Finding Online Wholesalers: Stocking Your Store for the Lowest Prices
Staying competitive on online platforms like eBay and Amazon is getting more and more difficult as prices of items sold on the websites are getting closer to wholesale prices. This is already giving you headaches as you are struggling to find a reliable source that can provide you quality merchandise for a price that will keep you competitive.
You already have a steady influx of wholesale merchandise due to your relations with wholesale suppliers, but the profit margins are shrinking and you are considering the option of changing your sources. Buying wholesale merchandise online is certainly a good way to stock your store, but which of the available options is the one that suits you best?
Here is an article showing you several types of wholesale suppliers and several options that you can choose from.
Options for Stocking Your Store for the Lowest Prices
There is an array of wholesale suppliers you could use as sources for your merchandise, all depending on the type of merchandise you would like to buy and sell. But it is not only the merchandise that is the factor. The price you are buying it at plays the largest role. It all boils down to who has the better offer for the same product.
Usually, wholesale suppliers were the way to go, but whether you are using the drop shipping method or you are working with a specialty wholesaler, the prices are still not as low as you need them to be. This is because wholesalers will buy merchandise before they sell it on to you with a markup. So if wholesalers can buy at a lower prices, so should you.
The truth is wholesalers bring you the merchandise straight from manufacturers. This is usually hard to accomplish for a small buyer because manufacturers have high requirements when it comes to a minimal amount of products you have to order. Smaller buyers usually can’t comply with this. Some wholesalers have their own products, while others buy from retailers that are liquidating overstock pallets and other surplus merchandise. They simply turn up and snap up products by the truckload.
So could you also buy the same products, like shelf pulls from your preferred retailers? Yes, because over the recent years, liquidation companies have started providing an online platform for the likes of Walmart and Amazon to liquidate their wholesale pallet lots.
This means that now, instead of paying the wholesaler’s markup, you can go directly to the retailer and buy your wholesale merchandise. There are plenty of options here as well. You may be interested in buying Amazon returns or maybe you’d like to snag some Walmart pallets of surplus merchandise. Now you can, everything at your fingertips, courtesy of liquidation websites.
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Now, before you go online and start buying cheap wholesale electronics through the first online liquidation auction website you find, there are some things you should consider. Make sure you research your source. Only deal and buy from reputable liquidators and those that have happy customers returning to buy from them on a regular basis. If you do things right, there are plenty of benefits to enjoy.
Benefits of Buying Through Liquidation Auctions
In comparison to buying merchandise through your wholesaler, liquidation merchandise comes at prices below wholesale. That is the first and probably the most important advantage of liquidation platforms over wholesale suppliers.
If you think that the liquidation merchandise is not of such a high quality you should think again, because although surplus inventory, refurbished merchandise or bankrupt stock ends up being sold at liquidation websites, the benefits of buying such merchandise are plenty. Also, if you work with a reputable liquidation company, you are getting top-quality merchandise. It is no wonder that such merchandise is gaining more and more popularity among online resellers.
Items are sold in bulk through these liquidation platforms, which means your stream of supply will not change. What will change is the price. You will still be able to keep your routine, buy in bulk for resale with one major difference: your efforts will be rewarded adequately. This is not to say that you should buy the first liquidation pallet you come across, there are certain pitfalls you should try to avoid.
The main worry, when it comes to buying liquidation merchandise is that pallets you buy can include refurbished and returned items. You have to know that over 30 percent of items purchased online get returned to the seller. But this does not mean an item is faulty. This usually occurs when an order is misplaced, or the buyer orders wrong, meaning returned items in many cases are actually new.
Stocking Your Store with Refurbished Merchandise
The same goes for refurbished items. Top liquidation auctions work exclusively with top retailers and manufacturers. When they are putting refurbished items up for auction, it means that these items have been refurbished by the manufacturers.
The refurbishing process is strict and any electronic items that are being refurbished need to pass a number of tests. This ensures that the item is as good as new, literally. If the item is not refurbished by the manufacturer, top liquidation companies usually have dedicated departments that receive the merchandise, unpack it, refurbish it, test it, repackage it and get it ready for shipping.
The same goes for retailers. If you are interested in Amazon return boxes, you should know that there are dedicated departments checking over the merchandise, and the confidence in their job is displayed by new money-back guarantees and warranties often longer than the initial one given when a product is first sold. On top of this, you are given at least a 90-day warranty on any of the products refurbished by the liquidator.
How Liquidators Help You
In addition to the prices and quality, the items sold at liquidation auctions are sorted into specific pallets, meaning you only get the item you are looking for and not a pallet of wholesale electronics that can range from old cd-players to smartphones. You are often bidding on a pallet of one type of product. Each pallet comes with its own manifest, a list showing what is inside the pallet and in what condition it is. There is a grading system you should learn in order to buy only top quality merchandise.
An additional benefit of the liquidation platforms and these types of companies, in general, is the fact that they have a vast network of distribution centers. Setting your parameters right, you can end up eliminating the delivery costs completely, which will give you an even bigger profit margin, and put a huge grin on your face. So the question you should ask first is, ‘is there a liquidation store near me?’, or a distribution center.
To get the best possible profit margin, you must buy items very cheaply. Liquidation auctions present probably the cheapest way of getting quality merchandise. So next time you go looking for a stock for your online store, find a reputable liquidation auction site and start bidding.
Direct Liquidation is a goTRG company.
Kersten works as a sales representative for Direct Liquidation helping businesses to source liquidation inventory from the world’s top retailers and manufacturers. Kersten works with single pallet, LTL and truckload buyers hand in hand to ensure their businesses stay stocked up with the highest quality merchandise year round.
Schedule a sales callback with Kersten right now and find out how he can help your business profit with liquidation merchandise.