Whenever someone mentions liquidated merchandise, buyers tend to scatter and run away. This is because liquidate merchandise used to be synonymous with used, broken or even scrap merchandise. And even though things have changed recently, the majority of merchandise sold through liquidation companies are customer returns and end-of-life merchandise.
But before we look further into the change that happened recently, let’s briefly go over the traditional channels for buying home improvement, tools and hardware merchandise in the United States.
While this article focuses on the home Improvement, tools and hardware liquidated returns we have to mention the traditional sources and channels you would get your merchandise through.
The first is buying from a retailer. If you are the end user and you would like to buy single items not very often this is probably the most convenient way. If you are, for example, a construction worker and you have your tools upgraded or replaced frequently, then this option is not for you. Instead, you should look to buy wholesale, and also work out a deal with the wholesaler, or a group of them to provide you with the equipment you need. This will turn out to be cheaper because buying in bulk at wholesale prices is cheaper. But then again, if you are someone who would like to buy and resell the merchandise, even this option may not work for you.
If you look at the prices on any of the online marketplaces, such as Amazon, you will find that prices of single items are bordering those you pay wholesale. Looking at it from a business perspective, the profit margin you are able to achieve, despite working with a number of wholesalers and despite having certain ‘loyalty perks’, barely allows you to stay afloat. It may be worth considering whether the small profit you are making is actually worth your time and effort.
Now, knowing that liquidated merchandise is sold at rock bottom prices, it makes business sense to buy this kind of merchandise, but is it really as good as it sounds?
If you are in the first category we mentioned above you can still benefit from buying liquidated returns as the price is a huge selling point and it is well below wholesale. So maybe instead of buying merchandise when you need it, you could make one large purchase in a year to get all the items you need, be it tools, or other home improvement items.
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If you are in the second category, you are already buying in bulk, so why not save some additional cash and buy liquidated returns to help you boost your profit? And if you are buying to resell, this is ideal for you. The profit margin you can generate by buying through a liquidation company or a platform is significant as prices are well below wholesale. This allows you to stay competitive in any market and earn more for the same amount of effort you put in.
As the title itself says, you are looking at liquidated returns, so the obvious place to look are the liquidation companies. But, before jumping online or into your car to drive to the first liquidation company you see, you first need to do some research.
There are plenty of liquidation companies online that open one day and then close the other day because they are run by scammers, so make sure you do your research properly and look for reputable companies that have been in the business for a while and who will provide you the right products and services. The best guides to use are customer reviews. If a company’s customers are satisfied, the risk of buying bad products is reduced.
One of these reputable companies is Direct Liquidation, which provides a wide range of liquidated merchandise as well as home improvement items. In addition to rock bottom prices, you can also reduce your delivery costs by choosing from Direct Liquidation’s many distribution centers the one closest to you. As as result, this will slash your overall purchase costs.
So far, this may sound a bit too good to be true. So you may be wondering if there is a catch so is there a catch, if the quality is compromised when buying from liquidation companies.
This is definitely something you should always look at, and one of the reasons Direct Liquidation should be your partner of choice. But before we talk about quality, let’s first talk about customer returns.
Direct Liquidation serves as an online platform to a number of retailers to liquidate their merchandise. The larger the retailer, the larger the throughput, which means there is a higher chance of products being returned by the buyer. Products can be returned for a number of reasons, and the generous return policies that retailers have play into the hands of many buyers.
When a product is returned, irrespective of its condition (and a significant percentage comes back in its original packaging, unopened) it can’t be sold back as new, and has to be liquidated. Retailers then pack things up into pallets and sell it at reduced prices. Usually, wholesalers turn up and buy truckloads of this merchandise, mark it up and then sell it on to end customers.
But retailers realized that they can liquidate even smaller lots and pallets of merchandise by using Direct Liquidation’s online platform. One of these retailers is the home improvement specialist Lowe’s.
When it comes to quality, Direct Liquidation and Lowe’s are pretty much household names and they cherish their reputation. This means that they are doing their best to keep that reputation up and provide their customers with quality merchandise.
It has to be said that some of the merchandise is sold ‘as is’. This means it has not been reviewed, refurbished or tested when returned. These are the lots with the highest risk, but are also the cheapest to buy. One fully functioning, or brand new item in that pallet can cover your whole investment or even make you a profit.
In any case, when buying through Direct Liquidation, you always have access to each pallet manifest. This is a list showing the type, the quantity as well as the grade of the merchandise. This means you can always check what you are buying and in what condition the merchandise is in. You could essentially buy brand new items with an extended warranty and 30-day money-back guarantee at prices below wholesale.
This means that you can make sure you only buy quality merchandise by going through the information provided by the liquidator. All in all, liquidated returns could be your next best source of home improvement, tools and hardware in the U.S.
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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