quality Products
Cheaper isn’t always better. If you’re buying health and beauty liquidation for an incredibly low price, there could be a reason for it. The products might be poorly made or seriously damaged.
Before buying inventory, consider the source. Is the lot from store returns? How much damage do the products have? If you’re working with a reputable company, you should have access to a description of the lot. Read the description several times and be sure to fully understand the details.
In the health and beauty industry, you have to also consider a product’s expiration date. Much like food, health and beauty products expire. If your customers are buying expired products from you, they won’t be satisfied.
Therefore, you should process your lots with care. Determine the expiration date of each item. If you find something that is already expired or expires soon, you should think twice before trying to sell it.
5. Be Prepared
No matter how eager you might be to start off on your career as a reseller, you need to proceed with caution. While being successful is possible, it requires some planning. You should avoid buying inventory before you have a firm business plan.
This means figuring out all the logistics of buying and selling your products. For instance, you should know where you want to source your products and what platform you will use to sell it. If you plan on selling through your own website, you should build your website before you buy inventory.
You also need to determine where you will store your inventory. Although health and beauty products tend to be small, they still take up space. If you plan on buying truckloads of products, you need to have a place to store them. You should plan ahead and know where you will keep your inventory and how much it will cost.
What Should You Know About Trends in Health and Beauty?
As technology has developed, the world of liquidation has evolved. E-commerce has made big businesses more eager to get rid of their unsold products. Furthermore, it has made it easier for them to sell those products.
Technology has also made it easier for people to take advantage of liquidated merchandise. Practically anyone can buy liquidated products. Furthermore, there are many platforms available to those who want to sell those products.
Although liquidation as a whole has changed, the health and beauty industry has also changed. These days, people are looking for a quick fix. Beauty products that deliver immediate results are highly desired. Natural skin care products are also quite popular.
If you can target some of the latest trends in the industry, you can improve your chances of success. And while buying liquidated merchandise doesn’t always let you be on the cutting edge of the industry, you never know what products will be available.
Working with Merchandize Liquidators
There’s no need for you to fight to find good inventory. Instead of combing through products or fighting to win auctions, you can work with Merchandize Liquidators. Our company has been around for more than a decade, and we pride ourselves on giving our clients the products they need to make sales.
If you’re ready to buy some health and beauty products, check out our website. We have a wide selection of health and beauty products.
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