Wholesale Closeout Liquidators - Who To Trust in 5 Simple Tips

Several years ago when I was first investigating an eBay business, I bought into a "start-up" type product that was supposed to help me setup my online sales business. One of the "advantages" of using this system was the "Drop Ship" goods from wholesale distributors that I could make a lot of money on... right!! The had liquidated goods, surplus goods, closeout goods and all at great prices... they said.

It took me a few months to catch on. They were charging my Pay Pal $30 a month.. AND making a commission off of everything I bought by charging my credit card as "fees". This put my prices completely out of line. No way to sell at a profit.

So I've had some bad experiences with wholesale closeout and liquidation suppliers. BUT I have had good ones to... many good ones. This is not about the negatives of this business. It is about the fundamentals of good business:

1 - You've heard the phrase: "It's not personal, it's business". Don't think you can trust another person or business. It should be your policy to "verify" as best you possibly can each new business relationship.

2 - Remember who you are dealing with. You are looking for bargains when using closeout and liquidation companies. They can appear great on line, but may be working out of a garage or something. You don't know. But there are good one and you can find them.

3 - There are a lot of wholesale "directories" available. This can be a good way of doing some of your "verifying", but caution here too. Ask yourself what is the motive of the directory? Are they just selling a list? A list that may not be up to date or accurate?

4 - When looking at directory types of service to find your bargain goods, you need to ask yourself this very important question: Am I now a salesperson for this service? Are they making a commission off of me? Most of the time when you sign up through a directory, that directory becomes the middleman and makes a commission on everything you buy. Beware.

5 - If you join a directory, find one with an active membership. With a FORUM! A forum that has real posts made on it by real members. This way other members can tell you their experiences and who they trust. A good forum for closeout, drop ship and liquidators will be a great asset to growing your business.

Don't lose heart. Like I said, it's a maze. There are a lot of good honest wholesale suppliers for the closeout and liquidation markets. And you can make some good money with the right connections. Keep looking and just beware of the wolves out there.

I hope some of this will help you get through that maze.

Jay