Before incurring any purchases and markets, comparisons should be in place.
Yes, going over liquidation ROI by category and working on liquidation profit margin comparison can be exhausting. However, it pays off in the short- and long-term, making it the best strategy you can have for your business.
Coastal Surplus Solutions knows this well. we always recommend our clients and partners to have their categories in place.
If they need help, we can come in and support the analysis and how it should be handled. With this in mind, you can also learn a thing or two before over committing to the entire process.
This guide compares liquidation ROI by category to help you identify the most profitable liquidation categories. However, keep in mind that a few considerations are not included:
- Your preferences.
- The way you handle sales and would like to focus on.
- The specific market in a city or county.
High-ROI Categories for Resellers
When trying to decide what to choose, we have three safe categories to recommend:
- Electronics.
Anything around smartphones, gaming consoles, and smartwatches are good idea. They are always in demand, as people regularly make changes.
You can also find value in refurbished and overstock electronics easily and they will move just as quickly. This is a massive advantage since you don’t have to entirely rely on really good pieces and brand-new items.
Smaller items like phone cases and headphones also offer excellent markups, especially during back-to-school and holiday seasons. All of them with low shipping costs.
- Designer Apparel.
Like branded clothing that is usually limited-edition. Sneakers and accessories enter this category and bring great profits thanks to brand recognition.
All of them move quickly and you won’t suffer from stagnant capital either. Moreover, you can make as much as 50% more compared to your purchase price.
- Jewelry.
Precious metals, branded watches, and luxury jewelry truly matter. They are all pieces in high demand and with great resale values.
All of them will range from 40 to 70% ROI or higher, bringing great options for revenue and reinvestment later on.
Compared to your usual second-hand clothing or working on home décor, you will find that best liquidation categories for profit incline to the previous three.
Medium-ROI Categories for Resellers
Does this mean other categories aren’t worth it?
More than trying to find unique categories to focus on because of demand, you can always mix them.
This is a great strategy for implementing bundling and focusing on profits to move all items. You cannot only rely on high-value or profit pieces, so it isn’t that viable unless you have a clear plan that moves all your items.
Categories that are part of the medium-ROI group are also worth your time.
- Home goods like furniture, décor, and small appliances. All of them offer great returns, but the percentage reduces by 20% compared to the previous range. You can, however, have more variety of items like ergonomic chairs, trending pieces, outdoor items, and much more.
- Toys, including branded and collectible ones. retro games and board games are always sought after. The same with video games and consoles, and how people are always trying to get them at great prices, even if they are not 100% new.
- Sporting goods, like fitness equipment, dumbbells, and even clothing within this category, is great. You can sell during holiday season and specific times.
The ROI often ranges from 25 to 45%, which is the huge difference with the first option in high-ROI categories.
Lower-ROI Categories for Resellers
Anything in books, basic clothing, and general merchandise will almost never move higher than 25% ROI.
This is due to the generic merchandise and how you don’t have a specific concept in place. However, niche or collectible items are the exception in this low category.
You can expect a few unpredictable situations, but unless something is “rare”, you won’t obtain much.
Unique and rare book editions, brand clothing, and mixed items from categories are the ones bringing more than 25%.
Analysis Factors: Demand, Turnover Rate, Profit Margins
When going over a liquidation profit margin comparison, you have more than the categories themselves to consider.
- Demand. The high-demand determines the value of the items in most cases. This is why electronics and brand apparel sell so quickly. They are always sought after.
- Turnover rate around quick sell-through. You want to reduce storage costs and free up capital. if the category allows you, that’s the way to go.
- Profit margins and how much you make after purchase, shipping, and handling fees.
- Seasonality and how they move throughout the year. Do they peak in specific months or always go around in sales?
Take the time to analyze every factor before trying to make a decision. This is what truly helps come with a clear number when trying to calculate liquidation investment returns.
Feel free to contact us at Coastal Surplus Solutions and we can do it all.
- Sourcing.
- Streamline logistics.
- Shipping and delivery.
