Liquidation Auctions: From Source to Sales

While browsing for wholesale pallets and liquidation sales you must have come across liquidation auction websites. Many offer merchandise at wholesale prices, or even cheaper, presenting a good opportunity for you to buy merchandise for your resale business. For more details about please click here or check liquidation our official website.

But where does the stock sold at liquidation auctions come from?

Wholesale liquidators, as well as liquidation auctions, usually have contracts with retailers and manufacturers that consign or sell merchandise to them. The reasons why merchandise ends up at liquidation auctions or at a wholesale liquidator's warehouse can be different.

You will find that some items have been put up for auction as the business failed or the store is moving location so instead of packing everything up business owners usually sell the remaining stock to liquidators. This however does not mean the merchandise is at fault for the failure of the business, there might be many factors involved.

Other times, retailers might have surplus merchandise in their inventory taking up space that they need to free up for new incoming products, such merchandise can also be found at liquidation auctions, brand new, even with price tags still attached to these.

The wholesale pallets can also include customer returns and refurbished products. Most of the times merchandise is returned unopened and for a simple reason that it was delivered either to a wrong address or in a wrong color. Even though the package is unopened, such products can't be sold as new.

Returns mostly come from online orders which is backed by the fact that at least 30 percent of all online orders get sent back to the seller, while only 8.89 percent of the merchandise bought at "real" stores gets returned.

Refurbished items are also a good source of great merchandise at low prices, even below wholesale. If you worry about the quality of the merchandise you should keep in mind that the products are usually refurbished by the manufacturer and can come with a warranty. In other cases, and this depends on the quality of the liquidation auction company you are using, liquidation auction companies themselves have departments that inspect the merchandise discard faulty ones, refurbish ones that can be refurbished and pack everything up again. Liquidators that offer such services should be high on your list. 

This can be anyone's guess but the items get sold as quick as possible, especially at liquidation auctions. Since the items are sold in bulk, the prices go even below the wholesale prices giving buyers some great deals and a significant margin for profit.

Such merchandise is usually sold to small business that are doing online resale of items through global auction platforms such as eBay. Being so cheap gives the businesses the opportunity to sell items at near wholesale prices, earning a profit and remaining competitive in the market.

The success of such businesses is in patience and smart calculations. You should never look to return your investment on one product but rather look at the accumulated profit for the complete wholesale pallet you bought at the liquidation auction. So with a global reach, liquidation auction merchandise can end up in every corner of the world.