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Getting a Return on Your Investment

Returned merchandise is big business and a tremendous opportunity for small retailers of every kind.  You get practically new, name brand products at unbeatable wholesale prices.

 

11% of all purchases nationwide are returned.  Customer Returns have created a billion-dollar industry for those who know how to flip these products into profit.  Many secondary marketplaces have sprung up to capitalize on the industry, they acquire refurbished and used items and then flip them back to businesses at almost cost.

 

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Increasing Profit within the Secondary Market

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.  

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A GUIDE TO BUYING RETURNED AND EXCESS MERCHANDISE

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.

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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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Solving the Customer Returns Puzzle

creturn

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. 

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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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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 offers closeout prices on buy-backs, over-stocks, shelf-pulls, excess inventories and damaged goods purchased direct from retail vendors and manufacturers. Single category loads consist of “as is” products no longer sold at retail. A load generally consists of one of the following categories

Furniture
Domestics
Tools/Hardware
Apparel
Cookware/Bakeware

  Electronics
Rugs
Appliances
Power Wheels
Seasonal Specials

JacobsTruck

JTC also offers loads of Sporting Goods, Furniture and Toys. They supply a variety of outlets to include flea markets, surplus stores and auctioneers.

By visiting their website you can locate their distribution facilities strategically placed across the country. Whether you would like to purchase general merchandise loads or single category loads; a truckload a month or twenty loads a week, Jacobs Trading Company can accommodate your needs.

For more information about Jacobs Trading or for any other questions you might have, give them a call. You can CALL AND ASK FOR OUR THEIR SALES DEPARTMENT AT (763) 843-2000

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Get up early and head over to the Flea Market.

Flea Markets! Flea Markets! And more Flea Markets!

Flea Markets and the wholesale industry go together like peanut butter and jelly.  There is an enormous vendor population that derives their goods directly from wholesale suppliers. This relationship has continued to grow more and more over the last decade.  Many consumers have taken to Flea Markets looking for the very best deals, even to buy the kinds of items we consider to be staples.  Long gone are the days when you only visited a Flea Market looking for that long lost antique, many arrive looking for everyday items, clothing, shoes, fashion accessories and the like.

fmarket

With the popularity of markets increasing so has the need to find news ones, that’s where we come in.  MyFleaMarketGuide.com was developed to provide users with quick and easy access flea markets nationwide.  In less than 3 years we have grown to become the #1 result on Google for “Flea Market Guide” trumping over 25 million other results, wow….now that’s making progress.

Our directory of markets is human edited just like GetThatWholesale.com and all markets requesting inclusion must qualify before being placed.   Markets are arranged via state and new markets are frequently added.  Location, dates of operation and market descriptions provide users with all they need to know before going.  MyFleaMarketGuide has created a pathway between the markets and our suppliers at GetThatWholesale.com.  Both would like to reach each other and now we have simplified the process. The results have been terrific and we expect big things to come from this collaboration.

So if you are looking for new markets look no further than MyFleaMarketGuide.com.  Simply choose a state and start browsing.

If you are a market owner and would like include your business please visit our Add Your Market Link.   In just a few minutes you will be on your way to thousands of new market goers, it’s really that easy.

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Black Friday is COMING on Thursday ?

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?

black friday madness

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BIG changes at Big Lots

Big Lots has reported that it’s CEO and president of the Ohio closeout retailer 61-year-old Steven Fishman would soon step down as chairman. This announcement seems directly linked to news about an ongoing investigation into alleged insider trading by Fishman.  Back in March Fishman unexpectedly and outside of his normal trading schedule dumped $10 Million worth of Big Lots stock, this did not go unnoticed and when little more than a month later that same stock plummeted by a quarter suspicions rose.  The CEO is now caught up in an ongoing criminal probe to determine if negative information was kept from investors.

The latest news reports that an Atlanta based law firm of Holzer, Holzer & Fistel filed a class action lawsuit against Big Lots, saying the company “knew but failed to adequately disclose that its consumables line was deteriorating.”  The lawsuit also claims that the company didn’t adequately inform it’s investors “that its margins and prospects were being adversely impacted by consumers making purchases of big ticket products online.”

Just what does Big Lots have to say about this?  Well, Big Lots says there is no relation to Fishman’s departure or any ongoing investigation. “Unequivocally, Steve’s announcement to retire once a replacement has been found has nothing to do with the recent (Wall Street Journal) article or criminal probe,” Charles Haubiel, Big Lots’ top lawyer, told The Columbus Dispatch. “It’s a shame that someone who has done so much good for the company and the community has to have this cloud from someone trying to tie him into an SEC investigation.”

Big Lots