When people start out selling online, their biggest challenge is often which products to buy and where to buy them from.

There are a number of easily accessible products sources that many online sellers start with: flea markets, arbitrage, used books and so on. Liquidation or clearance stock is only a little harder to access and there’s a lot of potential for profit.

But people need to do their research before they jump into the world of liquidation. A lot of sellers start completely blind and with very high expectations. They’ve seen prices up to 95% off retail, so think that they’re going to invest a thousand dollars and make a million. That’s just not the case.

So here’s everything you need to know before you start sourcing clearance products. I’ll explain how the liquidation business works. I’ll cover the pitfalls you need to be aware of and give you my best tips on how to profit from liquidation stock.