How to Make Money As a Liquidator

Starting a liquidation business can be extremely lucrative. Setting up a liquidation business in your home requires little more than patience and an Internet connection because the logistics of payment and order fulfillment can be easily outsourced. As a liquidator, you will attend auctions and clearance sales to purchase large quantities of items, which you will then re-sell individually at a profit. Your success as a liquidator will be determined by your persistence and your willingness to invest the necessary time in your business.

Establish an account with a drop shipping business in your area. The drop shipping company will hold the items you intend to sell and will ship the items to your customers. See Resources at the end of this article for a link to a directory of drop shipping companies.

Locate liquidation sales and auctions by reading the classified section of your local newspaper. You should also search for local auctions on the Internet.

Ask for a program from the auctions you plan to attend. The program will contain all of the items for sale at the auction. Use the information to determine what specific items you want to bid on.

Determine the retail prices for new models of the items you will bid on. This research will help you determine how much you will be able to re-sell the items for, which will help you figure out how much you should bid for the items. Remember that you should list the items at a discount to the retail price of newer models.

Attend liquidation auctions and sales and bid on the items you've identified. Once the bidding is complete, you should inspect the items to make sure they are free of defects and damage. Also be sure to take pictures of the items, which you can use on your postings.

Notify the drop shipping company you're working with, and ask them to take possession of the items you've purchased. You will need to provide them with the address of the auction site and with authorization to pick up your specific items. Make sure they pick up the items within 48 hours.

Post the items you've purchased on eBay and on Establishing an account with both websites is free and takes only a few minutes. Be sure to include your pictures with your postings, and make sure to list the items at a discount (at least 10 percent) to the retail price of new models.

Provide the contact information for your drop shipping company in the "order fulfillment" sections of your eBay and accounts. This information will allow eBay and to automatically send shipment authorization to the drop shipment company when payment is received for a listed item.


  • Make sure you link a PayPal or bank account to your eBay and accounts. The payment process will be automated, but you should periodically check your bank account to make sure that you are receiving payment for your items before they are shipped.