A common misconception among e-commerce merchants is that they can make a fortune by purchasing liquidated products at rock-bottom prices and reselling them on their sites. In reality, the seller is the one who may experience losses due to hidden fees and complications.
You should think carefully before diving liquidation pallets near me into the murky waters of buying liquidations. All sales of liquidated goods are final.
Products that have been liquidated come from a number of different places and are sometimes referred to as "secondary market goods" to make the whole thing sound more positive. Factory overruns, unsold models from the previous year, unsold returns, secondhand goods (such as laptops) that a school district or business is getting rid of, incomplete or damaged scratch-n-dents, etc. The idea is that if something is being liquidated, the person doing the liquidating couldn't make a profit selling it at retail.
In and of itself, that should make you wary
There are a plethora of websites dedicated to promoting sales. Regardless of how trustworthy a given website may be, it is not in charge of conducting the actual liquidation sales. They don't even bother verifying that the liquidators advertising on them are legitimate businesses. Responsibility for avoiding financial loss in a purchase transaction rests squarely on your shoulders. It's simple to accumulate useless items and fill an entire garage with them if you're not careful. If that's the case, then what's the point of even considering liquidated goods?
You can acquire some excellent bargains at liquidation pricing, it's true. The nature of these transactions means that you can rarely count on getting more of the same liquidated goods. That is to say, you can't have your entire online business revolving on these items. Thus, they are typically used as "loss-leaders" by internet retailers. A loss leader is an item that is sold at a deep discount as a "special" to attract customers into a business so that the higher-priced items can be shown. Some factors to keep in mind when looking for and selling liquidations:
Maintain Your Presence In The Market
Buying a liquidation lot of computer monitors is a waste of money if you run a website selling small kitchen items. It's important that the clearance items you offer be consistent with the rest of your inventory, or else your site will look disorganized and unprofessional. The products, which you should use as loss-leaders, should be as similar as possible to your regular, full-price line of products.
Verify your references
Don't rush into buying something from the first liquidator you come across just because of the low price. Sure, quality liquidation lots can go quickly, but so can garbage ones, and you definitely don't want the garbage ones. Verify that the seller has provided a full contact number and physical address. Get in touch with them and inquire about the products' state. If they avoid answering your questions directly, you can forget about them. Before you consider purchasing any of the liquidated goods, make sure you have a written (email is fine) declaration detailing their precise condition.
Be prepared for a full accounting
An item's exact quantity, wholesale price, and liquidation price should all be listed on a manifest that comes with a liquidation lot. Don't simply look at the sticker price of the things in the liquidation lot you're considering purchasing; factor in all associated expenses. It's not free; you'll likely spend money on shipping, packaging materials, time spent cleaning goods, etc.
Loss leaders, cross-selling, and other strategies can help turn a profit during liquidations, but it's important to proceed with caution should your profit projections turn into a loss.
