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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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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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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Sandy Hook, CT - Going about donating.

Recent events within the small town of Sandy Hook, CT have struck the hearts and souls of many Americans and others around the world.  For some making a donation is all they can do, it provides some personal relief that they are helping when help is truly needed. Continue reading Sandy Hook, CT – Going about donating.

Obama Re-election already causing closures and job layoffs

Within days of President Obama’s re-election businesses announce layoffs and even closures. “These cut backs are due to Obama’s re-election” stated one Arizona employer who reduced his staff by 22 employees.  Other businesses followed with similar actions and noted the fear of an even slower economy with no real change.  With no end in sight for Obamacare business owners are adjusting accordingly in an effort to make ends meet, unfortunately this means more people added to the unemployment lines.  These are real world consequences within days of a re-election, the fear things will continue to get worse is very real within the marketplace.

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SPOTLIGHT Your Company on GetThatWholesale.com

GetThatWholesale has launched a brand new opportunity for suppliers to market themselves to buyers. Although qualified suppliers can of course still list their company for free they may want to consider GetThatWholesale’s next level of promotion, the new and improved Spotlight Level. Unlike the free listing which includes only (1) product category and a very limited company description the Spotlight Level comes fully loaded. Best of all it fits even the tightest of budgets.

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GENCO Marketplace Introduces Easy-To-Use Website for Liquidation Lot Purchases

PRESS RELEASE

Release Date: For Immediate Release

Contact: Don Rendulic, GENCO ATC, 412-820-3922

GENCO Marketplace Introduces Easy-To-Use

Website for Liquidation Lot Purchases

Newly Designed Site Brings the Speed and Convenience of

Consumer Shopping Sites to Liquidation Buyers

PITTSBURGH, Pa., September 20, 2012 – GENCO Marketplace, one of America’s largest merchandise liquidators, has updated its website to make buying bulk liquidation lots as easy as buying items on popular consumer eCommerce sites.  The large-scale redesign project will enable buyers to spend less time sourcing liquidation inventory and more time selling and making money.

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Sourcing Wholesale 101 - NEW E-Book !!!

GetThatWholesale.com Goes to the Presses with Informative New E-Book

GetThatWholesale is putting pen to paper or should we say, keystroke to E-Book. The new book titled “Sourcing Wholesale 101” is a beginner’s guide to wholesale and will assist new comers to the industry.

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Sourcing Wholesale 101

Sourcing Wholesale 101

Quote startThe book is centered around the basics, it covers many of the most common questions, like what’s the difference between a Customer Return and a Closeout?, it might sound simple to those of us inside the industry but to others it can be quite confusing.Quote end

Bethel, Connecticut (PRWEB) August 08, 2012

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Here it comes, Internet Sales Tax PENDING !

You probably know that consumers who don’t pay sales tax when they buy a TV on Amazon.com are supposed to pay a “use tax” later to their own state governments. And you probably also know that almost no one does that. In the sparse data on use tax you’ll find, you’ll see a 2009 […]

GET Heard by literally thousands of buyers!

Wholesale.FM offers users the chance to hear professionally produced interviews with wholesale supply industry leaders, owners, and experts on a variety of topics related to the business community. Interview subjects will provide retailers with a rare glimpse behind the marketing and canned emails and really hear from the people that make up the wholesale marketplace. Recent interviews have included the owner of Sahara Smoke Co Rodney Masri as well as Andrew Levine, Founder and CEO of JADS International.

The catalog of interviews is only half of the story. Through a link on flag ship site GetThatWholesale.com any listed company will be able to record a thirty second message without cost and using no special software of their own. They just click a button and a recorder opens ready to create their message. The supplier can then review and change their message if needed before committing to it. Continue reading GET Heard by literally thousands of buyers!

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