The Quickest Way of Increasing Your Store’s Profits? Liquidations

You are running an online sales shop on eBay but you are barely making any profit due to competition from other sellers. You are getting your merchandise from a reputable wholesale supplier, buying wholesale pallets. However, your prices are barely competitive in a market where single products are being sold very close to typical wholesale prices.

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Is there a way to increase your profits without doing a complete overhaul of your business strategy? Fortunately, yes! There is no need for a major change in the way you conduct your business. You just have to change the way you purchase merchandise.

In order to stay competitive, you need to buy merchandise at a low price and sell at lower prices compared to the competition while making a profit and maintaining quality. This can be achieved if you buy through liquidation auctions.

What are Liquidation Auctions?

Liquidation auctions are becoming more and more popular among online resellers. The main reason for this is that the prices start and end well below wholesale, despite it being an auction where there are multiple bidders for every pallet of merchandise.


However, the first thing you need to do before taking advantage of these low prices is to find a reputable liquidation auction to work with. If you work with a reputable liquidation auction, you will gain access to merchandise from top retailers and manufacturers, meaning you will be getting top quality products.

However, many argue that quality is compromised when purchasing through liquidation auctions for several reasons, one of which is that the merchandise is liquidated. People assume that this is because the merchandise was of low quality and it did not sell. The reality is very far from that assumption.

Where Does the Merchandise Come From?

To understand how a liquidation platform can offer quality merchandise at such low prices, you need to learn where the merchandise comes from. A top liquidator like Direct Liquidation has contracts with some of the largest retailers in the world, including Walmart, Target, Lowe’s and Amazon. Direct Liquidation gives these giants a platform to resell to businesses merchandise they want to dispose of.

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But what kind of merchandise is that? Some of it is brand new or very close to it. That’s because retailers don’t sell everything they order, and they need to liquidate what’s left to free up precious storage space. This means that you are bidding on items that are new, and many times still have price tags attached to them.

The quality is also ensured through exclusive contracts between liquidators and retailers and manufacturers, setting strict rules on the quality of the items that can be listed on the liquidation auction website.

Customer Returns and Refurbished Merchandise

But, of course, not all the merchandise sold by liquidators can be brand new or close to brand new. In fact, a lot of it consists of customer returns and refurbished merchandise. However, this should not worry you, because the quality is not affected. It can actually turn out to be your best option and here is why.

For most retailers, 30 percent of products they sell get returned by their customers. There are many reasons for this: online shoppers don’t have the chance to try things out before buying, sometimes orders get mixed up or the product shipped is the wrong color. So there are many reasons a product can get returned and these usually have nothing to do with quality.

In fact, many products get returned without ever being used, or with very little use. Some items get returned with packages unopened. However, for legal reasons, once a product is returned, it cannot be sold as new anymore. This means the retailer will have to sell it on at a big discount to recoup some of the value.

Retailers also have whole departments whose job is to process these customer returns. The products are reviewed and, if necessary, repaired to their original condition, and tested. This means that the products you see classed as refurbished at the liquidator’s website have been repaired and tested, usually by the original retailer or manufacturer. Alternatively, the liquidators themselves can do the job.

Manufacturers and liquidators run strict tests on merchandise they refurbish to ensure that the quality of the product as high as when it was new. Remember that these companies have their reputations to think about and the last thing they need is to have the products returned again. Their trust in the quality of their refurbished products is such that they back it up with at least a 90-day warranty.

Other Benefits of Buying from Liquidators

After all we have seen, it must be clear by now that buying from a liquidator is the best way to increase your profits. The prices are low and the quality is high. This means that you will be able to offer quality merchandise to your customers at low prices. Because you bought cheap, you can offer competitive prices and still have a tidy profit margin.

But top-tier reputable liquidators like Direct Liquidation have other advantages. First of all, you always know what you’re getting. That’s because you always have access to a manifest detailing the contents, quantities and quality of the products contained in each lot. So when you’re bidding or buying at a liquidator, you are always up to speed with everything.

On top of that, you get top-notch customer support. You can get in touch with experts that will answer all the questions you may have and help you throughout the whole process. Besides, they can also help you deal with shipping. You may have a courier you like to use, but you may find out that Direct Liquidation offers better rates. So it’s always worth it asking about it.

All of this guarantees that you’ll get good quality merchandise, excellent service, and everything for a low price. With a top-tier liquidator like Direct Liquidation, you will be able to increase your profits and make your business a success.

Direct Liquidation is a goTRG company.

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