There was a time that the only buyers that had access to liquidation merchandise were flea marketers, salvage merchandise brokers, or discount retailers. Now that we have the internet much of this has changed because there are a growing number of internet auctioneers, eBay power sellers, and online businesses taking advantage of this opportunity as well. So what does this mean for surplus inventory buyers trying to get in on these liquidation merchandise opportunities?
Quite frankly, you as a buyer will find that there will be more competition for the same types of merchandise, as well as rising prices. But because this is expected in the market place, the prices you will charge for your liquidation merchandise will be accepted as well. You will find that there will be a whole list of retailers that will auction off their items by the truckloads on the internet, but those same buyers you are competing with will also need to make a profit, thus their prices will rise as well.
This simply means that even though you are paying more for these products, you will be able to charge more in the secondary market because of the ever increasing demand. Either way, you will experience increased profits as a result because everyone else will be paying the same prices that you are. One of the most important aspects of buying online from retailers will be to know your marketplace and the audience in which you plan to sell to. This will help you understand what the market can bear, and how much you will need to spend on merchandise.
The internet has done nothing more than level the playing field when it comes to finding, purchasing, and reselling liquidation merchandise. There are millions of locations throughout the country that need buyers of merchandise. It will be important for you as a surplus inventory buyer to realize this and over time find the sources that will work the best for your respective marketplace. It’s important to stick with the rules of the business and find legitimate sources you can deal with on a consistent basis. Building relationships will be vital in this business and it is very easy to do.
Now, there are those that feel that because the internet has leveled the playing field, they can use other practices in which to obtain product and resell it. Some of these methods are called rogue practices. There are businesses that would simply like to flip loads without ever taking possession or seeing the load first hand. Some will attempt to find loads, resell them, and come back to purchase those loads and find that they are no longer available. Some will even make the mistake of finding loads somewhere else and misrepresent these loads as the original.
It’s important not to get involved in these practices and stick with what works, and the vendors and brokers who help you stay in business. You will discover that in a short period of time you will be dealing with dependable sources that will contact you when loads are ready and profits can be made. You will always want to deal with sources that you have dealt with before, built a relationship, and trust to do real business.
Our 2020 Liquidators Guide chronicles 12 years of wholesale product sourcing experience and includes my personal black book of direct source contacts! As an industry expert, I'll share the success I've enjoyed along with the mistakes I've made buying and reselling liquidation merchandise.
If you are thinking about buying pallets of liquidation merchandise from a liquidator, broker, or direct from department stores, you need to check out The Liquidators Guide