How You Can Buy Pallets of Surplus Inventory For Your Business
You might have been running an online resale business, buying wholesale merchandise and wholesale pallets to resell on Amazon or eBay. However, growing competition has seen prices edging ever closer to the wholesale mark, leaving you with such a slim profit margin that you started wondering whether it is worth all the effort. You start questioning whether your sourcing strategy is the right one and whether there are sources that provide cheaper merchandise without compromising quality.
While searching for new and innovative ways to source wholesale merchandise for even lower prices, you must have come across terms such as surplus inventory, liquidation auctions or liquidation websites. It is quite understandable if you passed on the offers seen at these websites, simply because liquidation merchandise has the reputation of being the worst of the bunch: used, broken, scrap items that don’t really bring anything to the table. But the truth is that you should look into this source a bit further.
The prices offered sounded too good to be true and you were concerned by the number of refurbished items sold through liquidation auctions. This might have caused you to doubt the quality of the merchandise sold through liquidation websites. But is there really anything to worry about?
To understand the liquidation sales and how it all can benefit your business, as well as where to buy pallets of surplus inventory, you must know what it is and why you might have already been working with this merchandise without even knowing.
Where Does Surplus Inventory Come From?
Surplus inventory that gets liquidated can come from a number of sources for various reasons. If a business is closing or the store is moving to a new location, the owners usually decide to liquidate the merchandise. This is a preferred choice over the option that would see them pack everything up, move it to a new location and unpack and sort everything again. For this reason, you will see liquidation merchandise having price tags from the store still attached to it.
In addition, very often products don’t sell out completely and while they are still new and in the store, the owners may decide to liquidate some of the older models to make room for new collections. This is basically the definition of surplus inventory.
And it is not only the merchandise that was on display, shelf pulls, which get branded as surplus inventory and liquidated. You may also find overstock pallets of merchandise. These are products that never even got to the store’s shelves and have been stashed somewhere in the storage.
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So, the liquidated surplus merchandise comes in wholesale pallets, which is the same as when buying wholesale. However, there is a difference. Wholesalers buy the merchandise from the retailers or manufacturers and sell it on for a profit, while liquidators don’t own all the merchandise displayed on their website but provide a platform for the retailers and manufacturers to sell their surplus items quicker.
This is why you are able to buy Amazon return boxes through these liquidation platforms. The retailers open up a storefront on liquidation platforms and list the merchandise their liquidation departments are shedding. This means you are avoiding the wholesaler’s markup and can buy surplus inventory directly from the retailer, keeping the price well below typical wholesale.
Amazon return pallets are another form of surplus inventory you might look into. With the throughput, large retailers such as Amazon have, a large portion, especially if ordered online, gets returned to the seller. Reasons for this can vary and with it the condition of merchandise.
Some products are returned in original packaging, unopened, brand new. However, for legal reasons, this is characterized as surplus inventory and has to be liquidated. You may also find used items, faulty items but also refurbished items, which are also an interesting target for resale business owners due to their specificity. With dedicated departments, retailers bring faulty returned products back to their former glory.
The Quality of Surplus Inventory
With the mention of refurbished items, you could ask questions about the quality of the merchandise sold through liquidation auctions. The truth is that the quality of merchandise varies, but if you do your research right, you will find that top liquidators work with the best retailers and manufacturers through exclusive contracts, guaranteeing high-quality products.
While searching, you should look for liquidation websites that have been in business for a while and offer a variety of services. In addition, consumers, as much as 88 percent of them, rely heavily on online reviews, so go online and search for client reviews of any liquidation company you are interested in working with. Finding the right liquidation platform is a very important step.
Speaking of strictly refurbished items, it has to be said that there are rules in the contracts between liquidators and retailers or manufacturers that ensure that only the merchandise of certain standard can be listed for sale.
For this reason, and because having a product returned too often will cost them money, time and reputation, manufacturers put the products under a series of strict tests to make sure they are back to their best condition. It is not unusual for the retailer to offer full money-back guarantee on a refurbished product or an extended warranty to go with it. This is a show of confidence in the work that has been done to refurbish each item.
The same is done by the liquidators, who will have specialized departments that will test and refurbish any faulty items, backing their service up with at least a 90-day warranty. So, in conclusion, there is nothing to worry about if you do your research right. Rather, it is just a matter of bidding smartly and ensuring you are staying on top of the competition.
Additionally, for piece of mind, you should go through the manifest that is attached to every pallet of surplus merchandise that gets liquidated. This will show you the type, the quantity as well as the condition of merchandise within each pallet. It will also help you select only the pallets containing the products you are interested in reselling.
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.
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