I’ve been reading through your site, and searching the internet for information about the liquidation industry. I have stumbled upon a lot of negative information relating to purchasing customer returns and other types of excess merchandise. I am still willing to try and make a go of buying this type of inventory, but I want to know how I can lower my exposure to a potential loss either from damaged merchandise or a fraudulent broker. Any suggestion would be great. I am based out of Texas and plan on reselling merchandise on eBay. Thanks for your time.
I totally understand where you are coming from; if you have read through our site you have heard others express the same concern. I, first had, have had the pleasure of losing money buying wholesale liquidation merchandise. There are a few things you can do to offset potential losses, and I applaud the time you are taking to research before buying!
Visit the merchandise source: If you can find a wholesale liquidator who is located close to your home, by all means, pay them a visit. Touch the merchandise and ask as many questions before making a purchase. Be cautious of a salesperson who will tell you that you should expect a certain amount of damages when buying any one lot or pallet load. There is literally no way of knowing beforehand what the damage ratio will be. Those that have been buying pallets ongoing will tell you that ever pallet is different. There is no consistency.
Order small lots or pallets first: I am an advocate for ordering big to save on freight expenses, but if this is going to be your first order….keep it simple and small. A small order gives you an opportunity to test the waters, so to speak. The initial order is great for evaluating merchandise quality and gives you a good idea as far as what to expect when buying liquidations.
You did not express what kind of merchandise you are thinking of buying? If you could email back and offer a few more details, I would be happy to offer additional information that will be helpful.
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