What Should You Know About Liquidation Merchandise

You have been looking for a new source to stock up your online sales business from and have come across online liquidation companies as a possible new source of goods. It is easy to understand why such companies would catch your eye.

Prices of the merchandise offered are well below wholesale, meaning you’d be able to keep up with the best online sellers and still make a significant profit.

But to make the most of such a source, you need to know where liquidation merchandise comes from and what you may expect if you decide to start stocking up through liquidation companies or their online outlets.

Why Does Merchandise get Listed by Liquidation Companies?

There are a number of ways merchandise ends up listed by a liquidation company. For example, when a company closes down or a store is moving to a new location, merchandise left unsold usually ends up being packed into pallets and sold in bulk. For the business owners that are moving to a new location, it is easier to liquidate merchandise left in the store than to pack everything up, move it to a new location and unpack it again there.

Even if the business is not closing, there might be merchandise that did not sell for some reason, but the shop owners need space for new merchandise coming in. Usually, some stock gets liquidated to free up shelf or storage space for the new merchandise coming in.

This is where liquidation companies or liquidators come in. The top tier liquidators often have exclusive contracts with retailers and manufacturers to take the stock to be liquidated, sort it and get it ready for quick sale by the pallet or lot. Liquidators don’t own the merchandise sold, but for a certain fee act as a bridge between retailers or manufacturers and the end customers. This way, the retailers and manufacturers don’t have merchandise taking up space in the store or a warehouse and the sale of the merchandise is being taken care of by another company.

This happens in the case of seasonal goods or when a global brand releases a new smartphone model and the old products are sold at largely reduced prices or even liquidated.

There is another type of merchandise that can be found listed by liquidation companies. These are customer returns and refurbished items. It is not so uncommon for the product to get returned back to the seller, in fact, over 30 percent of products sold online get returned.

These products will usually be listed as the cheapest options, but not because of the low quality. In many cases, these products get returned unopened and unused, because the seller has shipped a wrong product, or a wrong size or color product and the customer simply sent it back. While the item is not opened or used, it can’t be re-sold as new, but has to go into the refurbished/returned merchandise category.

However, doing your research right and dealing with only the top liquidators could make your choices easier when it comes to refurbished merchandise or customer returns. Top liquidators ensure that the products they sell are reviewed, their condition is rated and they are sorted properly before being offered for sale. In addition, there are strict requirements when it comes to the quality of products listed for sale by top liquidation companies. This ensures quality, which is often backed up by a warranty from the manufacturers and the liquidators themselves.

When it comes to overstock and real liquidation merchandise, it usually comes with price tags still attached, meaning it is brand new. And refurbished items come with a 90-day warranty.

Buying and Selling Liquidation Merchandise

Liquidation merchandise can be sold through wholesale suppliers who buy truckloads of liquidation merchandise and then sell it in smaller chunks, like pallets,  for a profit.

However, as mentioned above, liquidators have found a way to work around the middle man, offering exclusive contracts to retailers and manufacturers that can directly sell their liquidation merchandise through liquidation companies.

If you are looking to start a business buying and reselling liquidated merchandise, buying from top-tier liquidators is probably the best way to go, especially if you are running a small-scale operation from the comfort of your home. If you plan on running a large operation, contacting the manufacturers directly is probably a better choice.

However, if you plan on buying refurbished laptops to sell them online, checking out liquidation websites and purchasing lots of refurbished laptops could be a sure way to secure a hefty profit. Maybe your goal is to sell clothing or home decor items; there should be a liquidator offering that type of merchandise, if you look hard enough. Whatever your choice, we have set up a guide to lead you through every step of the process, giving you the best chance of running a successful business.

When it comes to buying, all you have to do is find the right liquidator, source the required merchandise and close the deal. If you follow the steps from our Ultimate Guide to Selling on Amazon, you will end up getting either brand new merchandise, or refurbished products of high quality below wholesale price.

Selling such merchandise on online platforms can be a good way to create an additional stream of income as these products give you a bigger profit margin and enable you to stay competitive in a tough online sales market. The electronics market, where your refurbished laptops would fall into, is probably the most competitive one, even for seasoned sellers, but this does not mean you should stay away from it.

It has to be stressed that you should look for the reputable liquidators to work with as they offer the best services and guarantee top quality merchandise. Otherwise, you are running the risk of ending up with faulty, damaged or even broken products you would not be able to sell.

Share on social networks

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.