The Hows And Whys Of Buying Liquidation MerchandiseIn this age of e-commerce, big box stores, and retail giants, how is a small retailer to compete with the buying power of these dominant retailers and still close the doors at night with a number in the black and not the red? The answer may be easier than you think: Liquidation.
Profit margins multiply when liquidation merchandise is purchased for pennies on the dollars. But how do you know if you are buying the right product from the right supplier and at the right price? To get to the bottom of this, you probably need to understand the definition of liquidation. Liquidation merchandise can include several categories of product. By knowing and understanding these categories, you can optimize your profits and reach your target market more readily.
* Seasonal products. This is the product that didn't sell during the after Christmas sale (or any other holiday, season, etc.) It is normally in new condition but quantities can vary.
* Product from store closings and bankruptcies. We have seen many large retailers close their doors over the last year, leaving large inventories of new product to liquidate.
* Returns. Usually these are gifts or purchases that were duplicates, the wrong size, over-purchased, etc. and are new(ish) but since the box may have been opened they can no longer be sold as new.
* Obsolete. These are products that have been upgraded, are no longer being manufactured, or could be outdated. This is new product but may not be the latest and greatest, think cell phones and electronics.
* Salvage. This product may be broken or damaged. Check with the supplier for more information.
* Job Outs. This product did not sell in its original retail setting.
So where does one buy liquidation merchandise? Do your research and try to always buy directly from the original retailer or manufacturer and not through a third party liquidator. Find a supplier that is well known in the industry for liquidating high quality merchandise at maximum savings. Of course, you also want to pay close attention to consumer trends, the national and regional economic status, an any industry announcements.
One great option for finding such buying opportunities is B-Stock Solutions. b-stock sourcing liquidation is not a liquidator, rather they enable large retailers to sell to a larger buyer base.