Buying liquidation or wholesale can be very profitable if you know how to bid correctly. I am going to explain the thought process involved and the "how to" so you can bid correctly and lower your risk while maximizing your potential gain.

The bidding on liquidation product is very different than online auctions. The first step is to get a list of product to bid on from liquidation or close out sources. You bid on liquidation items by placing what is called a "Blind Bid" from this product list. This simply means that you bid the price you are willing to pay for a set list of product.

No other bidders can see your bid or vice versa. You are notified via email if you won the items you bid on, usually within 48 hours. It is very important that you do your research thoroughly prior to placing any bid!

Payment

The two accepted methods of payment from the liquidation sources are Cashier's Checks or Wire Transfer directly to their bank.

Buying Liquidation

Once you obtain the contact information and are placed on the Approved Buyer list from a liquidation company, you will receive an email stating, "Lots for Bid" or "Manifest Bid List".

These bid lists come with basic listing information, such as quantity and a very general description of the product. Depending on the company, the Bid Lists are broken up into three separate categories: "Sent Good", "Sent Bad" and "Untested". All the companies terms and conditions clearly state "As Is, Where Is, With No Guarantees Or Claims, Etc to Working Condition"!

"Sent Good