Trash or Treasure — How To Source And Sell Used Products
by Leeia Ladipoh on February 25th, 2008
If you are looking for the right business market and merchandise, you may be looking at the new items market - items other businesses aren’t already selling. But the buy-in rates for new, innovative products are often high. What if you could make similar profits by selling used items?
There are a number of ways to get into business selling used products. The old adage “one man’s trash is another man’s treasure” certainly is true.
If you’re considering selling used products, you need to first decide what type of business you are going to run.
Online or Brick-And-Mortar Business?
Online businesses require little to no start up funds - and you can control the inventory and sales from your own home. That means no storefront or warehouse expenses for your new business.
Saving money is crucial for most new businesses, especially in the first few years of operation.
Online Options - eBay or Creating Your Own Shop
With eBay, you can create your own eBay store and sell your items there, or just go through individual auctions. You can also do a little research to see what other similar items have sold for.
The other option is to open your own online shop. While many people worry that an online shop for used items won’t do well, they don’t take into account the impact of used goods. Not only are they generally cheaper, but growing concerns of the impact of waste on the planet has many people - and other businesses - looking for “recycled” goods.
If you want to open a real shop, you will need substantially more financing to be able to afford the storefront, along with the other supplies needed to set up your business.
Sourcing Used Items
There are a number of places to look for used items to sell in your new store.
Garage Sales - Garage sales are great places to purchase individual items. If you like variety, this is a good chance to find a number of different items. You likely won’t be at a loss to find garage sales, but you have to remember that not every garage sale will have a gem for you to resell, so you may spend a lot of time looking for merchandise.
Thrift Stores - Thrift stores are larger venues and often have many more items crammed into one space. Generally, thrift stores have already sorted the ‘junk’ out of old garage sale items, and only stock items that have some continuing worth.
While you will have a wider selection at a thrift store, these finds are also going to cost more than garage sale items.
Personal Storage Sales - Most cities have numerous personal storage facilities all over town. These are garage-sized spaces that people rent out to keep their extra stuff in. But if they don’t pay the bill, the facility auctions off their belongings.
If you come across an auction like this, you could hit paydirt, especially if the space is filled with things that can be turned around and sold.
eBay Auctions - Many auctions on eBay are wholesale auctions - large lots of items someone is trying to get rid of. While some of these are lots of 100 of the same item, others are large boxes of clothes, toys, and other things that could take on new life in a resale store.
When you’re buying items from an eBay auction, you need to carefully read the product’s description and any guarantees to make sure you get what you purchase. You should also take the shipping cost into account, as it can make a big difference in your per-item price.
Liquidation Sales - There are a number of companies that have the job of taking items that have been broken or returned to stores and getting rid of them. They usually sell these in large lots of a pallet or more. If you know what you are looking for, you can get a good deal.
Keep in mind that shipping costs will probably be high and need to be factored into your final cost. Also, try to get a full manifest so you can see exactly what you will get and determine whether you will be able to sell all the pieces of the package.
There is a large used item market out there, much of it waiting to be tapped. The key is to know what you want to sell, how you want to sell it, and how to source it.