Wholesalers: The Advantage of Buying Stock in Bulk

When buying stock for your business you are always looking to buy as cheap as possible without compromising quality, in order to sell as high as the market conditions will allow you.

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There are several ways you can buy and resell items, drop-shipping being one of them. However, finding a buyer and then buying the product from a third party that will ship the product to your customer doesn’t leave you much, if any, room for profit, since you are probably paying retail price for the product.

However, there are ways you can get more for your money, literally. Not only will you get more products, but you will secure a significant profit margin on resale. So if you are looking to buy in bulk for resale you have a number of options to choose from, and each and every one of them has its advantages and flaws. In this article we will discuss the advantages and how to minimize the effects of potential flaws.

Why is Buying in Bulk Better?

There are several reasons for this, but it is best to start with probably the most significant one: the price. By buying in bulk you are getting a reduced price per unit. When you resell the merchandise piece by piece you then get a larger cumulative profit.

More advantages are also to be gained by buying in bulk or buying wholesale merchandise. In terms of stock, you are securing a larger quantity of merchandise. This means that, if you are running a business from your apartment, it does not take up too much space but gives you enough merchandise so you don’t have to buy constantly.

Price and convenience can be seen as the main selling points to this method of stocking up your business. Essentially, if you are running an online resale business, this is the way to go. But there are drawbacks and you should look carefully into every aspect of your purchasing methods to avoid them.

When you are buying wholesale merchandise, you have to consider certain facts. First, there are several types of wholesale suppliers and it is your job to find the one that suits you best. Some will distribute merchandise directly from the manufacturers, some will have their own merchandise, while others may be buying and selling Walmart pallets, or Amazon return boxes. You have to be careful with this sort of merchandise because it can be used or even malfunctioning.

So, before we go looking into the types of sources a piece of advice that should get you on the right path is to always look for the most reputable partner. Read the reviews browse the internet, look for customer review. If a company has rave reviews, it must mean they are doing something right.

Where to Buy Merchandise in Bulk?

There are plenty of ways to buy merchandise in bulk and all revolve around various types of wholesale suppliers. As noted above, some will even have their own production line while others may be dealing with Amazon return pallets.

However, hearing the word return pallets, you instantly think of another type of wholesale suppliers: liquidators. While you may be right in thinking that liquidators have not been the most popular source, over the recent years things have taken an interesting turn that you should exploit.

To understand why you should consider Amazon pallets, of overstock pallets by Walmart, you have to know where some of the wholesale suppliers you may have been dealing with get their merchandise. For the most part, wholesale suppliers would turn up at the retailer’s warehouse with their trucks and snap up everything there is to buy. This includes pallets of brand new merchandise, shelf pulls, customer returns, used merchandise that can be sold only through liquidation.

Retailers such as Walmart or Amazon have large liquidation departments that deal with their customer returns program. Products get reviewed, refurbished and packed up into pallets for further resale. Wholesalers would snap up as much as they can, go through the merchandise again, cherry-picking the best items to often sell individually, or to group brand new items into specific pallets that might be of your interest. Basically they are selling it to you for a profit.

There is another way, though, that is similar but better. With the emergence of the internet, liquidation companies have set up liquidation auction sites or similar platforms that allow the likes of Walmart and Amazon to liquidate their merchandise faster and reach a wider global audience. This essentially excluded the wholesale suppliers from the equation. The benefit of that is the fact that you are purchasing merchandise at prices even below wholesale.

But it is imperative that, prior to deciding what source you like better, you should carry out thorough research. Remember that you should always work only with reputable companies. These guarantee the quality of services and products. You don’t want to be part of the statistic that shows that over 30 percent of items sold online get returned to the seller.

While doing your research, you must have noticed the differences that will be discussed now. Although both sources provide cheap merchandise in bulk, liquidation auctions offer even cheaper merchandise that has been sorted by product type. When buying wholesale pallets, you are likely to get a batch of, for example, electronics, ranging from headphones to laptops.

Liquidation Auctions Sell Refurbished Items, is Quality Compromised?

The simple answer is no, and there are several reasons for this. First, many items sold online are returned to the seller unopened, but since they can’t be sold as new any more they are labeled refurbished.

Both retailers and liquidators put special focus on the quality of merchandise they sell. When it comes to refurbished merchandise, liquidation auction companies usually offer at least a 90-day warranty on any refurbished product.

Whether the product has been refurbished by the manufacturer or the liquidation company’s dedicated department, it had to undergo strict testing that ensures it is back to the top condition.

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.