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
One of the key strengths to a successful business in this industry is to be creative with the merchandise.
With customer returned merchandise you will see all kinds of goods come through your warehouse, everything from Electronics, Housewares, Hardware, Toys, Furniture, Clothing, Patriotic items and more. Working with customer returns is more than knowing just your product niche; you also have to know how to sell products within a variety of quality conditions. A truckload of customer returns will not only include a mixture of products but also a variety of product conditions including; new, open box, scratch & dent, shelf-pulls, and damaged items. Getting creative is essential for moving not only the good products but also the less desirable products. A common challenge that many startups have is trying to make money by focusing only on the good items without a plan for the not so good items. It can be very challenging to move products that have missing pieces or have broken parts, but you have to remember there is a recovery value for everything. Continue reading Solving the Customer Returns Puzzle
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
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
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!
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.
 Continue reading Batten down the hatches – Black Friday 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 […]
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 […]
For many shoppers Black Friday represents the absolute best opportunity to grab the season’s hottest deals. The chaos and melee that ensues upon the doorstep of big box retailers each and every year is just par for the course, some might say they look forward to the battle within the isles. Black Friday is something that truly lacks proper description and can only be experienced firsthand. This year will be no different however this year’s Black Friday is going to start just a bit earlier. I guess we could call this Grey Thursday?
 Continue reading Black Friday is COMING on Thursday ?
Habitat for Humanity ReStores are nonprofit home improvement stores and donation centers that sell new and gently used furniture, home accessories, building materials, and appliances to the public at a fraction of the retail price. Habitat for Humanity ReStores are proudly owned and operated by local Habitat for Humanity affiliates, and proceeds are used […]
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