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What You Need to Know about Liquidation

For tens of thousands of business owners, sourcing products to sell to customers is of crucial importance. From flea market sellers to brick and mortar stores, there’s an incredible need to find high quality merchandise at an affordable price. There’s also a need to ensure that the supplier of that merchandise is able to keep popular items in stock so that they can be reordered when inventory levels at the retail level run low. Liquidation can help here.

What’s It All About?

Liquidation means to eliminate, or get rid of. You’re familiar with the concept when it applies to a business going under. For instance, if a company were forced to fold, all of its assets would be liquidated in an effort to repay its debts. That applies to everything from company cars all the way down to the office furniture in most costs. This isn’t the type of liquidation we’re talking about, but the concept is similar.

With liquidators, retail sellers large and small are able to source merchandise for below wholesale prices. Pay attention to that term (wholesale). Once, wholesale was about the cheapest you could find. In fact, it’s the concept on which successful warehouse stores like Costco were founded. However, it is no longer the cheapest option for retailers. Liquidators now hold that title.

Simply put, liquidators are companies that form strong relationships with major manufacturers, and then offer an incredibly wide range of merchandise for the lowest prices you’ll find anywhere. Merchandise on offer can include everything from fitness trackers and wearables to digital picture frames to computer networking equipment, HD televisions, and more liquidation.

The Rise of Liquidation Auctions

The popularity of eBay has spawned many different industries, and liquidators have drawn inspiration from that model as well. You’ll find that liquidation auctions allow you to bid and get the best deal possible on lots of all sizes, from a handful of cartons to entire pallets. The process is simple – you register with the site, provide your payment details, and then start bidding. Each individual auction provides you with the necessary details, including the type of merchandise in the lot, the number of pieces and the size of the lot, the MSRP for the lot, the remaining time on the auction, and the highest current bid.

This information allows you to do several things. First, it allows you to sort your options and find exactly what you want, in the quantity you need, very quickly. Second, it allows you to see how much the street value of the merchandise is, and then compare that with the highest bid. You’ll also want to compare that with your budget. If the situation is right, you bid on the lot. If you win, you ship (or have the liquidation company ship) the merchandise to your desired location. It’s that simple.

As you can see, liquidation is a breath of fresh air in an industry that is long overdue for change. 

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