Why Buying Wholesale Online Makes Your New Small Business Profitable

If you’ve recently started your own small retail business or you’re thinking of starting one, you might be wondering where the best place is to source the stock your business will need to sell on to your customers.

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For many years, the standard wisdom was for a retailer to source the merchandise they needed for their business from a small-scale liquidation business or from a traditional wholesaler. The arrangement worked out pretty fine for all concerned until the unthinkable happened – wholesale prices began to go up, eventually becoming almost the same as retail prices.

The results of this change have been pretty obvious for all to see. Retailers, from flea marketeers to store owners, from online electronics stores to discounters suddenly found their profit margins being squeezed as the sources of cheap wholesale merchandise they were used to began to disappear before their eyes.

So, with wholesale prices achieving near parity with retail prices, where on earth does a startup small business go to source top-quality stock that they can sell on to customers at a good price and still turn a decent profit? Well, for many, the answer lies in sourcing from a reputable top-tier liquidation specialist such as Direct Liquidation.

A Different Type Of Wholesale Supplier

Liquidators such as Direct Liquidation are different from traditional wholesale suppliers in that they provide big name retail companies such as Walmart, Target and Best Buy with an online space where they can sell their unwanted merchandise to businesses such as yours.

There are several types of liquidated stock a top-tier online liquidation marketplace can offer your business. The most common types of merchandise a big-name retailer sells through a liquidator’s site are the following.

Customer Returns

Every year, customers return vast quantities of goods to big name retailers’ stores and websites for a whole host of reasons. For example, some suffer so-called ‘buyer’s remorse’ – that feeling you get when you realize you should never have bought the item in the first place for a variety of reasons ranging from realizing you’ve given in to impulse to the financial implications of keeping a purchase. Statutory consumer protection allows a customer to return an item to store usually within thirty days, and that means stores are obliged to take back merchandise they have already sold and issue a full refund (except in certain circumstances).

The merchandise customers return can no longer be classified as brand new (though it often is, especially as far as clothing is concerned), and as big-name companies are not discount stores, this returned merchandise takes up valuable space on a retailer’s warehouse shelves.

If you’ve ever wondered what happens to returned items, oftentimes they’ll end up being sold through to businesses on an online liquidation marketplace.

Overstock

Ordering stock has never been an exact science. Ordering the correct number of units of the latest game or most sought-after gadget is a guessing game at best, which is why most retailers of the size of Target or Home Depot tend to over-order stock as a matter of course. When newer versions of products are about to hit the market, or a seasonal event such as Christmas is on the horizon, warehouse space must be found to accommodate sellable product, and that means a retailer must dispose of their overstock as quickly as they can. Overstock is overwhelmingly brand-new merchandise, though some superficial damage may have occurred during storage and handling.

Closeouts

Closeouts are lines of merchandise a retailer wishes to dispose of, usually because a season such as Christmas or Easter has come to a close. For example, stores tend to buy in more toys and video games for the Christmas period. Once Christmas is finished, leftover toys and video games are surplus to a retailer’s requirements and must be sold on quickly via a liquidation business’s website. Other types of closeouts include merchandise that a retailer is looking to offload as one of its stores is closing, or certain types of customer returns.

Great Quality Merchandise At A Price You’ll Like

All of the above-mentioned types of products must go somewhere to free up valuable warehouse space. That’s where a Better Business Bureau-accredited, top-tier liquidation company such as Direct Liquidation steps in. A liquidator provides the big-name retailers (in Direct Liquidation’s case, Walmart liquidations) with a platform known as an online liquidation marketplace through which they can sell their unwanted closeouts, overstock and customer returns to businesses including new startups such as yours.

Sold in tested or untested pallets or truckloads via live auction or for a fixed / negotiated price on a liquidator’s website, you’ll find a huge range of products in a wide variety of conditions from ‘as new’ to ‘refurbished’; from ‘slightly damaged’ to ‘tested-not-working’.

Each pallet you buy from a liquidator will contain a good mix of merchandise that hasn’t been cherry-picked and stripped of all the good stuff. This means you’ll have plenty of top-quality stock made by some of the biggest manufacturers in the world to sell through to your customers at various attractive price points.

And best of all, because big-name retailers are prepared to take a hit on price because they wish to dispose of their closeouts, overstocks and customer returns as fast as possible, you’ll find all this top-quality stock available to buy at a fraction of its MSRP value.

That low price on some of the most profitable wholesale items available online will give you plenty of room to offer your customers great prices; it will ensure your business stays one step ahead of the competition and, most importantly for a startup business, it means you’ll have plenty of eye-catching stock right from the get-go which will catch the eyes of potential customers who may well become customers for life.

Making Your Small Business Profitable

There are plenty of pitfalls and perils on the rocky road to small business success. One of the things small business retailers fall foul of is making poor sourcing decisions that leave very little room to offer attractive prices and make decent profits.

By offering your startup a chance to buy a constant supply of excellent quality stock from the biggest names in US retail at a price you’ll struggle to find elsewhere, an online liquidation marketplace can help you avoid falling into that particular sourcing trap, and help you make your business profitable. Check out an online liquidation marketplace today to see the great range of products available at the lowest prices around. And good luck with your new business!

Direct Liquidation is a goTRG company.

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Henley Johnson

Henley 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 Henley is here to help you grow your business.

View Henley’s Bio on YouTube.