If you are eager to cut down on the procurement cost to get your online resale business to the next level, you are certainly looking to shed every penny off that price as possible. There are several ways you can achieve this. One way is to source cheap merchandise without the low price affecting the quality, and the other one is to cut or eliminate delivery costs.
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When it comes to cutting down on the purchase price of merchandise, this usually means you have to buy in bulk which is one way of buying merchandise cheaper than retail. Usually, you would find a wholesaler. Wholesalers are companies that will sell you large amounts of merchandise, and often if you are a loyal customer, you get additional benefits. Buying in bulk grants you discounts and a lot of people are happy with this method.
But there is an issue. E-commerce has progressed so much over recent years that it is very hard for small businesses to stay afloat if they buy by the pallet from a wholesaler. The rule of thumb is to always work with reputable wholesalers, in order to get the best quality, and to work with a number of wholesalers to always be able to pick the best prices.
While this will get you the best wholesale prices, if you turn to the e-commerce websites, single items are sold at prices almost the same as those you paid for your merchandise, the profit margin is almost non-existent. This means you have to look for your merchandise elsewhere. But is there merchandise cheaper than wholesale, without going into used and scrap products? The answer is yes.
To understand why it is possible to buy merchandise in bulk below wholesale prices, you have to understand how wholesalers work. They usually turn up at a manufacturer or retailer and buy truckloads of merchandise that they sort, pack into pallets and sell on with a markup. This wholesalers’ markup is what you are looking to eliminate, meaning you want to buy directly from the manufacturer or a retailer.
Manufacturers are hard to get to because the minimum order requirement puts the merchandise out of the reach of a small buyer. Retailers are not as hard to get to, but as noted, wholesalers turn up with their trucks, snap up everything and you are left with scraps. But now there is a way to get to both and eliminate the markup. To do this you have to turn to liquidation companies.
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While traditionally liquidation companies have been considered the buyers and sellers of scrap and non-functioning items, things have changed. While many have worked to raise the quality of the merchandise they sell, others have ventured into other niches of the business and tied up with top retailers like Amazon, Target, Walmart of Lowe’s, to serve as an online platform where said retailers can liquidate their merchandise without having to deal with wholesalers.
By using a liquidation platform such as Direct Liquidation, retailers are able to reach a wider online audience and liquidate their merchandise quickly even though they are selling it by the pallet. Due to the amount of online shoppers, getting the merchandise out is an easy process. The best thing for an online reseller is the fact that this merchandise is sold at prices below wholesale, meaning no wholesaler’s markup and a higher profit margin.
So what if you live in Atlanta, Georgia, or somewhere around there and are looking to buy tools or any home improvement merchandise, but wouldn’t like to have it shipped from across the country? You are in luck then, because there is a distribution center that can provide you just the right merchandise pretty close by.
Let’s say you live in a small town of Palmetto, Georgia, and would like to get your hands on some home improvement merchandise or some furniture, but don’t want to pay over the top for delivery. You are in luck because in Palmetto, a city that covers the area of two counties, Fulton County and Coweta County, has a distribution center in it that can provide you exactly with the merchandise you need.
And it is not just Palmetto. The city is close to Atlanta and is near the Interstate 85, which goes northeast-to-southwest in the U.S. state of Georgia. It connects northern Georgia with Montgomery, Alabama and goes through the Atlanta metropolitan area connecting the state with the Carolinas and Virginia to the northeast. It also easily connects to other cities like Columbus in western Georgia.
Now that you know you can drive to the distribution center near you and pick up the merchandise yourself, eliminating delivery costs, let’s look a bit further into why you should go for liquidated merchandise.
Over recent years, liquidation companies and platforms such as Direct Liquidation have worked on stepping up the quality of merchandise and service they provide. As a result, top retailers took notice and are using Direct Liquidation as a platform to liquidate their merchandise. Merchandise that gets liquidated are usually customer returns, but with the throughput that top retailers are having a large amount of merchandise gets returned unopened, or gets liquidated because it didn’t sell at a specific location or during one season.
This means you can buy brand new merchandise. And even the customer returns that are now brand new get reviewed, refurbished if needed and liquidated. The advantage, next to the below-wholesale prices, is the fact that brand new and refurbished merchandise gets sold with a substantial warranty.
But if you are still not sold on the quality of liquidated merchandise, you can look further into each pallet and go through the manifest that is provided with every one of them. Manifests are packing lists that show you the type, the quantity and the quality of merchandise contained within the pallet. This way you can only buy the items you want or your customers demand. And you can also buy the merchandise of a certain quality.
While new, or near as new merchandise gets the most attention, it does come at a higher price point, and has a higher resale value. But, buying pallets of unsorted customer returns can be a risk worth taking sometimes. While you get the list of merchandise in the manifest, you don’t get the quality rating as these items have been packed up without being reviewed or refurbished.
It is not unusual for a buyer to find one single item in brand new condition worth more than what they paid for in the first place, recovering their investment in one sale and reaping the rewards with every next one. When you see that unsorted customer returns come at the lowest price point, it is often worth taking that risk.
And when you can go pick the merchandise yourself from Palmetto distribution center in Georgia, you are eliminating the delivery costs and the hit, in case of a missed purchase, is not going to be significant.
Direct Liquidation is a goTRG company.
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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 or check out his latest liquidation deals.
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