Why you should ditch middleman liquidator (and buy goods straight from the source)

Over the past few years a shift has taken place in how retailers and manufacturers liquidate their inventory: many are bypassing traditional methods and incorporating technology-based programs into their overall business strategy (or as we like to call it, “Liquidation 2.0”). This includes launching customized B2B online auction liquidation marketplaces that connect returned and excess merchandise directly to business buyers.

If you are a small business who typically purchases inventory from a third party liquidator (or perhaps you are thinking about it), there has never been a better opportunity for you to remove the middleman and purchase directly from the source.

Consider the following benefits:

No price mark ups

 In order for a liquidator to make money it needs to buy the merchandise low and sell it high. This can result in substantial price mark ups before you ever have access to the inventory. By purchasing directly from the source you are buying from someone that wants to move the inventory as quickly as possible and simply get the fair market price buyers are willing to pay. In addition, when buying directly from the source the merchandise is shipped only once, from retailer to you (eliminating the retailer to liquidator shipment). Those are direct cost savings that no longer need to be recouped. These things translate into better profit margins that flow directly to your bottom line.

Better margins are particularly evident when you purchase directly from the retailer’s B2B online liquidation marketplace: a competitive and transparent auction platform means you’ll never pay more than you want.

No product poaching

Oftentimes liquidators will comb through the inventory they purchase directly from retailers, pull out the best products for themselves, and then sell the rest to you. Those liquidators then sell those products at retail, capturing margin that would otherwise go to you. Bypassing the middleman means that you’ll have fair access to non-pilfered bulk quantities of merchandise, across all condition codes, including new. You’ll also be able to capture margin that may have been currently unavailable to you.

Enjoy a direct relationship with the retailer

 Cutting out the middleman will allow you to establish a direct relationship with the retailer, something that historically has been tough for small to mid-size businesses. Leveraging a retailer’s B2B liquidation marketplace is an ongoing way that many small business buyers are purchasing excess and customer-returned inventory directly from the source.

Transparent negotiation (via an online liquidation platform)

Sourcing product from a traditional liquidator can often mean hours of back and forth negotiation with no visibility into competing offers for the merchandise. Purchasing directly from the retailer’s online B2B liquidation marketplace enables a level playing field and transparent platform for all buyers to compete for the inventory.

 

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Given the number of retailers and manufacturers jumping on board the Liquidation 2.0 bandwagon and launching their own B2B liquidation marketplaces, there has never been a better opportunity for independent retailers to eliminate the middleman and purchase returned and excess inventory straight from the source.

Posted in: Buyer Resources