Understanding How Liquidation Sales Can Support Your Business

When you see the phrase “liquidation sale” what’s the first thing you think of? It’s most often an empty store and a business trying to get rid of all of its inventory. Although common, it’s not the type of liquidation sale that’ll help your business grow.

When big retailers, such as Walmart, Amazon, and Target, must find a way to make a profit due to overstocks, closeouts, or customer returns, that’s where liquidation sales come in. Retailers in countless industries use liquidation sales to make room for new products and merchandise. From saving money to keeping investments low, these kinds of sales can have a significant impact on your business.

Let’s face it, purchasing inventory for your business isn’t easy. It’s time-consuming, costly, and if the merchandise doesn’t sell, it can leave you with more than you bargained for. Fortunately, liquidation sales can help you stock up your business without breaking the bank. Keep reading to learn how liquidation sales can support your business.

Great Prices

One of the biggest advantages to buying products from liquidation sales is affordability. As mentioned, well-known retailers need help getting rid of their overstock or returned inventory, so prices are deeply discounted.  Not only will you be saving money, but you’ll also receive high-quality, brand-name items at a fraction of the cost.

Moreover, shipping is also inexpensive, especially if you order a truckload of products. Shipping costs tend to be lower when you buy a truckload of Target, Walmart, or  Amazon liquidation merchandise because your shipment is departing the warehouse and arriving at your business one time per order. You’ll save money in the long run and are worth looking into if you don’t want to buy a single pallet at a time.

Save Time

Physical liquidation sales happen almost daily, but you can’t be everywhere at once. Your best bet at finding high-quality wholesale products is via online liquidation sales. These sales are much faster because you won’t waste time picking and choosing what inventory you’re going to purchase. Plus, you can avoid crowds and shop at your leisure.

Online liquidation sales are extremely easy to participate in once you have an account set up with the merchant. Most of the time, liquidation sales are completed through bids, but some wholesale vendors will allow you to buy their stock without bidding, saving you time and money.

Unique and Varied Inventory

When you own a business, finding merchandise and products for your store can be tricky, not to mention time-consuming and costly. However, liquidation sales will help you have a variety of products that are unique and that cater to your business. Additionally, you’ll receive an abundant amount of items without sacrificing quality or money. From electronics to toys and makeup, there’s an array of options for every industry.

Finding the products you’re looking for is also straightforward. Numerous companies act as a middleman between you and big-name retailers, so you can easily buy their overstock and returns. They’ll sell a mixture of products either by pallet, box, or truckload. For example, an electronics pallet can be filled with speakers, headphones, computer accessories, and more. Other mixed boxes can have a variety of children’s toys and board games. This makes it easier for businesses to shop for a specific niche and tailor their product offerings better.

Brand-Name Merchandise

Another reason why liquidation sales are incredibly popular is because you’re going to receive brand-name, well-known items. Oftentimes, retailers, like Walmart, Target, Microsoft, Dell, and Lowes will liquidate their inventory in bulk to break even on surplus stock or make room for new products. For instance, you could get a box full of the latest Apple products or a mixed box of 100 video games.

According to Salsify's 2021 Consumer Research Survey, 90% of consumers are willing to pay more for products and services from brands they recognize and trust. Customers tend to gravitate toward brands they know or have seen when they’re ready to make a purchase, so it’s important to consider that when shopping for inventory. You want to continue growing your business while establishing yourself as a reputable seller.

Increase Profit

When it comes to liquidation sales, businesses are trying to get rid of old and used inventory fast, so prices tend to stay low. As mentioned above, you’ll be able to buy brand-name products at a deeply discounted price. You can either pass these spectacular prices down to your customers and break-even or sell products as normal to earn a hefty profit. Of these two options, the former won’t make you much money, while the latter will increase your bottom line without overspending on inventory.

Although liquidation sellers offer a variety of brand-new, unopened items and clothing with their original tags, they also have an assortment of goods that are refurbished and open box. If you already sell second-hand products, this is a big win. You can also upsell limited-edition items that are no longer sold in stores, such as collectible toys, clothing, makeup, and more. As long as there’s a demand for these products, you can resell special-edition merchandise for thousands of dollars.

Final Thoughts

When you find a liquidation seller, it’s important to check the details of the lot you’re buying. The site should include the condition of the items and the type of products. This way, you can avoid making a purchase that won’t sell at your business and price inventory accordingly.

Liquidation sales have proven to be extremely beneficial for businesses, just look at Ross and Marshalls. It’s easy to get carried away with the expectation of earning a lot of money, but you must always stay true to your business and focus on investments that’ll increase your profit margins. This is a huge opportunity for your business and will allow you to divide your earnings into improving marketing tactics and building your website, so your business can continue flourishing.


Author bio

Michael Lawrence is the Director of B2B E-commerce for Direct Liquidation, an online marketplace connecting buyers with sellers of wholesale and liquidation inventory. Michael holds a Bachelor of Applied Science in Civil Engineering from the University of Waterloo. Over his career, Michael has worked for several Fortune 500 companies in a variety of technology-related roles as well as developed his own online businesses as an entrepreneur. In his previous role, Michael was instrumental in propelling his business into the top 1000 most visited websites in the world.

Mercy - CBNation

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