Buying Wholesale Merchandise Online with Liquidation Auctions
Online shopping has become the norm in many countries. In 2016, 206 million people were online shoppers in the United States. This figure is expected to rise to 230 million by 2021. Over 2.14 billion people are expected to shop online globally by 2021.
Online shoppers return sometimes return the products they purchased for various reasons. The size of the item may be wrong, the specifications may be incorrect, or the buyer may have changed his or her mind about the purchase. When these goods are returned, they cannot be put back on the shelf as new. Some stores may also have products that are not selling quickly. These products are part of those that are sold at wholesale prices online.
Advantages of Buying at Liquidation Platforms
If you have visited online stores dealing with merchandise liquidation, you will no doubt be impressed by the price. The products you will find at online liquidators go for a fraction of their retail value. This means that buying from a reputable liquidation platform like Direct Liquidation gives you a much greater chance of making a significant profit on resale.
There is, however, a common belief that the products sold at liquidation platforms are damaged goods or of poorer quality. However, the fact these products are extremely popular with retailers and wholesalers immediately suggests that is actually a misconception. In fact, one of the reasons for the popularity of these goods, besides the price, is the fact that these items are as good as new.
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When buying liquidated products, you must understand the quality of the items before you place a bid. When you visit sites selling these items, you will notice some are labelled almost new, refurbished, used or they have Grades. Grade A items are top quality. Some of these products even come with a warranty. Grade B or C items have cosmetic blemishes. These faults do not, however, have an impact on the functions of the product. For example, a Grade B stereo may have a scratch or two, but it works just as well as a new one.
Online platforms have become an excellent channel for wholesalers and retailers to sell liquidated merchandise. For example, top-tier retailers like Walmart, Amazon, and Target use Direct Liquidation to sell on these items, thereby recouping some of their value and freeing up precious storage space. Besides allowing retailers to get back the money they invested, this way of selling has opened business opportunities for people interested in reselling products online.
Steps to Follow when Buying Liquidated goods
However, before you start looking for liquidated merchandise, it is best to learn more about your target market and your potential clients. Are you looking for clothes, electronics, jewelry, or houseware? Which products will you sell quickly? You don’t want to buy items you will have difficulty selling because you will end up being frustrated even if the price of the items excited you.
Once you have your pick of products to buy, you should choose the best liquidation website. You should only work with reputable and well-established platforms. You need to do some research on your potential suppliers and the best way to do this is by looking up customer reviews.
Once you choose a top-tier and reputable liquidation platform to work with, you need to understand how the process works. Some products are sold in pallets where the number of items is indicated, while some are available in truckloads. For example, you may find bathroom accessories being sold in truckloads. It is best to consider the unit cost of the items before bidding. This will help you determine if you will be selling at a profit or loss.
Even if you have a list of items you would like to buy, it doesn’t hurt to go through the site. You might get ideas of things you hadn’t thought of but would be of interest to you. For instance, you may be interested in clothes but find jewelry you can sell as accessories. This may be a great addition to your store. Having various items will widen your client base and increase the possibility of higher revenue.
Once you have signed up with the website, confirmed your email and have had your mode of payment approved, you can place a bid on the items you choose. Some of the lots are open bids, while others are sealed. It is best to place a bid of the highest amount you are willing to spend. If someone bids at a higher price, you will be notified. This way, you can decide if you can afford to increase your bid or look for other products that fit your budget. However, do not go over your budget.
If you win, the item will move from your bidding page to your order page. It will also be marked as unpaid until you pay. Different sites have varying conditions of payment. Some sites may give you up to two days to complete payment, depending on the payment method you choose.
When payment has been confirmed, the items will be shipped to you. You may choose to arrange the shipping yourself, or the liquidation site can take care of it. Some liquidation websites, Direct Liquidation included, will keep you updated on the status of your goods. So, you will know when they are shipped and how long it will take before you get the products.
Advantages of Using Liquidation Sites
Liquidation sites save business people the time they would have spent looking for wholesalers selling products at an attractive price. Sometimes, the number of wholesalers is so substantive that it is difficult to decide who to work with. Liquidation sites save you from the high number of wholesalers making all sorts of promises to do business with you.
Buying from liquidation sites also saves you money. Most lots you will find at a liquidator’s website are products retailers wish to sell on quickly. This means that they are willing to sell it a fraction of their retail value. And so, you will be able to make more in profits, while keeping the price as low as possible.
If you understand what makes your clients tick, you will have an easier time selecting items that you will sell quickly and at a high price. Using liquidation sites will expose you to different types of products which will offer you the opportunity to expand your business.
Direct Liquidation is a goTRG company.
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.