When buying merchandise for your online resale business, keeping the purchase costs to the minimum is a must. This is how you make sure your business is worth your effort, and how you keep your profit margin healthy while staying competitive in a market. In addition to the low prices, you have to ensure that the quality of merchandise is adequate so that the customers are satisfied and they have a reason to buy from you again. Top of the candidates’ list is certainly B-Stock merchandise.
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There are a few things you can do to make sure you achieve this scenario. First is finding the right source, the second is to cut all the accompanying costs, such as delivery costs, to a minimum. Here are a few tips that will help you achieve or at least get as near to that goal as possible.
Before moving on to the sources, let’s first explain what B-Stock is and why it is so popular. Retailers, such as Walmart or Target have a huge throughput of merchandise, and also have a very comfortable return policy, from the buyer’s perspective. Namely, you can return a product within 30 days for any reason and have your money back. You can also return products that are under guarantee and swap them in for a new one.
This leaves the retailers with returned merchandise that is in near new condition, and often in new condition in original packaging, that can’t be resold on the market as A-Stock. This is why retailers then repackage everything up and sell it as B-Stock. Due to its condition, this merchandise is popular among online resellers as it is sold at significantly reduced prices.
So where do you buy B-Stock? You could go directly to the retailers. However, these products are often sold in pallets or by a truckload and the minimum purchase limit is high if you are strapped for cash. This is why you see wholesale companies turn up with their trucks and snap up everything. The merchandise is then reviewed, repacked into smaller lots and pallets and sold to the end users with a wholesaler’s markup. This eats into the potential profit margin you could achieve if you bought directly from the retailer. In addition, prices of single items sold online are nearing wholesale, making your efforts to stay competitive go in vain.
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What you need is a source that will enable you to buy by the pallet at prices below wholesale. This is where liquidation companies come in. But don’t go for any liquidation company. The rule of thumb is to work only with reputable partners, such as Direct Liquidation. Not only does it sell liquidation merchandise it buys itself, but it also serves as a platform for retailers such as Walmart and Target to liquidate their merchandise faster and to sell it directly to end consumers. This way you are hitting two nails on the head: the price and the quality. Buying through Direct Liquidation from retailers with such a high throughput of merchandise also means you will basically never run out of stock. Your profit margin will be boosted significantly and, you will be able to compete in any market you’d like.
If getting quality products at the lowest price is not enough to sell you on liquidated merchandise, then here is another tip to keep your costs down: buying from a location near you. Merchandise bought through Direct Liquidation is shipped from warehouses throughout the US and Canada. This means that, when buying merchandise through its online platform, you can filter the search to show results only nearest to your location.
Even if it is the retailer B-Stock that is sold through Direct Liquidation’s online platform you can tailor the search to suit you. It has to be said that retailers usually ship merchandise directly from their warehouses, which is why you will see lots and pallets offered for sale ‘as is.’ This means that the liquidation company did not cherry pick the merchandise to filter out all the brand new items in order to sell them separately at a higher price, like it is the case with wholesalers.
Another benefit is that there is a Walmart or a Target store near you for sure. So you can basically choose the one nearest to the place you live and browse merchandise on offer there. Why is this a good thing? Simple, the closer the warehouse to you the less you pay for delivery. And if you find a warehouse near enough you can even go pick the merchandise up yourself. So, tailor the search to your preferences and go shopping.
For years liquidation companies have had a pretty bad reputation. People avoided them because of the type of merchandise they sold, which was mostly customer returns, used, broken and scrap merchandise. While this is a large portion of what liquidation companies sell, a number of them have taken their business to another level, seeking ways to boost the quality of merchandise they sell. This is why the partnership between Direct Liquidation and Walmart and Target came about: the need for quality and customer satisfaction. And this is what you would get by following the simple tips we gave you.
Buy B-Stock trough reputable liquidation companies, and their retail partners. You will not only be avoiding the wholesaler’s markup, but you can also tailor the search in such a way that you keep your delivery costs to a minimum.
This will result in a healthy profit margin that will mean more cash in your pocket, better competitiveness in the market and a happy customer base that will be returning to your store for more merchandise.
Direct Liquidation is a goTRG company.
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Jordan currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Jordan is here to help you grow your business.
Schedule a sales callback with Jordan right now or check out his latest liquidation deals.
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