What to Expect when buying from Liquidation Suppliers
Buying from liquidation suppliers must always be taken with a grain of salt since this method usually doesn’t allow you to personally inspect the products before buying them. It has its pros and cons, just like any other method of sourcing inventory. But as a reseller, what should you expect when buying from liquidation companies? We listed them down for you.
- Some items might be damaged and doesn’t come with warranty.
Unlike store-bought inventories, overstock or shelf pulls have been sitting around the department store (from which it was taken from) for a longer period of time. Hence, small damages or stains might be visible, especially for clothing items. For other merchandise such as electronics, home accessories, or toys, there might even be no warranty included since these items are basically sold at a very low price already.
- Tags might be missing, especially for customer return conditions.
We can speak for most clothing liquidators on this one. Some customers are really meticulous enough that they won’t buy anything that doesn’t come with the original tags. For customer return items, this isn’t always the case, as the clothes are technically “owned” or may be “worn” by other people before they are returned to the store. No one really knows what happened after they have bought it. They might have worn it for some event, and they even named themselves “serial returners”, imagine that?
Serial returner is “a term that refers to those who frequently buy large quantities of clothing in bulk, wear them as they go about their everyday lives and then return them, receiving every penny of their money back.”, according to Sabrina Barr of The Independent. Of course, whenever they return these items, no one knows how many times they have worn it before turning them over to the store.
Because of this, tags and labels might be missing especially for clothing items. This is one of the most important thing to consider when buying from liquidation suppliers. Read this blog to better understand Honcho Wholesale’s product conditions.
- You’ll get items for more than 50% off original SRP.
Lastly, unlike clearance-bought items, liquidation offers an unbelievable amount of discount especially when buying in bulk. Let’s take lot C256 as an example, you will be getting 25 units of high end apparel lots for only $273.56, but the original selling price of all 25 units of clothes sums up to $2,188.50, so you will be getting about 87% of discount! This lets you get an ample amount of profit if you’re just starting out with the business of reselling.