Every year over half a million businesses are created in the United States. Approximately one third of these start-ups are retail businesses. A large portion of these businesses will focus on the “Secondary Market”. This marketplace offers great advantages and high rewards but you need to be well prepared. Finding the right supplier to source products from is critical.
Secondary Market products consist of Closeouts, Surplus Goods, Customer Returns, Liquidated Items, and any product that is not sold after its initial manufacture. Many companies specialize in secondary market purchases and reselling. Resellers might experience some level of unsellable merchandise in these types of wholesale orders but not always. Retailers will be hard pressed to find a cheaper source of merchandise than secondary market items and these products can be a great way to turn a profit.
Working within the Secondary Market is more than knowing just your product niche; you also have to know how to sell products with a variety of quality conditions. Getting creative is essential for moving not only the good products but also the less desirable ones. A good strategy is to start small by purchasing a few pallets and working your way up to buying full truckloads. If buying smaller loads is an obstacle, you might need to consider your source. Remember, where you get your products is just as important as what you get, especially when sourcing surplus goods.
To gain additional insight into this industry we spoke with Michael Lawrence of DirectLiquidation.com. His company represents one of the fastest growing marketplaces for Surplus Merchandise.