Secondary Market, the Road to Profiting in Wholesale

Every year over half a million businesses are created in the United States.  Approximately one third of these start-ups are retail businesses.  A large portion of these businesses will focus on the “Secondary Market”. This marketplace offers great advantages and high rewards but you need to be well prepared.  Finding the right supplier to source products from is critical.

Secondary Market products consist of Closeouts, Surplus Goods, Customer Returns, Liquidated Items, and any product that is not sold after its initial manufacture. Many companies specialize in secondary market purchases and reselling.  Resellers might experience some level of unsellable merchandise in these types of wholesale orders but not always.  Retailers will be hard pressed to find a cheaper source of merchandise than secondary market items and these products can be a great way to turn a profit.

Working within the Secondary Market is more than knowing just your product niche; you also have to know how to sell products with a variety of quality conditions.  Getting creative is essential for moving not only the good products but also the less desirable ones.  A good strategy is to start small by purchasing a few pallets and working your way up to buying full truckloads.  If buying smaller loads is an obstacle, you might need to consider your source. Remember, where you get your products is just as important as what you get, especially when sourcing surplus goods.

To gain additional insight into this industry we spoke with Michael Lawrence of DirectLiquidation.com.  His company represents one of the fastest growing marketplaces for Surplus Merchandise.  

In the past, online liquidators pawned off “as is” and “salvage-grade” merchandise to buyers as the best value available in the wholesale marketplace. Product misrepresentation, low-grade items, and a narrow assortment of tier-2 or 3 brands were commonplace. The ability to purchase small loads or retail-ready products was virtually unheard of. In addition, if you were “lucky” enough to win one of their auctions you could expect a further 7-15% “buyer premium” charge for the privilege of buying their junk inventory. – Michael Lawrence

Michael went on to explain how Direct Liquidation can solve these problems, they offer buyers an incredible range of products, tier-1 brands sourced from their exclusive relationships with top national retailers and manufacturers.  Smaller loads are available so buyers can test customer demand without depleting resources.  Having an ability to test demand could be the difference between a good bottom line and a bad one.

Large liquidators buy huge volumes of surplus merchandise and returns for literally pennies on the dollar. They process and sort this inventory and make it available to the smaller buyer. Generally liquidation lots are sold “as-is, meaning there is no guarantee of lot quality and usually no return on purchase. Understandably, this comes with the deeply discounted prices on these lots, typically well below wholesale. But “as-is, doesn’t necessarily mean poor quality.  Frequently a large portion of the inventory is in new or like-new condition.  Fact is, buyers can and do make a healthy profit reselling this merchandise.

Secondary Market Wholesale Products

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$280 Billion Discount Trade Industry Is Experiencing A Major Shake-Up

GREGORY GARVIN
MARKETING MANAGER
1-855-493-0073
GREGORY@TIGERTRADE.COM

FOR IMMEDIATE RELEASE

January 27, 2017

TigerTrade B2B Platform Is Revolutionizing Global Off-Price Commerce
Ripe For Disruption, $280 Billion Discount Trade Industry Is Experiencing A Major Shake-Up

NEW YORK, NY – TigerTrade sees opportunities in global demand for bargain hunting getting bigger and faster thanks to its cutting-edge approach to international off-price retail. This technology-focused firm launched a first-of-its-kind, business-to-business (B2B) off-price platform designed to improve the speed and efficiency with which companies can sell their excess inventory to international buyers in new markets such as China, United Arab Emirates and Mexico. As simple as signing up, bidding and completing a transaction, vetted businesses and retail brands can move excess inventory across the world within a few clicks. While globalization has accelerated business-to-consumer methods of purchase, changes in the B2B off-price industry have not seen much innovation or automation – until now.

Tanjila Islam, CEO of TigerTrade, and an International Trade and Global Sourcing adjunct professor at the Fashion Institute of Technology said, “Our mission is to be the trusted end-to-end marketplace for buying and selling wholesale closeout merchandise. We achieve this because we understand the needs of our buyers, we know our suppliers.” Islam continues, “There is a ton of supply and plenty of demand, but it is currently hard for buyers to locate international sellers.” Where she saw a market need, she also saw inefficiencies.

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Hot Vapes – over 135 tasty flavors!

2016 showed incredible growth for the Vaping Industry, huge actually!!

Today we are focusing on one company that has become a go-to source for many vape retailers, Hot Vapes.  They offer over 135 tasty flavors and test their nicotine to ensure it’s purity.  Crafted at their labs in Chicago Hot Vapes distributes a wide variety of e-Cigarettes, vaporizers, mods, clearos, tanks and accessories to vape shops across the US.

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GetThatWholesale launches new VAPING Category

If you haven’t heard by now how popular Vaping has become, you might want to start getting out a bit more. The industry has growing in leaps and bounds, so quickly in fact that Vape Product Suppliers can no longer be tossed into a generalized Smoking Products Category, this industry has outgrown itself.  It’s an industry that is raining down revenue to those lucky to be involved.

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Vaporizers: The Pickaxe of the Medical Marijuana Market

The legal dry herb market is forecasted to top $6 billion in 2016, and the growth potential of this new industry is expected to be very high for years to come as more states move to legalize the herbs both medically and recreationally. Obviously this is a very attractive industry to enter, but the introductory costs for starting farms and dispensaries are prohibitively expensive.

The good news for budding entrepreneurs is that with the growth of marijuana sales, many ancillary products and services will also see significant sales increases. There’s a common maxim taught to wanna-be business owners that goes like this: “You can mine for gold or you can sell pickaxes.” This saying alludes to the fact that some of the most successful businesses are built around offering tools or supplies for bigger industries.

 

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Have you considered Stun Guns?

We get asked quite a bit about products that sell well, usually by a supplier who wants to diversify their current inventory.  If you haven’t considered Stun Guns you might be missing out on a great opportunity.

We live in a dangerous world, our loved ones cannot always be near us for protection.  There […]

Batten down the hatches – Black Friday is coming!

Some are starting to smile while others cringe…here it comes again, Black Friday.

Referred to as the creme de la creme of buying and selling, and it’s only a week away.

Adobe’s Digital Index shows that last year’s Black Friday set the bar high, with consumers spending $2.4 billion online, an almost 24% increase from the prior year. This year, according to some estimates, that spend line is increasing even more. Especially with e-commerce continuing to grow in the double digits, something it has done for several years in a row now.

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Small Business Saturday is Coming!

November 28th is Small Business Saturday.

Small Business Saturday is an American shopping holiday held on the Saturday after US Thanksgiving during one of the busiest shopping periods of the year.

First observed on November 27, 2010, it is a counterpart to Black Friday and Cyber Monday, which feature big box retail and […]

Over 40 years of success, Jacobs Trading Company

Jacobs Trading Company is located in Hopkins Minnesota, for over 40 years they have successfully solved excess inventory and customer returns challenges for American manufacturers and retailers. As a marketplace of Liquidity Services (NASDAQ: LQDT), JTC leverages a network of sales channels that serve 7 of the top 10 retailers in the world.

JTC […]

What good is a deal if no one is taking advantage?

As business owners we do a lot to prepare for the Holiday Buying Season. Stocking up on the latest and hottest products, offering year end deals and specials…the list goes on and on. None of these things matter if you are not being found, without new buyers to purchase stock we are sunk. What good is a deal if no one is taking advantage?

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