Sourcing Liquidations: The Ups and Downs of Reselling Them

Sourcing Liquidations: The Ups and Downs of Reselling Them

October 13th, 2011

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Liquidated products are Customer returns and overstocks at retail stores. These types of products can be an excellent channel for acquiring merchandise at rock-bottom prices. Both provide distinct advantages and drawbacks you should consider when deciding which is right for your eBiz:

Customer Returns
Advantages: These tend to be popular, in-vogue products—they were purchased for a reason. Many were returned only because the size, color, or model was wrong, and are in perfect shape.
Drawbacks: You’ll get a higher rate of items cosmetically damaged or defective. Some didn’t work to begin with. Some the customer broke or defaced.

Overstocks
Advantages: Over 90-95% of overstocks should still be in perfect condition. Many are even in their original packaging.
Drawbacks: There wasn’t enough demand for the original retailer to move these items, even at deeply discounted prices. So it might be more difficult for you to sell them as well.

Many resellers feel these are acceptable risks. When you’re buying product pallets for pennies on the dollar, you’ll likely have plenty room for a solid profit. Plus liquidated products are great for loss leaders in your store.

When selling online, it is best to look at all different channels for getting products, drop shipping, buying in bulk and liquidation. All of these channels together can result in a very profitable business.

So how do you find liquidations? In our Product Sourcing Tool at http://www.worldwidebrands.com we have a liquidaiton section, as well as liqudation auctions that you can view and purchase.

Sometimes you can also locate local warehouses that offer liquidated merchandise by the pallet load from local businesses. A simple search in your Yellow Pages would help you find them.

Creative Commons License photo credit: timsamoff



1 Comment

  1. Totally useful info, thank you very much!

    Comment by Maryrose — December 13, 2012 @ 3:10 pm

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