The Advantages of Buying Pallets of Wholesale Liquidated Goods
If you are planning to buy wholesale liquidated merchandise either for resale to end-users or smaller retailers, the best option is to source through online liquidation websites.
These sites can offer prices that are even lower than wholesale because they do not add a markup to the products they sell. They simply work as platforms where retailers and manufacturers can liquidate customer returns, overstock and closeout items. The best of them, like Direct Liquidation, have exclusive agreements with major retailers and manufacturers.
What is Liquidated Merchandise?
When applied to retail and wholesale selling, the term liquidation refers to retail companies’ practice of disposing surplus merchandise. This includes products returned by customers that can no longer be sold as new: overstocks, closeouts and refurbished/reconditioned products. These goods are sold by online liquidators directly to small businesses or resellers usually via live online liquidation auctions. But what exactly are customer returns, overstock, closeouts and refurbished products?
The largest portion of merchandise available in online liquidation sites are customer returned items. According to statistics, customers in the U.S. returned around $351 billion worth of items and this amount is projected to reach $550 billion by 2020. Products are returned for different reasons. Sometimes the product is defective or bear superficial damage or sometimes the customer simply wants to return the item unopened and unused.
Whatever the reason for the return, retailers are prohibited from selling the returned items as new, even if the products are still actually new. The accumulation of returned products poses storage and warehousing problems for retailers. This is where liquidators come in. They provide online vendor space for retailers to sell these products in a short amount of time.
Overstocks are either seasonal merchandise that are no longer needed, surplus to requirements or products that have been over-ordered by the retailer. Ordering stock is not really an exact science. Even large retail chains commit overstocking mistakes. Seasonal stocks that are not sold occupy warehouse space and need to be disposed of as quickly as possible. This is why they are sold in bulk and at very low prices. These are usually brand new products.
Closeouts usually refers to merchandise coming from a store that is closing down. Even large national retailers have to close some of its stores. When this happens, the inventory of the closing store is bundled into pallets or truckloads and sold via online liquidation auctions well below MSRP.
Refurbished and reconditioned are items returned because of some minor problems. These are products repaired or refurbished back to working condition and sold with a warranty.
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The stocks offered by online liquidators are often of very high quality because they work directly with national retailers and these retailers sell mostly branded items. You can find items from some of the world’s largest manufacturers including Apple, Samsung, DeWalt, Microsoft and LEGO. And since retailers want to quickly dispose these items to free up storage space, they are offered way below their MSRP. This will allow you to be more competitive and more profitable.
Advantages of Buying From Online Liquidation Sites
An online liquidation marketplace is a venue where national retailers unload surplus inventory. These include own brands and branded items sold in truckloads, pallets and boxloads. It is a one-stop-shop where liquidated stocks of different categories are auctioned to resellers with valid licenses. Online auctions are conducted daily and interested buyers are notified via email alerts when the pallets they are interested in purchasing are about to be auctioned.
Unlike the traditional wholesalers, top-tier online liquidation sites are not middlemen. They provide online vendor spaces where large retailing companies like Amazon and Walmart can sell closeouts, overstocks and customer returns directly to resellers. They are also not just simple distributors. They serve as facilitators to ensure smooth transactions between national retailers and small business that are buying liquidated merchandise for reselling purposes.
Since liquidators work directly with national retailer partners, customers can be confident that they will not be purchasing counterfeit products. You can be sure that big name retailers and top-tier liquidators actively and strongly protect their reputation.
Planning to Buy Liquidated Goods for Resale
Here are some of the factors that you need to consider when buying liquidated items. The clearer your game plan is, the better.
- You should have storage space for the liquidated merchandise that you will purchase.
- You should determine how you will pay for your purchases.
- You should get as much information about liquidation platform you are buying from.
- You should compare prices offered by different sellers.
- You should identify the best platform for selling the products you purchased.
Here Are Some Tips When Purchasing From Online Liquidators
- You should obtain a resale certificate as it is a requirement by most U.S.-based online liquidation sites.
- You should thoroughly inspect the pallet manifest.
- You should understand the seller’s grading specifics to get insights into the quality of the items in the pallet.
- You should consider your shipping costs because they can vary widely.
You should also look closely if you can order in larger volumes because buying truckloads can give you more savings compared to buying just wholesale pallets. This will further lower your total cost and increase your profitability.
Online Liquidation Platforms
When buying wholesale liquidated merchandise, choose only reputable online liquidation auction sites or platforms. The best is Direct Liquidation. It offers a unique mix of inventory, different lot sizes and varying product conditions so buyers can usually find the items they are looking for. You are assured of getting top-quality branded merchandise.
Direct Liquidation has wholesale liquidation distribution centers in the U.S. and Canada that are close to the warehouse of their partner retailers. Their U.S. locations can be found in Palmetto, Georgia; Frankfort, Kentucky; Greenfield, Indiana; Bentonville and Rogers, Arkansas; Spartanburg and Blacksburg, South Carolina.
If you are not close Direct Liquidation’s distribution centers, you can use our shipping. We use our own courier companies with rates that are usually lower than third-party couriers.
Direct Liquidation is a goTRG company.
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.