Smart resale business niche selection will be 50% of your success in the resale industry.
While overall businesses and industries profit from having regular stores and choosing a wide range of categories, you want to go for niche ones. otherwise, you will be eaten by the large industries or sellers in retail.
Focusing your liquidation business on the right product categories can lead to higher profits. It also facilitates sourcing and brings a loyal customer base.
While it feels like most people choose niche just because they like it, it does come with its reasons behind.
Coastal Surplus Solutions is a team of experts who knows this because we work with sourcing. We notice the differences in sourcing general or going for niche options compared to your standard options.
We want you to capitalize on the ideas and how you can go over choosing profitable liquidation niches. Also, to develop true liquidation category expertise for your business.
Market Research: Identifying Underserved Categories in Your Local Market
More than focusing on what works, focus on what doesn’t.
This streamlines your process and selection, saving you time and leading you to the right answer sooner than later.
Always go an analyze your local and online marketplace. See what people are not buying and why. You can do this by:
- Researching demand and using tools like eBay Sold Listings, Amazon Best Sellers, and Google Trends. Check the top spots, but also the bottom ones and what doesn’t show on the listing as well.
- Scout local competition in flea markets and thrift stores. You will notice that certain categories are saturated, others untouched, and others more on the questionable side.
- Consider demographics and who will buy your items.
Besides identifying what people aren’t buying, you want to take this chance to identify what doesn’t have enough sellers.
Most categories that are part of the top but at the very bottom of the list aren’t lacking buyers. They are lacking people who can resell them the goods.
You want to target this as well and work on people’s need and demand. Try to do a test to see if there are not enough sellers or is just a fake stat.
Testing and learning are part of the process. You can choose a few categories and scan them, sell a few items, and see how they move before going on a final resale business niche selection.
Expertise Development: Building Knowledge in Chosen Niches
Once you have made a choice, always focus on research.
You don’t want t jump in without knowing how deep you have to dive. Otherwise, it leads to losses and more of a luck strike than actual benefit through it all.
Always focus on product trends, check blogs and forums, and social media groups offer great information.
Take the time to understand the market around quality and authenticity and how you can select it and work with it.
And more than anything, network with people in the industry. While some will see you as competence, you can simply go to trade shows and auctions where they are willing to share.
You can to learn as much as you can and build relationships to grow your resale hustle or entire business.
You chose a niche? You need to be an expert in it. Pricing, sourcing, market, and much more.
Supplier Relationships: Focusing on Specific Category Suppliers
You don’t want to source from anywhere.
Not all suppliers are reliable and they are for sure not worth it.
You have to vet suppliers, work on it, and be picky about the process. Otherwise, it will be over before you even get a chance to thrive.
You can consider a checklist to work on this as it is needed:
- Specialize your sourcing and work with wholesalers. Learn where you can find reliable suppliers and liquidation companies. You can and need to connect with surplus goods or this won’t be worth it.
- Negotiate for better deals. If you buy in bulk, you can have access to deep discounts. Ask about minimum order quantities, how much you have to invest, and more. Then, prioritize discounts on premium lots or working on getting benefits from long-term partnerships.
- Quality over quantity. More is not better in this industry. No matter the niche. Make sure you get all your items in the best conditions and quality possible. Then, work on the quantity and how much you profit.
Scaling Strategy: Expanding within Niche vs. Diversifying
Should you buy more for the same niche or work on another one?
You have both options as your business grows. However, resale business specialization tends to be the key for regular growth as a whole.
Our recommendation? Always work on your expansion with care.
More than focusing on what to go for next, focus on what to do before doing that:
- Expand within your niche in most cases. Find related products and premium lines. While you can go for specific apparel or different options, don’t divert too far or it will be problematic to build a loyal customer base.
- Diversify carefully and start with items related to the initial niche. Then, invest small and minimize risks as you go.
- Monitor margins and turnover. Are they really selling? If not, then move out of the new niche or items to avoid losses.
You can discuss liquidation business category focus with our experts at Coastal Surplus Solutions.
As mentioned by the Small Business Bureau, professional help for small businesses and resellers is key to bring profits.
We are here to help you in choosing profitable liquidation niches and work on your liquidation business category focus.
We know there is a lot to handle. We only want to maximize it all and ensure you get the best support.
Our team can source items, streamline logistics, and handle shipping. We have the liquidation category expertise in over 100 of them and can handle it all.
Call us today or fill out our contact information for more.
