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Wholesale Liquidation Merchandise is not for the Meek

Do you have a weak stomach? If so, purchasing liquidation merchandise, specifically un-manifested merchandise, might not be the smartest move for your business. This warning reminds me of the signs posted at the front of the roller coaster lines, which proclaim you must be of a certain height to step onto the ride…..

What is un-manifested liquidation merchandise? Well, to be blunt you have no idea of what you buying. There is no inventory or list breakdown of items contained in the lot, pallet or truckload. Why would any wise entrepreneur spend money blindly? The thrill of the ride. Ah, I am being a little dramatic, but honestly purchasing mixed assorted lots or pallets of unknown merchandise is not for those who like to gamble. If you are content with paying traditional wholesale pricing on the merchandise you resell, stay put.

Those of you who like the thrill of a little risk and enjoy the excitement of a challenge…come along as I describe what liquidation merchandise is all about. Wholesale Liquidators and large department stores often resell name brand merchandise in unmarked, non-inventoried lots or pallets. Big spenders can opt to purchase an entire truckload of mysterious merchandise at sometimes pennies on the dollar. As a retailer looking to purchase liquidation merchandise including customer returns, shelf pulls and overstock you need to understand that all pallets and loads will be assorted. Assorted brands, styles, sizes, colors, quantities etc.

About the only decision you will make when buying liquidation pallets would be that of the merchandise category. For example, a general merchandise liquidation pallet might consist of several departments from any given store. You might find small gifts, small appliances, trinkets, home improvement, home décor items and other miscellaneous items in this category. Each pallet will be different.

If each pallet or load is different, you the retailer will have to deal with a rotating product offering in your store or your eBay auctions. This is where the iron stomach comes in. One pallet might be loaded with coffee makers, while the next will run heavy in humidifiers. Can you handle a diverse product offering?

I think this in itself is a benefit to your clientèle because you will always have something fresh and interesting to offer. I have always taught retailers to not become “stagnant” with inventory. If a customer comes through your doors twice and sees the same merchandise, it is doubtful he will be back because he knows what to expect! Keep your customer guessing……

Lets get back on topic, here are a few words of wisdom for those of you who are thinking about buying a pallet or truckload of liquidation merchandise:

  • Always expect the unexpected when buying pallets of name brand mixed merchandise. Often merchandise will be placed into the wrong category. I purchased an apparel pallet once and found three mini DVR cameras inside!
  • Do not listen to the broker or liquidation company’s sales pitch about what to expect as far as quantities or specific items. If advertised as a pallet of approximately 500 items, expect 400-500 to calculate profitability.
  • Do not jump into the cold water without slowly getting your feet wet! Buy a small lot or pallet first to test the merchandise and your ability to combat the idea of buying “sight unseen” mixed merchandise.

Often, a newcomer to the world of liquidation merchandise will get really excited and take little time to research before buying. This leads to buyers remorse and, often, complaints to the selling supplier.

Have I literally scared the living daylights out of you? Are you ready to throw in the towel before buying?

Liquidation merchandise has provided a tremendous amount of profit for my business. It just takes a little more effort as far as creative marketing and determination. I buy truckloads of mixed un-manifested loads of wholesale merchandise frequently. Liquidation merchandise has proven to be a great way for my customers to buy name brands at a fraction of retail pricing found at the neighborhood big box store!

The Liquidators Guide! - 121 pages of purchasing information & liquidation sources in a fact-filled guide that wholesalers and liquidation brokers do not want you to get your hands on! I have been buying and reselling wholesale liquidation merchandise for ten years...and I am going to share my knowledge with you!

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