Running an online resale business can be a great spare time job, second stream of income or even a full-time job if you know how to source cheap but quality merchandise to resell. Dealing with brand new items are becoming harder and harder as retailers and manufacturers are using the power of e-commerce platforms such as Amazon to expand their reach and get more buyers. This not only makes it very hard for you to compete but also eliminates manufacturers as a potential source. This means you have to look elsewhere.
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This puts customer returns in focus. And as you are dealing on Amazon and would like your business to reach at least that standard of quality, you will be interested in buying and reselling Amazon merchandise and Amazon customer returns. So here are a few pointers on where to look.
When it comes to customer returns, these products go through a specific process before they are put up for sale, or “liquidated”. As a small buyer, it was previously almost impossible to turn up and buy Amazon liquidated merchandise. This is because wholesale buyers would turn up with their trucks and snap up everything they can, leaving scraps for small buyers.
That’s why wholesalers were the next place to look for merchandise. However, wholesalers usually take the merchandise to their warehouse, unpack everything, cherry pick the best items to sell individually and then sort and pack back up the remaining products. You are still able to buy in bulk and keep the price down that way, but you are losing out on the best items.
In addition to cherry-picking the merchandise, you have to realize that every wholesaler will slap their own markup on the merchandise before they sell it on to you. You may negotiate some favorable terms with the wholesaler if you are a loyal customer and have built up a relationship with them. Even better, if you have a number of wholesalers you work with, you might be able to pick only the best deals in terms of price and quality, while also raising your chances when it comes to availability of merchandise.
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But there is a weak link in this plan: the price. When you factor in the wholesaler’s markup and your delivery costs, despite having favorable terms on your side, you are still competing in an online market where prices are nearing wholesale. The margin for your profit is so slim it makes you wonder whether the effort you put into the business is rewarded properly.
This is why the traditional way of getting supplied in bulk has to be thrown out the window. Recently, people have started to give more notice to liquidated merchandise. Liquidation companies themselves have raised their standards in order to stay afloat and bring in new customers. This meant that liquidation companies no longer deal with used, broken and scrap merchandise only. While the majority of merchandise is used and basically customer returned, the quality of their merchandise has gone up. This is because liquidation companies, such as Direct Liquidation, have seen a chance to exploit a gap in the market and offer their services as a platform for retailers such as Amazon, Walmart, Target or Lowe’s and help them reach a wider online audience. This enables them to liquidate their merchandise faster.
This is the first question one would ask, due to the reputation that was built up around liquidated merchandise. But when it comes to customer returns, you have to understand the process first in order to see the benefits.
When merchandise is sold, especially online, a significant portion of it is returned to the seller for a number of reasons. Sometimes the items get damaged during shipping, sometimes the packaging gets damaged, or the seller simply ships the wrong item. Sometimes people change their minds about a products or maybe they expected the item to look different in real life. Others make full use of the 30-day money-back guarantee and test out the products before returning them for a refund or a new item.
And some of these products get returned in original packaging, unopened, brand new. But no matter the condition, the retailers are not allowed to put these items back into sale as A-Stock and have to find a new way of selling it. This is why retailers liquidate their merchandise, which means they sell it in bulk at significantly discounted prices.
But, as noted above, competing with wholesalers and their buying power was not easy, until now. By buying through Direct Liquidation, you are essentially buying directly from the retailer. Amazon has its storefront on Direct Liquidation and you can pick and choose what merchandise you need and want to buy. In addition, it ships directly from the retailer’s warehouse.
But the list of benefits is even longer. You are now able to buy directly from the retailer, and you are getting a serious discount. You are also eliminating the middleman, the wholesaler, and so you don’t have to pay the wholesaler’s markup. This means your profit margin increases and you are giving yourself every chance of being competitive in any market.
It’s fair to ask questions about the quality of these returned items. As we noted above, there are plenty of reasons why merchandise is returned, which means items get sold in different conditions. However, retailers have specialized departments that deal with customer returned merchandise. They review the items, and sort them. If there is nothing wrong with the item it is sold in its original packaging, some products get refurbished, brought back to their original condition and repackaged in new boxes and readied for sale.
The best thing is that any brand new or refurbished item get an extended warranty slapped onto it as well as a full 30-day money-back guarantee.
There are also items of lower quality. But when you buy through Direct Liquidation, you can always check the merchandise condition. Every pallet or lot comes with a manifest, a packing list showing you the type, the quantity and the quality of merchandise within each pallet. This way you always know what you are buying and in what condition it is. So all there is left to do is set up an account on Direct Liquidation and start sourcing Amazon customer returns there.
Direct Liquidation is a goTRG company.
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Diego works as a sales representative for Direct Liquidation helping businesses to source liquidation inventory from the world’s top retailers and manufacturers. Diego works with single pallet, LTL and truckload buyers directly to ensure they stay in stock with high quality inventory year round.
Schedule a sales callback with Diego right now and find out how he can help your business profit with liquidation merchandise.
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