In the United States, people spent $27.5 billion on small home appliances in 2018. That number was up by 9% from the previous year. Although the housewares industry has always been popular, it’s reaching new levels of profitability.
Due to the rapid growth of the industry, there’s also a growth in housewares liquidation. Large businesses don’t want shelf-pulls taking up storage space, so they sell them. The same is true of returns and clearance items.
If you want to take advantage of the growing industry, you should consider buying liquidated houseware stock. Merchandize Liquidators has the merchandise you need to get started.
What is Housewares Liquidation?
There are many types of liquidation. In fact, you can buy almost anything on liquidation. When companies buy products, they don’t always sell them. Or, they might sell them but have the products come back to the store as returns.
Big businesses don’t want to take the time to deal with those products. Because they have so much revenue, they see it as a waste of time. They would rather focus on selling products that are trending and flying off the shelves.
However, they also don’t want their money tied up in waste and storage. To turn unsold or returned stock into money, they liquidate. They sell products by the truckload to liquidators. The price you pay for liquidation is often much lower than the MSRP. For that reason, there is a potential for resellers to make a profit.
Housewares liquidation is unique in that it involves numerous household products. The category is quite large and includes all of the following:
- Small appliances
- Pots and pans
- Table settings
If you purchase a pallet or truckload of housewares, you could end up with a good variety of products. This makes it simple to turn a profit.
What are the Benefits of Reselling Housewares?
There are many benefits to buying liquidated housewares merchandise. All of the following are reasons you should consider getting into this type of liquidation:
Find Your Fit
No business should be generic; everyone needs their own niche. If you don’t have much direction, you need to find some. Having your own niche allows you to narrow your marketing focus. Rather than market your products to a general audience, you can market them to the ones who want to buy them.
If you have many types of inventory, you don’t have a target customer. Your demographic is everyone, but you can’t market effectively to everyone. But you can market effectively to a certain demographic. Buying housewares stock makes it easier for you to advertise your business and products to the right people.
Additionally, you get more credibility. You can’t be an expert in everything. For instance, you might sell electronics, make-up, and housewares. It’s unlikely that your customers will view you as an expert in all of those industries. But they might view you as an expert if you only sell housewares.
Reduce Your Spending
One of the biggest expenses associated with owning a retail business is the inventory. The cost of buying products is high. In housewares, this is particularly true. New appliances and bedroom accessories can cost a great deal of money.
However, liquidated housewares are much more affordable. You can find some great deals and save money on your inventory. Because many big businesses are struggling to keep up with the trends in housewares, they are willing to sell their liquidation merchandise for very low prices. You can end up with products well below their retail value.
Get Enough Inventory to Stock Your Store
Finding inventory in other niches can be done in many ways. For instance, you could go to a flea market and find toys or make-up to sell. But housewares aren’t as easy to source. If you’re relying on garage sales, online auctions, and thrift stores, you could end up with used and unsellable inventory.
Finding good inventory usually takes time. But this doesn’t have to be the case. If you buy a pallet or truckload of merchandise, you can stock your store. You don’t need to spend the majority of your time looking for products to sell. Instead, you can put all of your energy into selling the products you already have.
Be a Part of a Trending Niche
The retail industry is always changing. Often, the popularity of niches ebb and flow. However, housewares is an exception. For decades, housewares has been one of the most popular niches in retail.
This is partially due to the fact that people will always have a need for housewares. Regardless of how technology changes, people will always need to decorate their home. It’s also a constant industry because technology has made appliances better. Every few years, people need to buy new appliances to keep up with the latest technology.
What Should You Do with Your Housewares Merchandise?
Today, people are embracing the entrepreneurial spirit. They are looking for a way out of the office, and a way to be their own boss. When you resell liquidated housewares, you can do just that.
Before the internet became popular, reselling was reserved for a handful of big businesses. Unless you had a relationship with a large retailer, you had no way of buying liquidated inventory. However, the internet changed that. Today, almost anyone can go online and find pallets of shelf-pulls or store returns.
It’s also easier to sell the products. Years ago, you needed to sell them in a physical store. But this requires a significant amount of start-up capital. You need money to rent the storefront, set up the shop, and hire employees. And there’s no guarantee that customers will come to visit your store.
Fortunately, technology has changed the way resellers do business. If you buy housewares, you can sell them on an online platform. You could build your own website, sell products through someone else’s website, or auction your products through a platform. You can run your business from a laptop, tablet, or smartphone.
Creating an online presence is easy. Furthermore, getting web traffic tends to be easier than getting foot traffic. Thanks to SEO and other methods of digital marketing, you can get people to your online platform with less effort. The cost of digital marketing tends to be lower than more traditional advertising methods.
Tips for Reselling Housewares
It is true that you can make good money reselling housewares. But as with all businesses, this business doesn’t come easy. By following these tips, you may be able to sell more and worry less:
1. Consider Your Credentials
If you are an accountant or a life coach, you need credentials. Without them, no one will take you seriously. The same is true for resellers. If you don’t have your resale certificate, people don’t have a reason to trust you.
Not having a certificate could prevent you from buying merchandise from some liquidators. It can also keep you from handling your taxes the way they should be handled.
If you want your resale certificate, you should find out about your state’s process for obtaining one. Each state has different rules regarding resale certificates.
2. Do Your Research When Sourcing Products
Your business is only as good as your products. And where you source your products directly affects their quality. Therefore, you should be cautious when sourcing products.
There are many businesses and platforms that sell liquidated housewares. However, they aren’t all legitimate. Some websites prey on people who are new to the industry. Others simply don’t care about their customers. Before you buy from a company, do some research.
You should look at the company’s online ratings, customer testimonials, and experience in the industry. After you do your research, decide whether or not they are trustworthy. You might want to call and speak with a customer service professional. They should be willing to answer any questions you have or to address your concerns.
3. Make a Budget
If you’re interested in selling housewares, you might have some big ticket items to sell. But this means your cost of inventory will be slightly higher than other niches. Before you purchase products, you should figure out your budget.
First, you should determine your monthly expenses. Don’t forget to include the cost of website maintenance, marketing, and other potential fees. You should figure out how much money it takes to keep your business running on a month-to-month basis.
Secondly, you should calculate the cost of your inventory. If you want to buy your products in auctions, you have other expenses. You need to consider the cost of shipping and any auction fees. Usually, those expenses are not included in your bid price.
When you’re looking at inventory, be wary of spending all of your money. Use your budget to remind yourself how much money you need to set aside. Don’t overspend or you could leave yourself in financial distress.
You should remind yourself that you will not sell your housewares as soon as you receive them. Before you can sell them, you need to go through your order and process the products. Then, you need to list each item. This takes time, and it could take even longer for customers to buy your products.
4. Focus on Quality Over Quantity
One of the many benefits of liquidation is the quantity. In one lot, you could have hundreds of products. And while quantity is beneficial, you shouldn’t place quantity over quality. You need to have good products, or your customers won’t return to you. They also won’t recommend you.
When you are looking at merchandise, read the fine print. If you’re buying from an online liquidator, read the description. It should tell you what type of housewares are in the lot. For instance, the lot could be shelf-pulls and store returns. The description can tell you what to expect of the products. It should warn you of physical damage to the items.
It’s unlikely that a whole shipment of liquidated merchandise will be in perfect condition. However, you need merchandise that you can sell. Take the time to look for quality merchandise.
5. Do the Planning in Advance
The easiest way to sell housewares is to have a plan. If you’re new to the world of resale, you need to take things slowly. Prepare a plan that includes every detail of your new business.
For instance, you should decide how you will source your products. You should also explain how you will sell your products. But having it in writing isn’t enough. Prior to buying merchandise, you should make your plan become a reality. Set up your online store and work on building your brand. Figure out how to upload inventory, and you can avoid complications when your first lot of merchandise comes in.
Another important detail to consider is the storage of your housewares. It’s unlikely that your housewares will fit in a small space. Will you keep your merchandise in your home? If not, where will you store it?
The Benefits of Finding a Reputable Source
Although there are many aspects of running a resale business, one of the most significant parts is your source. It all comes down to your inventory. With the right source, you can have enough high-quality inventory to keep your business successful.
After all, your inventory is what brings customers to you. If you want to make money, you need to return customers and positive reviews. And it hinges on your products. By working with a reputable company, you can get the inventory you need to satisfy your customers.
Working with Our Company
You could spend years trying out different companies. However, finding new inventory could be a constant source of stress. You never know what to expect, and a bad shipment could leave you without anything to sell.
Merchandize Liquidators can change that. Having been in the industry for years, we know the importance of giving you honest descriptions. All of our lots have detailed descriptions. If you have any questions about a lot, we encourage you to call our office.
You can get started today by browsing our selection of housewares. The world of housewares liquidation is waiting for you.
Title: Housewares Liquidation | Merchandize Liquidators
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