You Can Stock your Business with Liquidation Companies Cheaper than Wholesale

Tough competition at online sales platforms like Amazon, where prices are edging lower and lower each day, has seen your store make less and less profit. You are following the traditional sourcing tactics, buying wholesale merchandise from reputable wholesale suppliers. Your long-term business relationships have secured you favorable and flexible contracts, but you are still barely able to stay competitive.  If you closely observe the current market, prices of single products online are very close to wholesale, and the profit margin keeps getting smaller and smaller each day.

This is because many have found a new way to source wholesale merchandise that does not compromise quality or quantity of supply. It is an essential change that will help you boost your profits. Leaving behind your wholesale suppliers and turning to liquidators could just be the step you needed to get your store’s profits back on the right track.

How are Liquidation Companies a Better Source of Wholesale Merchandise?

Any average online reseller of wholesale merchandise will tell you the obvious difference: the price. Liquidators offer wholesale pallets of merchandise at prices below wholesale, whether you are looking to buy straight away or at an auction.    

The significant difference in price is achieved through the specific way liquidators sell the merchandise. Unlike wholesale suppliers, who buy truckloads of merchandise from retailers or manufacturers and sell it on with a markup, liquidators don’t buy or own the products offered, they just serve as a bridge between the retailers, manufacturers and end buyers.

Liquidators are a platform for both retailers and manufacturers to sell overstock or seasonal clothing quickly and empty their storage and shelf space for new models or incoming collections. This is why prices remain as low as they are, and also why very often you will receive merchandise with store labels still attached.

Another difference is that the wholesale lots offered by reputable liquidation companies are sorted, so you are able to buy a wholesale pallet of smartphones or gardening tools, without having to worry about the quality of the merchandise you order.

It can’t be stressed enough that you should always look to work with reputable suppliers, be it wholesale suppliers or liquidators to make sure you are getting the best service as well as the best merchandise.

Buying from an unreliable source could lead to a number of issues. If you consider buying merchandise such as electronics, for example, laptops or tablets, you should always stick to reputable sources. One of the signs you are working with a liquidator that cares about its reputation and its customers is the manifest that comes with each pallet of merchandise on offer. This is a list of merchandise that is within a pallet showing the type, the amount and the condition of merchandise.

If your liquidator is withholding information or the manifest is completely missing, you should skip that pallet as well as the liquidator unless you want to risk ending up with damaged, broken merchandise or complete scrap that you would not be able to sell anywhere. That would not be the boost you are looking to get for your store.

Liquidators Sell Refurbished Products: Is the Quality Compromised?

The fact is that a lot of refurbished products find their way to liquidation companies. However, this should not concern you, if you are working with a reputable liquidator.  

This is because liquidators will have exclusive deals in place with retailers and manufacturers who sell their wholesale merchandise through liquidation companies. These contracts will have certain terms regarding the quality of the products that can be listed on the website, and the standard is usually very high.  

Although there are refurbished products, overstock, and even customer returns, top liquidators will only offer high-quality merchandise.  

The fact is that over 30 percent of products purchase online get returned. The other fact is that many of these products get returned unopened and are basically new, but the seller cannot list the product as new anymore and it has to be sold as refurbished.  

Even the products that get returned because of faults pose no reason to stay away from liquidation companies. Manufacturers and even liquidators will refurbish the products and submit them to a series of strict tests to ensure their quality which is often backed up by a hefty warranty period.  

Can You Profit with Liquidators?

Before we sum up all the pros you are getting by purchasing wholesale merchandise we urge you to go through our Ultimate Guide to Selling on Amazon, which will help you set up your business in such a way to best use all the advantages of buying wholesale merchandise. The step-by-step guide dives into detail of what we mentioned above and if followed properly it has a great positive effect on your store’s profit.

The first link of your chain is the sourcing, which now becomes easier and cheaper. Cheaper merchandise leaves you a larger profit margin. In addition, reputable liquidators boast great customer services as well as shipping options that keep your costs very low. This will not only increase your profits but it will reflect on other aspects of your business as well.

You will be able to earn more while staying competitive, and selling quality merchandise. Combined with quality customer service you have to provide, you will build a base of happy customers. This will result in positive reviews and a boost to your reputation as a reliable seller.

So, buying liquidated merchandise from a reliable source will not only lower procurement costs and increase your profits, but it will also enable you to expand your customer base and build a positive reputation among your customers. This is something every seller is working towards: the point when customers start returning and looking for you, and the business starts working for you, instead of you looking for new customers and working to keep your business afloat.

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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.