Buying Truckloads of Inventory Below Wholesale to sell on eBay Episode 104


Uploaded by HillBrothersVideo on 26.09.2011

Transcript:
I'm Andrew and in this video, I know it's been a while since i
have made any videos on eBay selling
but there's a reason and it has to do with the topic of this video
here
now before i get into this any of you have a have subscribed to my
channel for eBay videos
I am going to be uploading a bunch of videos that have nothing to do with selling
on ebay
they're going to be knitting videos and all that kind of stuff that's just
going to be for while
but just bear that in mind in the future if you've subscribed and you see a few
knitting titles here and there

i will be
continuing to do eBay videos
so let me explain
i'd recently opened a furniture store
and i also closed the furniture store we were open for about a month
and i'd bought a truckload of furniture
that was
most of that was store returns

through overstock.com
and i learned quite a bit and i know other people who have bought
truckloads and so on this video i want to
if you're considering buying a truckload of of anything
it's worth it to
watch this video and learn a few things
if you haven't already
talked to a lot of people so here we go
now there are some things that you want to know before you're going into it
and we're going to be going into
all of these questions the first thing you want to know is who you're buying from
and then you also want to know what the inventory is obviously but believe it or
not people buy things
system initiatives stuff

the more also going to talk about how much
should you pay
for these items and then
what do you do if there are problems so let's start at the beginning
and talk about who
are you buying from
now there's a lot of companies out there
who are selling online
advertised truckloads some of them aren't actual

they're like middleman
so they don't have the actual truckload
they are just pretending to and then they turn around and buy it
and move it but there's also other companies out there that are totally
legit
and so
if you live in the area that this company is located

it's worth going it's worth knowing
who they really are so
in our case we live in Utah
and so we know overstock.com everybody knows about overstock.com
so we work are confident about buying
a truckload from this company
because we knew who they were
we knew where their warehouse was we've seen it and had been there
before so

if they're local it's worth going in if they're not you definitely want to
find out if there's anything
online about this company

from any other source besides themselves
because you can get ripped off very easily there's a lot of people scamming
and i'll talk to you more about
how you get scammed, so
you want to know who the company is
is it the company that manufactures the product is it a
reseller
some resellers are fine
but you definitely want to know who they are
once you know who the company is
you want to know the inventory
will first let's talk about what store
some of the companies out there that sells truckloads
will represent wal-mart
or they'll represent costco or
Nordstrom's or any variety of drugstores and so it's worth
knowing what type of inventory you
will be getting if it's a Walgreens or a

if it's Walgreens you'll probably a lot of multi-vitamins makeup
the general things that a walgreens sells verses a wal-mart that covers the
whole spectrum
now there's a thing called a manifest if you don't already know
and some of these companies will offer a manifest that's very detailed
and other companies will just say mixed lots of
sporting goods
that's not good enough if your can be spending any significant money
because you have to know
what you're buying to even assess
it's worth
you also need to know the
condition of the inventory
if the inventories of returns
or all broken
or what grade some companies will grade it the
inventory
a b c d
an "A" would-be
possibly still on the package
or just damaged packaging and a "D" would be
totally scratched or or absolutely
destroyed
so it's worth knowing that
and then you also want to know
old the inventory is
i know of
some people that bought the truck load
from a company
they didn't do their research on who the company was
it was company from southern california advertising that
they were selling
Best Buy electronics returns
and the manifest was very vague
and the condition was very vaguely knew that they were returns
when they they spent
i believe it was fourteen thousand dollars
on this truck load that had an advertised
SRP of
three hundred thousand dollars
all of the inventory was from Best Buy that they got on this truck load
was ten years old
and you can imagine what ten year old technology is
they had a lot of the cassette tapes
that have the wire that comes out and plugs into your personal cd player
anybody
who has half a brain knows that those are obsolete
well they didn't know what they were getting and so they're stuck they're not
even going to break even
and a lot of what they got aside from that was just wires and cables
s-video cables and rca cables
so do your research
in our case we bought furniture
it came with a manifest
and so we had a very
very good idea of what we were getting
but we still don't know
what to expect when i came to selling it and I'll get to that in a minute
okay so you want to assess what you're spending your money on
what is your cost
now when we bought it, I'll just tell you exactly what we paid, we paid twenty five
percent of wholesale
so what i'm saying is if
the item was
a hundred dollars
SRP
and then the item
wholesale price was fifty dollars
than we paid twenty five dollars

and so, no i'm sorry
we paid
twelve fifty
so it was twenty five percent of wholesale
so you want to know your costs relative
to
wholesale cost
but also the SRP
now all that's great but what really matters is what the street price is, if you
buy something like we had
q dyson vacuum in this truck load
and
the dyson
sold for three hundred dollars
and so they advertise to you what the SRP price is and what the wholesale
cost is so we knew what we paid
but the street price is totally different what is someone going to pay for a used
dyson? also you have to realize that
not all the inventory's going to be in sellable condition
so there might be pieces you of the dyson for example if you get one that is
totally trashed
there might be parts of the Dyson that you can sell
but that cuts into your whole overall cost
so
to find the street price of something, one of the easiest ways is to just go on amazon.com
or ebay
and look at completed listings or the used price and you can get a general
idea of
what the item is and then you also need to know if anybody is buying the
item and that that's where you ebay comes in
and it's really helpful if there's anybody with that listing
in the completed items section and it's green the dollar amount as green that
means it sold
so
if there's a ton of that that item that you could potentially buy that's selling
that's great
but you also want to know what you're buying as in
know
the product
don't just take a stab in the dark which is also kind of what i did and all tell you
more about at the end
okay so once you've assessed they have investment
and there are some problems of that
that can occur

if things are missing from the manifest
that happen to us and we didn't talk ahead of time
and so we just
took a loss there was supposed to be two Dyson's but there was only one dyson
there was supposed to be a
zebra print chair that wasn't there, it was a mislabeled box and so we got a lot of
things that
that we didn't anticipate
well
the reverse i mean, we were expecting things that we didn't get and
so you want to know what they're willing to do
another thing is
what if the items arent as described
so if the items come in and things are described as A and B grade and in you get in
a bunch of
C and D grade items
or they're not even what you've purchased at all
and then
you also want to know if you're buying
any kind of item that has been recalled
because you won't be able to sell it, at least within the US
there are other countries that you can sell items to don't know how well you
feel about yourself
doing that kind of thing but you do want to know if if you're buying recalled
items
and then that so here's just a couple of other things to consider
so
you want to factor in
the cost of freight if it's local or if it's coming across the
country because it's going
to affect your bottom line
and then here's what happened to us in opening this furniture store
we were planning on having a permanent location we we did a month to month
lease just to see how well the
furniture sales would go

we bought out first truckload we
filled the store
and then
we started selling it and within about a week or two after we set up the
store
we'd talked to Overstock.com and they said, Oh by the way we're probably not going to be able to
sell to you anymore
we are going to open up a furniture store right down the street from you
so fortunately we just had a month to month lease
and so
we weren't
tied up in all that type of
obligation
so you want to know if
this is a regular thing and if they do have regular truckloads
then get on their mailing list of these companies up what some of these
companies in the description
some websites and the ones that i know
but again i haven't dealt with so just be aware of that
know if you're getting into something you'd be doing long-term or if you are going
to do this as a one time deal
and then the other thing is if you doing this at home you have to think about
where you're going to put a semi truck load
of inventory whatever it is
it can really take up a lot of space so
if you get a storage unit
you might be able to pack it to the gills
but then you are spending money on storage
so just those are some things to think about
I appreciate your time and watching this video
and again i will be uploading some videos that
may or may not be of interest to you but i will continue doing eBay videos
but thank you
thanks for watching, if you have any questions or
any comments please leave them
and have a good day thank you!