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Purchasing Wholesale Closeouts Safely

When engaging in any sort of product purchase it’s imperative to take all possible measures in order to facilitate a safe and secure transaction. This is especially true when it comes to purchasing wholesale closeouts as you may often be dealing with companies whom you do not have a prior business relationship with.

The ideal way to purchase any closeout or liquidation product is with an open account, as in purchasing on credit. This is ideal because there is little to no risk of fraud as you pay only after you have received and inspected the merchandise. It also is helpful in terms of cash flow, as generally purchasers have thirty days to pay the invoice which gives time for the purchaser to make some sales before paying. Of course, not all liquidators and wholesale companies allow for open accounts, especially to new buyers. However if you are repeatedly buying from a company that does not provide you with an open account, it may be something to push for.

Of course if you are unable to buy on credit then you will have to pay in advance. This is obviously more risky as there is the chance of of goods arriving in poor condition, or not arriving at all. However, some payment methods provide the buyer with more security than others:

Using a credit card such as Visa or MasterCard can help purchasers protect themselves against fraud. Of course, this also provides the benefit of the buyer not needing to pay directly for the merchandise until the agreed upon time with the credit card company. Also both Visa and MasterCard offer protection should their be issues with items not arriving or having the incorrect items shipped. Users may be able to request a charge back in either of these cases, but it’s best to check with the card company beforehand to ensure that your purchase would qualify for such protection.

Using a reputable escrow company, such as Escrow.com can be useful for trades taking place both domestically and in many cases internationally (not all escrow companies are available in all countries). Escrow services act as a third party which oversees the transaction. Generally the purchaser will send the money (via wire transfer or credit card) to the escrow service, which will then hold the money until goods are received. The buyer then has an pre-agreed on period of time in which to inspect the goods and release the funds. If the goods are not adequate they can then be shipped back, and once verified, the funds are released back to the purchaser.

There are also payment options which are to be avoided as they are high risk and frequently requested by less than reputable suppliers. Never send money via Western Union or similar services directly to a seller that you have never used before since, for if you do not receive the products, you have little to no recourse.

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