If you want to know how to buy "liquidated" (=mega-discounted and huge ROI potential) merchandise locally to you, then "Liquidation Gold" by Jessica Larrew is a must-read.
See, in 2012, Jessica's Amazon sales grossed close to the $300,000 mark. That TOWERS over my puny-by-comparison $136K. How is she doing it? Jessica specializes in sourcing Liquidated products purchased in her area, with net ROIs of 200% and up (that's not a typo).
I know Jessica personally - she is one of the smartest, 'keep it simple' Amazon selling experts I know.
Below is my full review of her newest e-book "Liquidation Gold".
Jessica started selling items on eBay in 2005, as she puts it "just for fun money". After being unexpectedly laid off in 2009 and deciding that she never wanted to work for anyone else again, she managed to replace her income by selling on eBay and then decided to try Amazon. Since then, as she says, she has never looked back. She replaced her husband's income while only working part-time and looking after their new baby. In November 2011 her husband left his job and joined in what is now the family business.
"Liquidation Gold" describes how to get liquidated inventory locally for reselling on Amazon. Her whole business model is now built around buying liquidation items, very inexpensively and in bulk.
The book describes how to find liquidation stores, what types of products they carry and where to start. It explains that stocks change quite literally from week to week since they will be whatever the retail outlets want to get rid of, for whatever reason, at any given time. This may be because the stock is at the end of season, or is slow moving or may just be approaching the expiration date, which is often the case. When a store like Safeway has stock they want to dispose of they will sell it to a salvage dealer who in turn will break it into smaller packages and sell to the liquidation stores. Even so, the liquidation stores will buy by the pallet or even a truckload which means they are getting huge discounts.
Jessica explains that you should start by buying items with which you are familiar, so that you have some idea of the prices. If you have no idea about pet products, then leave them alone. Your first move should be to check for expiration dates, in particular in health, beauty and grocery items. It is easy to get caught out; one lot of 300 items of sunblock that retailed at $25 each was on offer for 50 cents, but turned out to have expired two years previously! In general the book suggests you do not buy items with damaged or torn packaging.
You can also buy by the pallet from the surplus dealers who sell to the liquidation stores so that you are getting the items for even less. However, when you buy a pallet it will often be a mixed lot and you may find that there is inventory which for one reason or another you cannot sell. If you can buy a pallet of all the same items then that is a different matter.
Liquidation Gold also warns against buying store brands. People are unlikely to search on Amazon for Walmart shampoo, but they will search for the brand they like - L'Oreal for example. If you are unsure if an item will sell and don't want to buy a huge quantity then it is suggested that you buy a few to do a test. However, you do have to accept that the stock of a liquidation store, by its' very nature, will change almost from one day to the next, so that the rest of the pallet may have sold out by the time you return.
Although Jessica's business does tend to concentrate on health and beauty and grocery products, she has a section at the end of the book covering toys, household goods and baby products. There is also a reference section where you can join Jessica's private Facebook group, subscribe to her blog or even have one-on-one coaching from Jessica herself.
Throughout the book Jessica gives many examples of purchases she has made, including some the 'bad' products she bought.
Liquidation Gold is full of tips from a very experienced Amazon seller. You can't go far wrong learning from someone earning into the high six figures a year.
My Bonus Money-Back Guarantee. I know Jessica - she's a stand up, honest person and she is offering a 30-day money back guarantee for 'Liquidation Gold'. (I make a small amount of $ for the referral.)
Let me know how Jessica''s ideas are working for your business.