Question: I’ve been reading about people experiencing tremendous problems with customer returned merchandise; I want to take advantage of low pricing, but is there something I can do to avoid damaged merchandise? I can’t take any risks with the money I invest within my business.
Answer: If the thought of damaged merchandise leaves you feeling uneasy, purchase wholesale closeout merchandise. Closeout merchandise, as defined, should be items which are new with no damages. This classification of merchandise will represent the least amount of work when purchasing wholesale liquidation lots. There should be no need to inspect all items, as merchandise will be ready to resell upon delivery to your door.
There are a couple of ways to purchase wholesale closeout merchandise:
From a retailer or wholesaler – This can be a local retail business within your area, or a wholesaler who is closing out an individual product line. In the case of the retailer, you could simply introduce yourself explaining the desire to purchase slow moving, or stagnant stock as a means to provide the retailer with cash low. Look for stores that sells merchandise similar to your inventory. Wholesalers at times will also closeout a particular product line, and this is the time to purchase in quantity! Ask about deeper discounts if you were to take all remaining stock.
From a wholesale liquidator – Purchasing wholesale closeout merchandise from a liquidator means you’re buying the same stock from a retailer, or wholesaler, but paying an additional markup – to the liquidator. Maybe the markup is worth it to the extent that you will not have to do the “leg work” trying to find your own source of closeouts?
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