How do I become a Liquidation Broker?
I have another email from one of our blog readers who has a few questions about becoming a liquidation merchandise Broker.
“I have been reading your blog and find it to be filled with lots of good info. I just read your story and can relate to sitting at the computer all day long. I do a lot of reading myself and I am steadily learning the ins and outs of the liquidation & surplus business. One thing I am finding difficult is learning how to broker merchandise. I don’t know if anyone will be willing to point me in the right direction, but I have lots of sources of good merchandise in large quantity’s and I would like to take advantage of it in some way. ”
Here are his questions:
- Licenses needed?
- No license needed other than a local business license which you can apply for at your City offices. You will need to get a “Resellers Permit” also called a Resale certificate or Resale Number. Getting a sales tax number is very easy and inexpensive. Most wholesale or liquidation companies will ask that you supply a copy of this license to prove you are not using merchandise purchased for personal use. I should also advise that if you broker wholesale merchandise to someone in the same State you reside in you must ask for a copy of their resale license and keep it on file. If your buyer does not have a resale license you have two choices, 1) Do not sell to them or 2) Charge the appropriate sales tax specific to your state.
- Does the money actually change hands from buyer to broker to seller?
- This is the most common way to transact as Broker. Buyer pays you (the Broker) and you then pay your source minus your markup or fee.
- Do I have to worry about my buyers contacting my sellers?
- This does happen and is one of the many perils of Brokering merchandise.
- Could you point me to some good reading material?
- I wrote an article about Brokers at the WholesalU Blog
- I don’t believe there are too many books on this subject are there?
- There are no books on the subject, we are currently working on a guide about brokering merchandise.
Wholesale Liquidations Exposed! 137 Pages of purchasing information & liquidation sources in a fact-filled guide that wholesalers and liquidation brokers do not want you to get your hands on! I have been buying and reselling wholesale liquidation merchandise for ten years...and I am going to share my knowledge with you!
Full mp3 Audio Posts - Sit back as I explain several key areas of product sourcing. I also answer many of our readers questions...all in audio format. Turn your speakers up and take some notes!
Liquidation.com - 500+ Bulk Lot Auction Categories Bulk lots are sold by the truckload, pallet, or small package, and conditions range from new in a box to customer returns and used. Wide variety of product categories includes apparel, computers, electronics, housewares, industrial equipment, vehicles, and much more.
I ran across your website the other day and found it to be very informative. I searched the net for days trying to find info on surplus merchandise, and I have to say i’ve learned the most from you.
thanks!
I do have two questions. is it really that easy to buy direct from department stores, I ran across sites that say department stores only sell to established retailers, and that you have to be ready to spend big money? and what about non-department stores like forever 21, abercrombie, footlocker and others, do they offer surplus? I would be so grateful for your input. thank’s
Thanks buddy! now my permalink structure is ok!
Nice blog by the way! it will be nice to trade links.
Lets stay in contact!!