What to look for when sourcing returned an excess merchandise.
(aka: how small store owners and resellers can bank on the busts of retailers and manufacturers)
Around $440 billion worth of merchandise is returned each year – a lot of which can’t go back on the shelves. But one retailer’s headache is another’s opportunity, and for online sellers, independent retailers and resellers, there has never been a better time to source returned and excess merchandise on the secondary market.
So, how do you navigate the secondary market to successfully sift through the bad and the ugly to get to the good? Here are some tips on what sellers should look out for when sourcing customer returns and excess merchandise:
It’s best to buy directly from the source
By purchasing directly from the retailer or manufacturer you can assume that there is no middleman involvement and no price mark up. Historically, it has been difficult for small to medium sized buyers to buy excess inventory directly from large retailers and manufacturers; however, today there are new, efficient systems that automate the manual work otherwise required for them to sell to larger buyer groups. One such tool is an online auction marketplace platform. These marketplaces provide a level playing field for all buyers to compete for the inventory, and they enable a direct relationship with the source via a transparent platform. Because they eliminate all negotiation over price, it is just as easy to have thousands of buyers involved as it is to manually sell to just a handful.
Source online from reputable sellers
Independent retailers, online sellers and resellers can often source inventory more affordably and efficiently by tapping into online auction marketplaces that sell returned and excess merchandise. There are numerous benefits to sourcing this type of product online including: greater product availability, detailed product descriptions, bulk quantities at your fingertips, shipping options, and a quick sales cycle. The key is to make sure you are buying from a known brand: many top retailers like Wal-Mart, Target, Costco and Best Buy have their own liquidation marketplaces while others leverage multi-seller marketplaces like B-Stock Supply or Liquidation.com. In the case of multi-seller marketplaces, be sure to use one that has a seller rating system, so you know you are buying from a reputable seller.
Purchasing inventory via these online-auction liquidation marketplaces can be a great way to secure inventory at an affordable, in some cases rock-bottom price, ensuring a better profit margin for you.
Continue reading A GUIDE TO BUYING RETURNED AND EXCESS MERCHANDISE
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.
Continue reading Secondary Market, the Road to Profiting in Wholesale
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.
Continue reading $280 Billion Discount Trade Industry Is Experiencing A Major Shake-Up
FOR IMMEDIATE RELEASE:
California show tipped to be biggest and best yet!
Summary: The 10th Anniversary BIG Industry Show will take place at the Los Angeles Convention Center on January 19-20, 2017. This show will provide a unique forum for connecting investors and new businesses in the fields of smoke, glass, vaping and growing.
Having already conquered Las Vegas, Denver and Miami, the BIG Industry Show is heading to California for the first time in 2017 for its most spectacular event yet. The 10th anniversary show will take place at the Los Angeles Convention Center on January 19-20, 2017.
Presented by Buyers Industry Guide, the BIG Industry Show is one of the most hotly anticipated events each year for business professionals with an interest in the 420 industry. Delivered in partnership with the High Times Business Summit, the show will feature four events in one, with sections focused around smoke, glass, vaping and growing.
Continue reading 10th Anniversary BIG Industry Show to kickoff 2017 in style!
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.
 Continue reading GetThatWholesale launches new VAPING Category
We are very proud to announce a new look and functionality to our sister site MyFleaMarketGuide.com. The country’s largest browsable collection of flea markets, antique shows, and farmer’s markets just got a lot better. (if we do say so ourselves) We streamlined the search, added new functions, and made it easier to find the […]
The name says it all. The all new High Voltage Detox XL SHOT is a product that end users have been waiting for, a 2oz Liquid Concentrate with 12 capsules loaded with Vitamins and Herbs that is GUARANTEED to work. XL SHOT is currently offered in two flavors (Blue Berry and Blazin’ Cherry) and […]
Reasons to Attend
No matter how small your retail business may be, the benefits of attending a trade show sponsored by vendors or industry associations far outweigh any reason not to attend. These conferences have been developed in order to give retail owners, buyers and managers the opportunity to meet existing suppliers, conduct business meetings, network with others in retail and investigate new products.
If you’re currently struggling to operate your business with few to no employees, chances are you may feel like you don’t have the time to attend a trade show. Consider hiring temporary help, asking family to assist or simply plan to close shop for a day in order to attend the trade show.
Once you’ve decided to attend the trade show, you’ll need to plan ahead. To get the most from attending a trade show, you should have a strategy. Knowing what you would like to accomplish before, during, and after the show will help maximize your time. Here are some trade show planning tips:
Pre-Show Planning
- Avoid the confusion at the show by pre-registering.
- Have a goal of what you want to accomplish, such as which vendors to visit, what items you need to purchase, what seminars to attend and which new product lines you’d like to see.
- Know your inventory needs before the show. More efficient purchasing will save you money by grouping your orders to take advantage of discounts and special offers, as well as keeping you within budget.
- Set appointments with any vendor you’d like to meet with during the show.
- Plan to bring any employees who would greatly benefit from attending the trade show. Continue reading Maximize Your Trade Show Time
We welcome you to be part of the CHAMPS East this May 24th-26st at the Atlantic City Convention Center. CHAMPS East provides an exceptional environment for retailer and distributor to meet manufacturer and wholesaler. The East Coast is a home to an array of cultures, the cities of skyscrapers. Shops on the […]
Live in Flip Flops Launches a New Flip it Calendar
Just in Time for Spring; Flip it…and Get Organized!
Northeast Florida business owner, Lou Ann Davis, has just launched a third calendar in the Flip it series; Flip it…and Get Organized – Tips to Lighten Your Load and Flip Your Day!
Similar to the first two “perpetual” calendars in the Flip it series, Flip it…and Get Organized is bursting with 366 daily messages and can be enjoyed beginning ANY day of ANY year. What makes this Flip it particularly unique is the focus on one area of the home each month, offering cost-conscious, time-saving tips such as “Razor blade sharpness will last 10 times longer when blades are dried thoroughly after each use,” “Place an old bookcase in a closet for instant shelving,” “When loading the dishwasher, group forks, knives and spoons in the same compartment, making unloading utensils a snap,” and on July 3rd, “The power of a list is not that it reminds you of what needs to be done, but instead, it frees you to forget.”
Each Flip it…and Get Organized includes a built-in easel stand and can be adorned with a miniature flip-flop charm, adding a colorful dimension to this daily “de-clutter and get-organized” guide. These signature charms can be custom-made to match a particular décor or add a pop of color to signify your favorite team or school.
Continue reading Flip it…and Get Organized!
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