How to Source Liquidation Products

If you are starting a business and looking for liquidation products to sell, you’ll need to know exactly how to source these products in the best possible way. After all, sourcing liquidation products can be challenging and there are a lot of pitfalls that you need to watch out for. 

So, you must make sure that you prepare yourself. This guide will tell you exactly how you can begin sourcing liquidation products so that your business can grow and thrive.

Decide on the Products that You’re Going to Sell

First of all, you need to decide the liquidation products that you want to sell. The objective is to look for items that can be sold off quickly but aren’t too common in the industry since the higher competition may harm your sales.

To find out about the products selling well, look for trends and then do some research about the products being sold in physical stores in your area. While deciding on a particular kind of product, make sure that it is also easily available or else you will only be wasting your time looking for liquidation products that aren’t in the market.

Find Out about the Types of Liquidation Products

Once you have decided on the product that you want to sell, make it a point to know about the different types of products that you can go for as well. Even though most manufacturers or suppliers will be willing to give you refurbished or reconditioned products, you may find some that wish to sell new or remanufactured liquidation products. The type of liquidation product that you opt for and ultimately get depends entirely on your resources and the time and energy that you spend.

Choose the Liquidation Supplier

Your selection of a liquidation supplier will depend on the kind of business that you are starting. You can opt for something home-based, online or even a brick-and-mortar shop. However, whichever type of business you decide to start, here is a list of suppliers that you can choose from.

Liquidators

The Number One choice for a lot of people searching for liquidation products is other liquidators. The best thing about the products available through this source is that they will be available to you for a reduced price as compared to the original wholesale price. This means that you will save a lot and then reinvest those savings to grow your business.

Manufacturers

A great source where you can find liquidation products is product manufacturers as they have a range of products to offer you. If you plan on selling only a few types of products, this is the best option for you because it will give you a chance to get your hands on quality products. Look for manufacturers online and ask for information regarding the products that they sell and their prices.

Distributors

If you are going for a certain type of product, for example, ladies clothing and accessories, you can consider buying from distributors because they carry a large variety of products that come from a certain category. Even though the prices they quote will be a little higher, you will be able to reap the benefit of buying products of different manufacturers from one distributor. As a result, you will be able to save valuable time, money and energy.

Drop Shippers

Drop shippers are distributors who buy either from manufacturers or other distributors but ship orders directly to your customers once they place them. One of the best things about buying from drop shippers is that you don’t need to worry about warehousing costs or manufacturing processes.

Look for Suppliers

After you have decided on the type of suppliers that you want to buy from, you should start looking for suppliers both online and offline. Talk to local retail store owners and locate the kind of suppliers that you wish to team up with.

On the other hand, you can look for websites using Google or Yahoo; just make your searches more specific by adding your location to your keywords or key phrases. Finally, you can attend trade shows where you will find vendors who come together to showcase their products and services.

Research Your Supplier Thoroughly

One of the biggest mistakes that you can make is to strike a deal with the first supplier you come across. Since there are many fake businesses and scammers around, you must conduct proper research and do your best to ensure that you team up with someone reliable and trustworthy. Some ways to check the supplier’s professionalism are listed below.

Check Their Website

No matter what type of supplier you have decided to buy the goods from, you always need to check their website. Properly managed and designed websites show the professionalism of these businesses and give you a chance to communicate with them efficiently. Don’t make the mistake of buying products from a distributor or liquidator who doesn’t have a decent website because you will never be able to find out if they are reliable or not.

Contact the Physical Address

Even though websites are very crucial for all kinds of suppliers, you must also make sure that your sources have physical addresses as well. Because the internet is full of people who only want to take your money and provide you with zero services, you need to contact them on the telephone and verify that they have an actual business. Be wary of websites that don’t provide a contact number because this will surely mean that their business doesn’t have a physical presence.

Ask for References

When you have checked the website as well as the contact information for a particular liquidation supplier, you should also ask the source if they can provide you with references. References from previous clients will help you in knowing about the quality of products and services that are provided by the supplier.

On the other hand, you can search for reviews that have been written about these suppliers. These will help you find out the good as well as the bad. Finally, if a website has listed testimonials, ask for their contacts as well for maximum assurance.

Assess Your Supplier against the Qualities of Good Suppliers

There are a few liquidation suppliers who appear professional but don’t offer the quality of services and products that you require. For this reason, it is mandatory that you know about the top qualities that are shown by a good and expert supplier. Here are some things that you need to look for when looking for someone who can provide you with quality liquidation goods and merchandise.

Competitive Prices

The first thing that you should look for in a supplier is the prices that they are offering. Even though it is fairly easier to find someone who can sell you goods for a high price, it would be best to find one who is able to offer competitive prices. Even if the prices aren’t too low or cheap, they must be according to those of the market so that you can be sure that you are not being cheated.

On-time Deliveries

Another quality that the supplier must possess is that of getting deliveries to you on time. If you are buying from a supplier for the first time, you must first make a small order and check if the deliveries reach you within the specified time. If the supplier is a few days late but is able to provide you with a legitimate reason for the delay, you can rely on them to deliver the goods on time.

Quality Products

Some manufacturers and suppliers who offer liquidation products can’t be trusted because they often provide items that are cheap and of bad quality. Therefore, if you are buying products for the first time, always check the quality of the order once it has arrived and make sure that it is according to the deal that you made. For example, if you are paying for refurbished and remanufactured products, the delivery that is provided must not be of goods that need to be fixed or repaired.

Variety of Services

Even though you are only going to buy liquidation products from your supplier, you must look for one who has the ability to provide a variety of services and cater to different businesses. If a business only supplies products to a particular industry or market, it will not have the expertise that you require. On the other hand, dealing with someone who has a lot of different clients will help you find better, quality merchandise.

Negotiations

Because all good suppliers want great relationships with their clients, they will be willing to answer any questions that you have and negotiate the terms of the agreement if needed. Questions that concern the shipping payments, time of shipping, and payment methods should be asked before you sign any agreement.

Develop and Maintain a Relationship with Your Supplier

Good suppliers are hard to find; therefore, once you place your order and there are no glitches in the delivery, you should continue maintaining the relationship you had established with the supplier. That way, you can benefit from them later. With time, your suppliers will even be able to give you reduced prices because you have been loyal to them and provided them good business.

Here are some tips that will help you maintain a good relationship with your chosen supplier

Keep Communication Open

One of the best things to do when you need to maintain your relationship with the supplier is to always keep your communication channels open. Make sure that you are available to the supplier as much as possible because this will show them that you are an interested customer who will always need their services.

Pay on Time

All suppliers prefer clients pay them on time. Even though this may seem a bit obvious, this is the exact opposite of what many buyers do. The main reason for delays in payment is because they may like to negotiate the payment while the supplier is not ready to give any discounts. Here, you must always make it a point to negotiate the payment and other such terms before you place an order. Once you have placed an order, don’t attempt to change the rules as this will cause a rift between the two of you.

Personalize

In order for you to have a healthy and long-lasting relationship, you must personalize it. There are several ways you can achieve this goal. You can visit the supplier’s offices, include them in your meetings or ask them to meet you for an informal and casual lunch or dinner.

Share Resources and Information

A good relationship can only be built on mutual grounds. This means that if the supplier is providing you with good quality products and merchandise, then you too must be able to keep them aware of what is going on in your company. You can also share information about other liquidators or corporate friends who are looking for liquidation and wholesale products because this will help them find clients and they may even give you discounts depending on the quality of clients that you provide them with.

Give Sufficient Lead Time

Giving your liquidation suppliers adequate lead time and communicating your needs on a daily basis won’t just keep crises away, but it will also help the supplier in providing you with quality products. Aside from giving them ample time, you must also give them as much information as they require for the merchandise that you are buying.

Don’t make the mistake of making an order only a day or two before you need it because this will make it difficult for the supplier to deliver quality products on time. Even though sourcing good liquidation products can be challenging and tiring, with the right techniques and methods, you will easily be able to find suppliers that provide high-quality items at reasonable prices. 

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