How to make money with wholesale liquidation
How to make money with wholesale liquidation
Wholesale liquidation is not the same as the "liquidation" of the firm which means closure. Wholesale liquidators deals in excessive products that a business is looking to get rid of, sometimes because they are about to introduce new stock and they are short of storing space, or maybe the season has come to an end and the business is ready to sell these products at low rates, as soon as possible. At times a business might be looking to chuck out their inventory because they are closing out. Retailers or other wholesalers might see some opportunity in this situation and go for purchasing these products at extremely low rates. The retailers and wholesalers might be operating at a faraway place, where they can see the demand is still there, or they will purchase products at dirt cheap prices and sell them at slightly higher prices to low end users. To cut the long story short, wholesale liquidated products maybe a little bit dated or old fashioned (not necessarily though), but they are certainly not low quality or substandard products. If you are looking to start a small trading business, you can think about focusing on liquidated products. However it will take some effort to keep a tab on wholesale liquidators. It might be difficult to source genuine liquidators because not many businesses have surplus stock all the time.
When purchasing from wholesale liquidators, you must remember two things. Don't get overly excited by looking at the low down price being offered by liquidator because at times the resale value will not really be in excess of liquidating price, needless to say, any such deal is a big No. Add in it the shipping, transport and reselling cost and then compare it with the resale price. Do not buy the products unless you have a specific marketing plan and resources in place. Take a look at the inventory and don't hesitate to ask the supplier about the reason for stock liquidation. If the products are out fashioned but of good quality, you will still be able to find the buyers but if these were some sort of seasonal products and the season is getting over, you'll have to hold these products till the next season, so you should think of the storage cost as well. Not all liquidation deals are worth the salt and spotting the right deal is very important or you will end up with nothing but getting stuck with someone else trouble as your own.
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