🏴☠️ A Deep Dive into Costco Auctions
Back To BlogI talk about Costco store returns and overstock auctions all the time. Theres a bunch of reasons for this.
Today, lets take a deep dive to talk more about the why and how of experimenting with this business.
With Costco auctions, you can make a few extra thousand a month with a side hustle or scale a business to millions per year.
Why Costco? They are a terrific gateway to learning to resell liquidation products. Let me explain:
Costco People
When you interact with Costco, you deal with actual humans who will work with you to solve problems and create opportunities.
Most companies' sole focus is on numbers, and to them, you are just another number. Walmart, Target, and especially Amazon simply dont give a damn about you.
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Store Prices
Costco doesnt discount. Technically, they do, when they want to get something out of their stores, but for the most part, when they list a retail price of an item on a manifest, its accurate.
Most other retailers heavily discount, which skews the perceived value of your buying.
For most retailers, the retail price is a lie. Costco's pricing information is much more accurate.
There can also be an upside to the value of a product since Costco typically sells for less than other retailers.
Quality
Costco store returns are usually of higher quality than those from Walmart, Target, or Amazon.
Why? I have no idea. Maybe its their liberal return policy or their customer base? Let me know your thoughts.
This is another opportunity for you. Less headaches, less garbage to sift through.
Size Matters
Costco offers small lotsa great way to experiment to learn what products sell well for you.
You can start with less than a pallet, then move up to pallets and eventually to truckloads if that is your path.
Condition Guarantees
If you buy a load from Costco and there is a discrepancy in quality or value of more than 5%, Costco will offer you a credit or refund.
Manifests
Every Costco auction includes a full manifest with every product listed. This gives you a ton of information to research BEFORE bidding.
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Remember never buy auction items without a manifest. You will have no recourse if things go wrong.
So how do you decide what to buy?
My personal rules:
Something small (easy and inexpensive to ship). Something valuable ($100+). Something that does not lose value quickly (No CE products). Something other resellers ignore.
Why?
- Small items: Since I ship everything I sell, I need to be able to store and ship it easily and inexpensively.
- Valuable: the same energy you spend to sell a $10 item is required to sell a $500 item. I want to do less work and make more profit.
- Losing value: I spent 25 years in the consumer electronics and tech markets. I chased falling prices for decades. Im not doing it anymore.
- Weird products things that other resellers might ignore. I dont like competition. What can I buy that others wont?
Sometimes, I cant meet all these requirements, of course.
But these are my rules.
Your rules will likely be very different.
I know a company that only buys scratch-and-dent appliances. This scares me to death, but the owner has figured it out and makes millions in this market.
A bunch of the members in my$5 Mastermindgroup are flipping couches and generating solid returns.
It just depends on your situation. Start small, experiment, and then create repeatable systems for success.
If you want to learn more and start on this journey, theres a few ways I can help:
- Join our $5 Mastermind. For less than a fancy cup of coffee, you can surround yourself with 151 people who are learning and changing their lives.
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- 2. Use this discount code to save $20 on my Costco Auctions Unlocked program if you want a DIY system to get in the game. Code: START (expires 3/30)
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- Book a call if you need a 1-hour strategy session to get you jumpstarted.
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Enjoy your week, and cheers to your success!
~ Shannon