If you’re looking to resell liquidation merchandise, you may be wondering what is the best way to obtain inventory. Traditionally, you had two ways to source liquidated goods: through a wholesaler or a liquidator (aka “jobber”). Fortunately, today, there is a third option: buying directly from the retailer via the retailer’s online liquidation marketplace. This more transparent choice ditches the middleman and the markups. In this post, we’ll break down the 5 reasons why you should buy from an online liquidation website.
What is a Liquidation Website?
A liquidation website is a place where retailers and manufacturers can offload their overstock, customer-returned, and other liquidation merchandise. This solution helps companies sell their merchandise for a fair price while providing business buyers access to a steady stream of inventory. As more and more retailers and manufacturers turn to auction-based liquidation websites, small business buyers can find brand name merchandise for their business across all price points, categories, and conditions.
5 Reasons to Buy from a Liquidation Website
1. No Markups
In order for a liquidator to make money, they need to buy the merchandise low and sell it high. This results in substantial price markups before you ever even have access to the inventory. When you purchase directly from a retailer’s B2B online liquidation marketplace, a competitive and transparent auction platform, you’ll see better margins and never pay more than you want.
2. No Product Poaching
Oftentimes liquidators will comb through the inventory they purchase from retailers and pull out the best products for themselves then sell the rest to you. This is called product poaching or “cherry-picking.” As a result, those liquidators then sell the picked products at retail prices, capturing margin that would otherwise go to you. By eliminating the middleman, you have fair access to non-pilfered bulk quantities of merchandise, across all condition codes, including new. Also, you’ll capture a margin that would have otherwise been unavailable to you.
3. Buy Direct
By purchasing directly from the retailer, you are buying from someone that wants to move the inventory fast and get the fair market price buyers are willing to pay. Plus, when buying direct, merchandise is shipped only once from the retailer to you (eliminating the retailer to liquidator shipment). This translates to direct cost savings that no longer need to be recouped; meaning, better profit margins that flow directly to your bottom line.
4. Retailer Relationship
Cutting out the middleman allows you to establish a direct relationship with the retailer. Historically, this is something that has been tough for small to mid-size businesses. Using a retailer’s B2B liquidation website is an ongoing way that many small business buyers are purchasing excess and customer-returned inventory directly from the source.
Sourcing inventory from a traditional liquidator can often mean hours of back and forth negotiation with no visibility into competing offers. Instead, by purchasing directly from the retailer’s online auction B2B liquidation marketplace, it enables a level playing field and transparent platform for all buyers to compete fairly for the inventory.
With more retailers turning to auction-based liquidation websites, access to brand name merchandise has never been easier. In fact, nine of the top 10 U.S. retailers use B-Stock to sell their inventory directly to business buyers. To learn how you can begin purchasing liquidation merchandise on B-Stock, read our post How to Become a B-Stock Buyer, Part 1.
Choosing the Best Liquidation Website
So, how do you pick the best liquidation website? In addition to the five reasons listed above, you need to find one that fits your inventory needs. Many of the world’s largest brands and retailers use B-Stock to liquidate their merchandise. Buyers have access to 65+ marketplaces, millions of products, dozens of categories, and different lot sizes and conditions for every budget. Start your B-Stock buying journey today and take a look at all of our current live listings.