Have you ever considered working for yourself? There are many advantages to being a small business owner, from personal freedom to upward financial mobility. Folks with the tendency to become burnt out in corporate America can find the flexibility that self-employment allows to be an inspiring and empowering alternative to the 9-5 grind.
If you’ve dreamt of making the leap, it might be time to consider the options available to you, including one very specific business model in the e-commerce world: liquidation.
The challenges of launching your own business can be daunting, but the rewards can be endless. According to the US Small Business Administration, some 30 million small businesses are currently registered in the country, and in an era when more young professionals are looking for new ways to secure stability and obtain financial freedom, those numbers are likely to rise even higher.
There is a large-scale movement encouraging people to start side hustles, even if they don’t completely give up their day job. There has never been a more promising or lucrative time to make the switch from the corporate space to the coworking space.
How liquidation businesses work
Liquidation is often thought to be a negative term. Often, it is the process of how a company’s time is brought to an end. When a business goes bankrupt, a court-appointed liquidator will collect and realize the company’s assets by turning them into cash.
However, in the context of big businesses like Walmart, they’ll often liquidate returned merchandise simply because it can no longer be sold as new. On that scale, selling the merchandise off to wholesalers is cheaper than attempting to restock it. In either case, the liquidated merchandise is typically in good condition.
This is where liquidation business owners often step in. They routinely keep their eyes on liquidation wholesalers and auction sites where wholesale items are listed in bulk, and jump to purchase them at significantly lowered rates.
How it works in the retail space
Once, not too long ago, brick and mortar retail companies had a monopoly on the retail industry. Even fifteen years ago, the liquidation business on auction sites like eBay were still very new and faced little-to-no competition, especially if they sold very niche items.
As you might have guessed, the situation is different now. Ecommerce has changed the game radically. The competition has gotten much fiercer with countless Instagram boutiques, Etsy sellers, and Amazon wholesalers fighting for the best sales.
How to get started
You will quickly learn that you are far from the only one tracking down the best bulk deals, and you may have to sacrifice a few early-morning hours sitting in front of your laptop clicking “bid now” when you’d rather be cozy in bed. But the rewards of a liquidation business are enormous, and with a little momentum, you can start bringing in profits.
Those with time to spare, a keen eye for bargains, and an understanding of upselling can do very well in this space. Sellers with excellent customer service, fair prices, and memorable branding do exceedingly well. You can purchase wholesale merchandise from platforms such as Direct Liquidation.
One of the best things about jumping into this world is the fact that it requires only a little startup capital, and a lot of free time. Stay-at-home moms, seasonal employees, and students can all make a living through liquidation sales.