Stocking Your Store? What Wholesale Liquidators Can Do for You
You are at the beginning of your business journey, attempting to earn some cash by selling items on websites such as Amazon or eBay, two platforms that bring a staggering 290 million unique viewers combined in the United States alone each month. This makes for a healthy reach and a large number of potential customers.
Placing a product online is not enough. You need to have a plan, find the right market, the right supplier and advertise your products in order to give yourself the best chance of success.
But how exactly can you do that, and what part wholesale liquidators or any other wholesale suppliers can play in your business? Well, here are a few tips that should put you in a good position right from the start.
What are Wholesale Liquidators?
Wholesale liquidation companies or wholesale suppliers are companies that work with retailers or manufacturers, enabling them to sell surplus inventory, shelf pulls customer returns, refurbished merchandise or even new and unopened items quicker.
To get the best experience when working with a wholesale liquidator, make sure you do your research and find a company that has acquired the best reputation. This will ensure you are getting the best service as well as the best products.
When you look at the potential that wholesale merchandise gives you, it is easy to understand why you should be working with wholesalers. When you buy in bulk for resale, you are essentially cutting down on the price of every single unit, because wholesalers will offer better deals when you buy in bulk. This reduced purchase price allows for a higher profit margin and higher potential for earning on resale.
For the most part, wholesalers purchase merchandise by the truckload and sell it on with a markup. Their sources are usually retailers like Walmart and Amazon that are looking to liquidate overstock pallets of various types of merchandise mentioned above. Some wholesalers buy everything, some focus on specific items, while others have opened up a new avenue for retailers themselves to exploit, which can benefit you a whole lot.
How to Buy Wholesale Liquidations, What are the Benefits?
You can buy from the wholesalers directly, but you could also buy through liquidation websites that have opened up new opportunities for retailers and buyers. This is something more and more online shoppers and small-business owners are doing, and here is a good reason for that.
Unlike the majority of wholesalers that buy and sell large amounts of wholesale merchandise, liquidation sites provide a platform for retailers to liquidate surplus inventory directly. Now they don’t have to deal with wholesale suppliers and can sell merchandise directly to their customers.
This gives smaller buyers the chance to buy Amazon returns or buy pallets of brand new electronics. These platforms allow retailers to advertise their surplus inventory and reach a wider, worldwide audience, which results in the same amount of sales for them only spread across a larger number of buyers.
The benefits for you as a buyer are also huge. You may have noticed that the prices of single units online are close to wholesale, which makes it hard to stay afloat, let alone make your effort worth it. Buying wholesale pallet lots through liquidation platforms means you are avoiding the wholesalers’ markup and are buying even below wholesale.
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This allows for greater flexibility when setting a price later on resale. If you set your budget right and your calculations are spot on, you should be able to secure a higher profit margin and greater competitiveness in any market.
If you are starting a small online sales business, buying through a liquidation platform is the perfect choice. You are buying merchandise in bulk, by the pallet, and you will have the merchandise delivered to your doorstep. This represents another opportunity to make significant savings on your overall purchase costs.
Both reputable liquidation auction sites and retailers have a vast network of supply centers. If the merchandise has been purchased by the liquidator, they will ship from their units. If the retailer is liquidating the merchandise directly, they will ship it from their distribution centers.
What this means for you as a buyer is lower shipping and delivery costs if you chose to purchase from distribution centers closest to you. You can probably even pick up Amazon return boxes yourself if a distribution center is in your city. This completely eliminates the delivery costs, giving you an even bigger profit margin to play with.
Buying through a liquidation auction site is similar to buying through any auction. You must research the retail and wholesale price of a single product you are interested in buying to calculate your maximum budget for the purchase. Once you have done your calculations, stick to them and never bid over your budget as that only eats into your profit margin.
Surplus, Returns, Refurbished Merchandise, Where’s the Quality in That?
This is actually the best part of buying through liquidation platforms. Wholesale merchandise is simply merchandise that did not sell at a store for a number of reasons, and needs to be sold quickly to make room for new collections. This means you are buying basically new merchandise of high quality. The same goes for a large number of customer returns, as very often these get returned to the seller unopened.
Through their exclusive contracts with retailers and manufacturers, liquidation companies ensure that the merchandise listed at their liquidation auction website is of the highest quality. Retailers will even slap on a new extended warranty as well as a full money-back guarantee if they refurbish the products upon return.
Additionally, you can always know the condition of the merchandise you are interested in buying. All you have to do is check the manifest that comes attached to every b stock pallet sold through these online platforms. This is a packing list that shows you the details about the merchandise within each pallet, including descriptions, quantity, type and the quality/grade of the merchandise, so you can pick and choose what to buy.
So, what a wholesale liquidator does for you is provide you with a healthy stream of high-quality merchandise to bid on at low prices. This will give you a significant profit margin for you to exploit when reselling the products one by one on Amazon or eBay.
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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