Supplying Your Store with B-Stock

Over the years you have been successfully running your business selling new and second-hand merchandise through online marketplaces like Amazon. But recently you find that the competition is severely eating away at your profit margin as you try to keep up with their prices. Their businesses seem to be booming with no signs of slowing down, yet you are struggling to keep afloat. There might be some things you should change in your approach and possibly look for new supply sources.

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Changing Your Supply Sources

Since you started doing business, your supply strategy followed the traditional line: buying from wholesale suppliers. With time you have grown a substantial network of wholesalers you work with. Many have rewarded your loyalty with favorable delivery terms and lower prices. Some even inform you of incoming merchandise, putting you in the pole position to be the first to buy. There is nothing wrong with this approach. You are keeping a wide array of sources close and you can compare prices and often pick the supplier that has the best terms, or simply has the products you need in stock. This minimizes the risk of being left with no stock as you always have a source that is able to respond to your demands.

But while you have the supply and favorable business relationship, you are still struggling to keep up with the competition in one important aspect: the price. In order to compete, you have to cut into your profit margin so much that it almost makes no sense continuing with the venture. At times it seems that the effort you spent on sourcing, presenting, selling and shipping is not really rewarded with the profit level you hoped for. This is the main reason to move on.

Now, your main focus is B-Stock, which you have been able to buy through your wholesaler network with no problem. But to boost your business and the competitiveness in the market you need to find B-Stock at lower prices. Buying directly from retailers or manufacturers would be the best option, but often these sources have a very high minimum purchase limit. That is why the wholesalers turn up with their trucks and snap up everything that is on offer. You are later left to buy from a wholesaler with their markup added on.

Avoiding Wholesalers When Buying B-Stock

The solution to buying cheaper B-Stock is to avoid wholesalers. No matter how good your relationship is, there is no point in continuing with it if it is running your business into the ground. You should look elsewhere. This may have sounded a strange and odd suggestion in years gone by, but things have changed and your next sources should be liquidation companies.

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Yes, liquidation companies, such as DirectLiquidation, have grown over the years and built up a reputation as trusted and reliable partners in the business. So much so that retail giants such as Walmart and Target are joining forces with them to boost their liquidation sales.

Walmart and Target both use Direct Liquidation as a platform to offer their liquidated stock directly to smaller private buyers who can’t afford to buy by the truckload and instead prefer buying by the pallet. This is the first and most important benefit of buying through a liquidation company: you are able to buy directly from a retailer, avoiding the wholesaler and keeping your purchase price down, and your profit margin up.

Liquidated B-Stock Quality

There are a few things one has to understand when it comes to liquidated B-Stock. First you have to know what B-Stock is.

When retailers sell their merchandise, they have a generous 30-day money-back return policy which is used by the buyers very often. The products get returned for a plethora of reasons and returns often happen within that 30-day period.

What is important to note is that retailers receive the merchandise back (often returned unopened), review it and repackage it for sale again. However, due to legal regulations, these products can’t be sold as new anymore and are often liquidated. The thing with B-Stock is that the products are often in very good condition, and the retailer will slap a 3-year warranty on these products and another 30-day money-back guarantee. This means they are confident about the quality of the products.

In addition to that, liquidation companies that have built their reputation up, like Direct Liquidation, have specific contracts with retailers, requiring information and a certain level of quality from the products offered through their platform.

You are always provided with a manifest. This is a list showing you what is inside each pallet or lot, what type of items are in there, how many are in there and if the products have been graded it will show you the merchandise condition.

Additionally, retailers have their own name on the line. This means that they are looking to supply their customers with quality merchandise. This is certainly reflected in the warranty period.

Clear Benefits of Buying B-Stock Through Liquidation Companies

The first benefit has been mentioned several times already: the price. Since you are avoiding the wholesalers who would usually slap their markup onto the purchase price, you are paying less for the merchandise when buying through a liquidation company.

Also, liquidation companies will often show the products are sold ‘as is’. In the case of B-Stock, there is not much risk to this in terms of the quality of products, since we already explained what sort of products these are.

Usually this means the products have not been reviewed by the liquidator and are sold as is. In the case of B-Stock, this means the same, but the negative surprise potential is limited due to the type of merchandise.

This also means that the products have not been cherry-picked, as it is the case with wholesalers who pick the best items out and sell them separately from the remainder of the merchandise in a pallet or a lot.

Also, B-Stock purchased from Walmart or Target through Direct Liquidation is shipped from the retailers’ warehouses. This means you can choose to buy merchandise shipping from the warehouse closest to you in order to keep the delivery costs low or pick the merchandise up yourself. This will not only allow you to catch up to the competition but also leapfrog them.

Direct Liquidation is a goTRG company.

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