Advantages of Buying Wholesale Merchandise from Liquidation Auctions

Buying wholesale merchandise to sell online could be a risky business if you listen to what the market analysts are saying, but only if you are not careful.

Buying wholesale pallets means you are stocking up for a longer period and at lower prices per unit. But since wholesale supplier buys large quantities of merchandise from manufacturers and sells them on to retailers and small businesses there is a small markup you have to pay. However, buying wholesale merchandise through liquidation auctions means you are avoiding the wholesalers and getting the merchandise for prices even below wholesale.

This is made possible by the top liquidators since they have exclusive contracts in place with top retailers and manufacturers that either sell overstock, refurbished items or customer returns directly through liquidation auctions.

With words refurbished and customer returns many alarms go off, however, the exclusive contracts also include clauses that place strict quality requirements on products that the manufacturer or retailers want to list at the auction.

But simply finding the first online liquidation auction and bidding on wholesale merchandise does not guarantee you success, so here are a few steps to follow to give yourself the best chance of making it in the business.

Finding the right liquidation auction

There are a number of online liquidation auctions out there but some research will help you find the right one for you. If possible try to buy merchandise from the top liquidators near you to keep the delivery costs low.

It has to be said that top liquidation auctions have their units scattered across the United States and Canada specifically for this reason.

Working only with the top liquidation auction companies has numerous advantages, from the availability of supply to the customer and delivery services.

To pinpoint the right liquidation auction for you go to some trade events, read the trade magazines and try searching online or among your peers for customer reviews that will give you the first-hand experiences with the company. Based on that your decision should be easier.

What are the advantages

The main advantage is definitely the price since wholesale lots are sold at liquidation auctions at prices below wholesale. This means that you are paying a lot less per unit which, as a result, leaves you a larger margin for profit on every product you sell online.

Having the price advantage means you are able to stay competitive in any market while making a healthy profit.

The second advantage of working with top liquidation auctions is the quality. Because of the mentioned exclusive contracts, there are high standards set for the products that can be listed on the auction website.

Even refurbished items and customer returns have to pass strict quality tests before being offered for sale meaning you are only bidding on quality items. It has to be stressed that over 30 percent of products purchased online get returned to their sellers for various reasons.

But the quality is often backed up by at least a 90-day warranty on any refurbished product directly from the liquidators.

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