Wholesale Liquidation Resources (Surplus) for eBay Sellers

You have started an online business selling merchandise on ebay and now you are looking for a place to get good deals wholesale - true Wholesale Liquidation Resources.  You wonder how in the world someone can purchase something so cheap and sell it for even cheaper and still make a profit on ebay after paying all the fees and so forth.  Or, better yet, you wonder how in the world name brand products that claim to be "new" are being sold on ebay for cheaper than you can buy it for "wholesale".

If you are feeling this way than this lens is for you.  I have uncovered hundreds of legit wholesale liquidation resources for ebay sellers.  Often times there is a food chain in this business.  The idea is to get to the top of the food chain and be able to make large bulk purchases as you will get your best prices at the top.  However, you have to be careful becaue there is a reason for wholesale liquidation resources existing.  Many times it is the end of a product cycle so if you purchase too many items you could experience a falling knife syndrome if you can't get rid of the stuff fast enough.  

Warning:  Do not purchase a Gob of merchandise of the same item unless you can sell it quickly.  If you buy the item for $1.00 and there are 10,000 for sale and you look on ebay and it is selling for $14.99 you will think you hit the motherlode.. and you may have for about a week.   Than, you get so exited and think you found some source no one else knows about and suddenly you are the wholesale liquidation resources guru of ebay and your retirement ship has just landed.  WRONG.   You better find a buyer to purchase that stuff from you in bulk and plan on making a buck or two per item if you have a huge amount of them and get rid of them.  WHY?  Because there are going to be several other folks just like you buying another 100 - 10,000 of these same items and listing them on ebay. 

 Suddenly you notice your sales have dwindled and instead of selling 9 of your items every day you are only selling one.. or none.. ummm... what's going on?  (hopefully you did not purchase this from a credit card, equity loan or your life savings)..  humm.. oooh.. looks like others are not selling this same item for $2.99 and $2.00 shipping.... so, you lower your price to $2.99 and than another guy steps up and he is a $1.50.. figuring he'll make his on the shipping. so, you increase your shipping fee to do the same and lower your price to $1.25 and suddenly....his are no longer selling and yours are not either but you still have 9,000 of them in your garage...  why aren't they selling...? 

Well.. I am not really sure but my theory is that the pent up demand for the item has been satisfied and now we are 1 month into the cycle of the new product it replaced hitting the retail store shelves for $24.99 and there is news about it all over the internet and in print media and quite frankly most people will drift over to the newer product with more bells and whistles.. After all isn't that why they are liquidating the old stuff cause the public will demand the new model? 

So, it is better to purchase smaller amount lower on the food chain and make a smaller spread and get out of the product quickly and move on to looking for another product.

I think this is a good approach but there is also another approach and that is dealing directly with wholesale dropshippers whereby you don't have to even inventory the product.  But, that is for another lesson.