When is the Best Time to Buy Liquidation Products?

As you start your liquidation business, one of the most crucial things that you’ll need to do is to find the right kind of products at the right time. Fortunately, because there is a lot of merchandise and vendors that you can choose from, you’ll always keep things flowing and the items won’t dry out as long as you sell a large variety of goods.

However, when buying these products, you must give ample attention to when you buy them as this will help you save more when purchasing wholesale liquidation products and make more when selling them to your customers.

The Ideal Time to Buy Liquidation Products

Liquidation experts who have been in the industry for several years suggest that the best time to purchase this merchandise is January. The logic behind this is simple: because it is the month when all of those days of cooking, decorating and shopping have come and gone. All the lights have come down from houses and shops and people have already started to follow their New Year’s resolution.

So now is the time for all liquidators to boost their profit by finding the best bargains. In addition, you’ll find discounted merchandise easily in January because retailers with surplus holiday inventories need to clear out their old merchandise . Here are a couple of things that you’ll need to know when buying liquidation products this time of year.

A Slower Economy Will Lead to More Liquidation Products

Even though a slow and sluggish economy will be bad for a retailer, it will be best and ideal for those who buy and sell wholesale liquidation products. If the products haven’t been sold after the holiday season, they may end up on the shelf pulls that are available for all kinds of wholesalers and liquidators. So all products that are still in the store must be sold or pulled to make room for the new spring/summer inventory.

Returns Turn into Liquidation Products

Another reason why January is the best month for buying liquidation products is that the return rates are extremely high. During this month, people often exchange polka dot ties and pink and red sweaters for the things that they really need.

These holiday returns are also perfect for your business because they are of higher quality. The merchandise is usually unflawed gifts which weren’t even worn/used more than a couple of times.

If you have been in the business for a long time, you’ll already know that the larger the inventory in the retailer’s system, the lower the price that you have to pay for your liquidation merchandise. When the post-holiday inventories are high, the prices will go down and you’ll get the best deals.

Buy Seasonal Items for Less

From the start of January to the mid, you will find truckloads of Christmas items, wreaths, lawn ornaments and other such seasonal products that are available for a much lower than usual price. Therefore, even if you think that it is useless to be stocking up on seasonal merchandise that your customers won’t be interested in it yet, you can always just store it and use it later.

Remember: the prices won’t get lower no matter how good a deal you get later. So you must take advantage of this short-term purchasing opportunity and invest it in low-cost storage. Taking this step ensures that your ROI will come later and benefit you in more than one way.

One of the best and cheapest solutions that you can opt for is to rent out or buy storage trailers to keep the merchandise safe and secure. Some of the discounts and prices that you’ll find will be best even with added storage costs because they will sell at a much higher price later.

Inventories go Down in February

If you’re thinking of waiting just a little bit longer because you think that the prices will go down even further, get ready to be surprised. Because most liquidators will buy their seasonal or in-demand products in January, the previously full inventories of stores worldwide will decrease and their prices will go up automatically.

Even though the next holiday season is far away, retailers will increase their costs because they know that their goods will be sold even for the price that they are currently offering. So even though you can buy liquidation products and wholesale merchandise all year round, one of the best times to purchase them is in January. Do a little research and ask around and you’ll find that there are plenty of deals and discounts that you can make use of as soon as the year ends.

Buying Factory Closeout Merchandise

Now that you know that January is the best month to find inexpensive and ideal liquidation products, you must be well prepared for the deals that you’re about to get. When businesses need to clear out the older merchandise to make room for newer products, they mostly offer something that is called factory closeouts.

Through these, retailers will offer seasonal goods, store closing merchandise, returns and old products that have been replaced by newer goods. These are the products that are sold at below original wholesale costs and will be ideal for any sort of liquidation business. Aside from January and holiday products, you can also find other seasonal items after summer such as bathing suits at deeply discounted rates.

Therefore, even though you should be best prepared for January as it is the best month for buying liquidation products, you should also keep a lookout for other reasonably priced items that can be included in your liquidation inventory.

To buy some of the best liquidation products, here are some things that you must keep in mind.

Create a Plan

Buying your liquidation products as factory closeout merchandise can be an extremely lucrative opportunity for your business if done in the right way. Therefore, you must take your time and think about important questions such as:

1. Where will you store the factory closeout merchandise once you have bought it?

2. What are the products that your customers like and what do you want to buy from these deals?

3. How do you plan to pay for the wholesale items that you’re buying?

4. Do you have a game plan for how you will sell the merchandise once you receive it?

5. Will you be using EBay, Amazon, Flea Markets, or Online Retail Stores to sell these products or do you prefer selling them all on your own?

Asking these important questions and others like them will help you get prepared for buying factory closeout merchandise and help you save a lot of time and energy.

Decide the Quality of Products You Want to Buy

Even though your liquidation business will have a variety of products that include returns, used, or damaged items, you must decide the kind of merchandise you are looking for when buying from closeouts. You should opt for goods that are either returned or slightly used. Buying any damaged merchandise won’t prove to be beneficial on your part because you can get much better deals on these products elsewhere.

Find Your Closeout Suppliers

There are several excellent resources available that will help you find the best factory closeout suppliers. Some of the few excellent options that you could opt for are:

1. Online resources and internet search are of two of the best and quickest ways to find factory closeout merchandise. If you joined the right communities, you will get leads about closeouts days before they take place. However, because of the fickle nature of the web, you need to take a few measures to ensure the quality and reliability of the products you get.

2. Another good resource for finding closeout merchandise are classified ads in newspapers because they have a bulk of information that may be of use to you. If you look closely into the newspapers that provide such information, you will be able to find the best deals on discounted merchandise that is exactly according to your requirements.

3. Finally, manufacturer’s outlets where you are friends with one or more salespeople are another great way to get the merchandise that you need the most. There are a lot of big and top notch companies that all have access to high-quality closeout items with discounted prices. When you know a few of the people who work in the outlets, you will know when they receive new merchandise and you can get access to some really good and amazing factory closeout merchandise.

Choose the Right Vendor

In addition to knowing the products that you should buy and how to locate the suppliers, you must also be aware of the characteristics that make a good and reputable vendor . Here are a couple of things that you should consider very carefully.

1. Always ask the vendor for references as this will help you find out if the vendor is professional enough for you to deal with. If the vendor tries to evade any of your questions or simply tells you to stop asking, take it as a sign of their shadiness and know that they can’t be trusted.

2. Check out the vendor and supplier centers in your area, such as the Better Business Bureau and SquareTrade to know more about the companies that you’re considering to buy from.

3. Before you make any kind of deal, make sure that you are fully aware of and understand the shipping charges that you’re going to have to pay. This is especially true with closeouts because you are typically the one who is responsible for the shipping costs. So take your time and look for a supplier who won’t only provide you with the best products, but will also offer good shipping costs that won’t be a burden for you.

4. The internet is your best friend when it comes to researching and finding more about the supplier. One of the best things that you can do is to find a local provider in your area and look for reviews and testimonials that have been written about them.

5. If you have already gone through the selection process and have decided on a vendor you like, make sure that you get everything in writing before signing any contracts. That way, no doubts or complications will rear their ugly heads later on. Also, remember that no matter how many promises the supplier makes, you won’t be able to hold them responsible for anything merely on what they said because written proof is necessary for all legal processes.

6. One of the best ways to make sure that you’re working with a reliable and competent supplier is to start really small and build your relationship only if you’re sure that the result will be rewarding for you.

Start Buying Closeouts

Take your time and follow the steps that are outlined above and you’ll be able to generate great revenue for your liquidation business. If you really think through your plan and go through the necessary research, you will find that buying factory closeout merchandise can be an ideal way to find quality products at discounted prices.

 The liquidation business is full of processes that take at least some time to get used to. Therefore, if you have just entered the industry and are not yet sure about the things that you must opt for, starting with factory closeout merchandise and buying them at the perfect time and from a reliable supplier will be all that you need to make a name for yourself. 

However, no matter how big your capital or investment is, always remember not to give everything to your first supplier. Instead, keep some on you in the case of fraud.

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