How do I check an eBay seller’s sourcing of used or resale items?
Ask where every major category of stock comes from, how it is bought and how often. Look at receipts, supplier lists and notes on each purchase. Then judge whether the sourcing is repeatable, or whether it depends on the seller’s own time, eye and contacts. Used goods can be hard to replace once the owner steps back.
Start with a clear map of sources: estate sales, auctions, liquidations, wholesalers, individual sellers or returns pallets. For each, ask for receipts, how much was bought, and how much of it sold. Compare what was paid with what the items sold for, so you can see which sources actually produced a result.
Ask about proof of ownership and condition. Goods that came from someone else may have unclear origins, so ask how the seller checks authenticity and handles items that turn out to be fake, stolen or restricted. Your lawyer can advise on what to ask and how to write protections into an agreement.
Then test the repeatability. Who does the sourcing: the owner, a helper or a system? How much knowledge sits in the owner’s head, such as how to spot value, grade condition and describe an item? Ask to shadow a sourcing trip, if possible. Ask about storage of unsold goods and photography. A business that relies on a single person’s skill needs a clear handover plan. Ask how the seller decides what to refuse, because declined purchases often show the judgment behind the profit.
Key takeaways
- Map each source of stock and ask for receipts and results by source.
- Ask how the seller checks authenticity and handles problem items.
- Test whether sourcing skill can be taught and passed on.
- Ask how the seller decides what not to buy.
Related reading
12 pages on the same subject, grouped by topic.
Selling
- Expert answerHow do I explain my private-label product sourcing to a buyer?
- Expert answerHow do I document how I pick each month’s items for my subscription box?
- Expert answerHow do I explain my recruiting agency’s candidate sourcing methods to a buyer?
- Expert answerHow do I describe my butcher shop’s value-added items like sausages and marinades?
- Expert answerHow do I inventory my party rental items for a buyer?
Due diligence
- Expert answerHow do I check a print-on-demand store’s refund rate for misprinted items?
- Expert answerHow do I check a consignment store’s unclaimed items and their record?
- Expert answerHow do I check how a scrap yard trains staff on hazardous items?
- Expert answerHow do I check the safety of a thrift store’s donated electrical items and furniture?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.