Where to Buy Surplus Goods Wholesale Online
You are running a small resale business and have so far been buying Amazon return pallets from your local wholesale supplier. However, you face certain issues with the supply as the seasonality affects the availability of the merchandise you’d like to buy and sell. And additionally, you only have one wholesale supplier nearby that you can source merchandise from.
It would be perfect if you could build a network of wholesale suppliers so that you have more options to purchase. The best solution would be to buy surplus goods wholesale online, from the comfort of your home so that you don’t have to spend hours of driving towards various locations and to various suppliers, but rather have the merchandise delivered to you. This is certainly possible, and if you follow a few tips that follow in this article, finding a wholesale supplier will be an easy task for you.
We will not only discuss the potential sources, but also various types of surplus merchandise you can have a look into, as well as the ways you can maximize your chances of higher profit on resale.
What Are Surplus Goods?
The title basically says it all: surplus. It is either merchandise that did not sell in time, or enough, that did not even get to the shelves, or that was returned within the guarantee or warranty period to the seller. This merchandise ends up taking up space for the retailers and has to be moved on in order to free up space for the new stock coming in.
Let us first look at the merchandise that didn’t sell in time, the so called shelf pulls. These are the products that have been displayed in the store but never sold. This often happens to clothing, due to its seasonal nature and use, as well as with electronic gadgets, whether these are smartphones or computers. Once the season is over, or a brand new product is introduced, the merchandise that was displayed in the store at the time gets either discounted in order to try and sell it quickly, or it gets pulled completely and disposed of through other channels we will discuss later on.
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A portion of the merchandise we call surplus is taken up by the goods that were ordered by the store managers but never got to the store shelves. This sort of merchandise is called overstock, and is the merchandise that was simply sitting in the warehouse and is now only continuing to take up space. This sort of merchandise also gets sold through other channels. The good news for you is that you can buy overstock pallets of merchandise that is essentially brand new, just like the shelf pulls.
The largest portion of surplus merchandise, however, is taken up by the customer returns. Let’s take Walmart as the largest retailer for example. This company sells goods either through their physical or online stores. Around 30 percent of all the products sold, especially online, gets returned to the seller for one reason or another. Some products were faulty, some sustained damage during shipping, while others may have been returned in their original packaging, brand new, simply because the seller shipped the wrong colour/size or the buyer changed their mind. Some buyers use the generous return policy to the full extent and return products in exchange for new ones simply because they can.
Compared to the previous two categories mentioned, customer returns are not brand new, and can’t be sold as such even if the product came back in its unopened original packaging. These products come in various states and therefore are sold at a lower price point, compared to the previous two mentioned. In reality, these products can be in all sorts of shapes, sizes and condition. But, this is not necessarily a bad thing. You can still make money with Walmart pallets of returned merchandise, but more on that after we have a look at where you can find Walmart pallets for sale online.
Sourcing Surplus Goods Wholesale Online
As your local wholesale supplier does not cut it you have now turned to the online sources, and it is a popular move for many. Less hassle, no open hours and all done from the comfort of your home.
Finding a wholesale supplier that will provide you quality merchandise and services is the most important step in this whole process. As businesses have moved online so have the scammers, so make sure you double or even triple check any company you come across. Many will promise goods and services but only the reputable sources deliver. This is why you should make full use of all the available resources and find customer reviews of the companies you are looking at. These are usually the best indicator of one’s quality.
Now, wholesalers have moved online also and you can continue buying merchandise from Walmart wholesale. But, there is another way to deal with this. See, wholesale suppliers buy the surplus merchandise we mentioned above from retailers by the truckload and sell it on to you with a wholesalers’ markup slapped onto each pallet. What retailers do with the surplus merchandise is they liquidate it. In this case, Walmart liquidation department will make sure all the surplus merchandise is dispatched.
However, over the recent years, liquidation auction sites have emerged and retailers have fully embraced this platform because it allows them to reach a wider online audience and sell merchandise directly to smaller buyers. The likes of Direct Liquidation have made sure to create platforms that will serve retailers and help them liquidate their merchandise faster, while allowing smaller buyers to take part in the buying, eliminating the need for wholesalers. This also resulted in lower purchase prices, which again results in higher profit margin and competitiveness in the market.
So, now let’s look at the merchandise you can buy through these liquidation platforms and how you can make sure to pick the products you require.
Benefits of Buying Surplus Merchandise
When buying through liquidation platforms, you are probably the most concerned about the quality of the merchandise, knowing that liquidations are dealing with customer returns and b stock. The first thing, as we noted above, is to find a reputable platform. The truth is, both top-tier retailers and liquidators have a reputation to look after and are looking to provide quality service to their customers. While the majority of merchandise is used you can find some gems in there.
The first and most important benefit is that you are buying below wholesale prices, which leaves you a higher profit margin and more room to play with when it comes to matching your competition and still making a decent profit.
The second benefit deals with the quality question. Shelf pulls and overstock merchandise is basically brand new so there is nothing to worry about there. It is the customer returns that may worry you. But, if you know what to look for, you should have no issues there either. The truth is, a large portion of the returned merchandise gets reviewed and refurbished with money-back guarantees and even extended warranty being slapped onto their refurbished products. This is a sign of confidence in the quality of the merchandise.
But how do you know what you are buying? Easy, reputable liquidators will provide you with a manifest for Walmart pallets, or any other liquidation pallets offered on their platform. This is essentially an information sheet you get showing you the descriptions, product type, quantity and most importantly, condition of the merchandise. There is a grading system, but if you are buying as new products of Grade A and even Grade B, you should be fine.
Also, both reputable liquidation platforms such as Direct Liquidation and retailers such as Walmart have a vast distribution network that allows you to pick merchandise from the distribution centers nearest to you your location. This reduces delivery costs or even eliminates them if you are close enough to go and pick the merchandise up yourself.
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.
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