While there are many professional and reputable closeout suppliers to be found, unfortunately there are also many unethical wholesale business operators and even downright scammers that you need to be aware of. Therefore, before you make an investment in any kind of wholesale goods, make sure to take these tips into consideration:
The first and perhaps most important rule for new buyers of wholesale liquidation merchandise is to research, research, research! Don’t make the mistake that many folks do and rush into your first wholesale investment only to later discover that you’ve jumped the gun and made a risky transaction. If practical, try to conduct your first transaction with a company that is in your local area. By doing so, you will be able to see the available goods before deciding whether or not to make the purchase from this wholesale supplier or a different one.
Ask questions – Even better, research terminology beforehand and ask SPECIFIC questions. Know the difference between shelf pulls, factory overstocks, salvage goods other types of wholesale merchandise in order to have a good idea what to expect. Also, ask specific questions about the condition of the merchandise, and the variety offered. For example, if buying a lot of clothing, you probably will want to ensure there is a strong variety of styles included in your lot, and not simply hundreds of the same shirt, with a few others thrown in.
If you have already found a company that sells what you’re looking for – you’re not done yet! Take additional steps to ensure that it is a legitimate company. Don’t hesitate to ask for references, as solid companies should have customers that are able to vouch for them. You may also want to ask to see a copy of their business license or request their tax ID number – not that these are hard to get, but it is a little added confidence that you are not dealing with a fly by night company that won’t be there to offer you support in a few weeks time.
Also, you can use the Internet to search what other customers have said about that business, including any outstanding complaints. A couple of sites you can check out include ripoffreport.com, the Better Business Bureau website as well as the various online forums where the wholesale industry is discussed.
Now that you’ve ensured that the company you’re dealing with is reputable, learn additional information about completing a successful transaction by reading our article on purchasing closeouts safely.
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