How to Start a Home-Based Wholesale Closeout Business
When a business goes under or simply fails to move certain merchandise, the owner often turns to wholesale liquidators to sell off his goods at a highly discounted price. Liquidators then sell these lots to savvy resellers who know how to make a profit. If you're looking to start a home-based closeout business, you'll need to find a reputable closeout liquidator who can provide you with sellable goods.
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Instructions
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Contact your county clerk to obtain a reseller or sales tax permit. This will allow you to purchase goods from wholesale suppliers.
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Create an account with eBay.com and other auction sites. Once you've established an account, you can search or peruse completed sales to get an idea of what various products sell for. Start by searching for items that you're interested in selling, such as baby clothes or sporting goods. Expand your search to include all areas of interest. Take note of popular items.
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Find wholesale closeout suppliers for your home-based business. Buying in a bulk can be a risky venture. To avoid ending up with a lot of goods that won't sell, look for closeout suppliers that offer a money-back guarantee or detailed information about the types of products within each lot. Look for reputable companies that are registered with the Better Business Bureau (BBB) or that have been around for a while. Purchase conservatively until you're comfortable with your supplier and your ability to resell the goods. When making your purchase, always use a credit card that offers buyer protection. In the event that a closeout supplier sells you junk or items are not as described, you can file a chargeback. Keep in mind that many items will be sold AS IS. In that case, you have no recourse. Thoroughly review the lot listing so you understand what you're getting into. TDW Liquidation (see Resources) is a BBB accredited business that offers detailed descriptions of each pallet.
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Elect to have the liquidator drop ship the goods to your customers, if you don't have room in your home to store your inventory. Otherwise, convert a garage or spare room to store inventory. Then purchase business insurance to protect the inventory in the event someone breaks into your home.
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Purchase a website for your home-based closeout business. See Resources for a list of highly rated web hosting companies.
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Design your website using search engine optimization (SEO). If you are unfamiliar with SEO, ask a knowledgeable friend or hire someone to help you get your store up to speed. You can learn SEO for free online. Your web host might also be able to help you. Detail an About Me page, a Returns and Shipping page and a Privacy page. Then begin populating your website with product images, prices and descriptions. You may be able to use stock photos obtained from your supplier. Otherwise, take high quality images in good lighting for your site.
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Advertise your site using Google Adwords or Yahoo credits. Enter forums or blogs related to the products you sell. Start a blog and link back to your site.
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Tips & Warnings
Sell on eBay.com.
Sell your goods at flea markets.
