How Liquidation Can Help Your Online Business
With the ease of setting up an e-commerce platform, it seems as though everyone on the planet is starting an online business. Naturally, this comes with varying degrees of success and, because the market is pretty saturated, finding the right products and keeping your customers satisfied takes an extra bit of work. If you’re running an online store and are wondering what could take you to the next level, you might want to consider investing in some liquidation merchandise.
So, liquidation isn’t necessarily what you think it is. Sure, it can mean a business is going under and needs to quickly sell off their assets. It can also mean that someone with financial troubles is trying to break even. However, in this case, it simply means that you’re reaping the benefits of a larger retailer stocking products that are either too seasonal, not top sellers, or are older makes and models. It’s a great way to stock up on brand name products without completely emptying your wallet. It does come with a few caveats, though.
Keep in mind that, in some cases, liquidation merchandise is simply products that a retailer had difficulty selling. Unless you’re willing to seize fairly thin profit margins, you might find yourself in the same boat. Also, depending on the reliability of the liquidator or wholesaler, you might find that you’re stuck with a pallet of defective merchandise and, when it comes time to process a return, you discover a clause that says that refunds aren’t accepted. Luckily, these cases aren’t as prevalent as they might seem, and the reseller community is fairly transparent about the quality of their items. This doesn’t mean you should purchase products without a guarantee, but it does mean that if you find trusted resellers or liquidators, you can take their word when they assure the quality of a group of products.
The benefits of liquidation
Think of today’s top retailers. Chances are, you’re picturing Walmart, Target, and Amazon. They’ve infiltrated the market so completely that they’re ubiquitous, even for customers who don’t buy their products. Each of these retail giants participates in the liquidation game to an extent, with a handful of them operating their own online auction houses. The nice thing about buying directly from the retailer is that their quality guarantees are usually pretty airtight, and you’re not likely to lose money on a bad pallet investment. Also, depending on the products being sold, they may be willing to sell lesser quantities, such as cases or boxes instead of pallets.
If you have customers who, let’s say, love Walmart’s seasonal products but wants them at a better price, you’d do well to invest in Walmart liquidation. These are occasional online auctions, from outdated tech (think pallets and boxes of televisions, sandisk ibi, and computer monitors) to seasonal items they weren’t able to move and don’t intend to keep in rotation. They also partner with trusted liquidators and wholesalers to move their products. Not only are you buying products that your customers adore but you’re getting them at a fraction of the price and marking them up for optimal profits. Just keep in mind that your markup can’t appear too extreme or customers familiar with the products and pricing might lose interest in your business.
Liquidation merchandise can provide massive benefits to retailers and resellers alike. It allows retailers to free up shelf and inventory space, and it allows resellers and online businesses to sell name brand goods without taking a major hit to their bottom line. Do your research first, find a trusted distributor, and watch as the dollars start to flow in.