Ins and Outs of Surplus Liquidators

28 Nov 2022
Wholesale liquidators

It is common for manufacturers, distributors, retailers, wholesalers, and even commercial offices to have excess inventory. Most times, these companies try to liquidate their inventory by themselves. However, the liquidation process is usually more complex than anticipated, consuming time and resources. Working with surplus or wholesale liquidators is an excellent way to avoid the hassles of liquidating surplus assets.

A surplus liquidator is a company that buys goods in bulk from manufacturers and resells them at a lower price. The products are usually overstocked, closeouts, or discontinued items. Liquidators typically sell their goods online or through brick-and-mortar stores. The main benefits of using one are that they can get great deals on high-quality products.

Approaches to Surplus Liquidation

There are several approaches to surplus liquidation, which include the following:

  • Auction
  • Single Buyer Consignment
  • Multiple Buyer Consignment
  • Outright Purchase


During an auction, items are grouped into lots and promoted for a live or online sale. This procedure of wholesale liquidators can be time-consuming, so the liquidator will usually demand a percentage of all sales during the auction as a fee. Auctions often allow for cheaper commissions and lower fees, but they also have their risks, as they may result in a significantly lower price than anticipated.

Single Buyer Consignment

Single buyer consignment is another approach wholesale liquidators use to liquidate surplus assets. This process involves selling all surplus items to a single buyer. Liquidators typically have lists of buyers and dealers they want to sell to. They will market consignment inventory to these buyers and choose the buyer that makes the best offer. The liquidator’s commission is based on the final price the assets are sold for.

Multiple Buyer Consignment

During a multiple-buyer consignment approach, surplus items are sold in portions or smaller lots to several buyers until everything is sold. This approach works similarly to the single buyer consignment, except that products are sold to multiple buyers. It is also often used by wholesale liquidators in Canada, as it helps speed up sales.

Outright Purchase

The outright purchase approach is a common surplus liquidation approach. Often, liquidators will buy all the surplus items outright. This is a fast approach, allowing you to dispose of all surplus items quickly. While some excess liquidators make outright acquisitions, most work primarily on commission.

Benefits of Using Liquidators

Liquidators can provide your business with several benefits, from cost savings on inventory to access to a wide range of products. The benefits of working with wholesale liquidators in Canada include the following.

Cost Savings on Inventory

A benefit of working with a liquidator is the cost savings they can provide on inventory. When businesses have excess or unwanted stock, they often struggle to find a buyer willing to pay full price for the goods. As a result, businesses are forced to sell their merchandise at a discount, eating into their profits.

Surplus liquidators specialize in purchasing and selling excess inventory, so they’re always on the lookout for good deals. By working with a surplus supplier, you can offload your excess inventory quickly and at a fair price – ensuring that you don’t have to take a hit on your bottom line.

Access to Hard-to-Find Products

Another benefit of working with a liquidator, especially Canadian liquidators, is that they can provide access to hard-to-find products. When businesses have specific product needs, tracking down the right merchandise can be difficult, especially if the items are out-of-production or discontinued.

Liquidators often have long-standing relationships with other businesses in their industry, which gives them access to a wide range of products, including rare items. Working with one allows you to source specific products without spending hours (or days) searching for them.

Michaels Global Trading provides reputable liquidators in Canada specializing in office furniture and technology liquidation. We work with companies across different industries for office moves, mergers, bankruptcy, and downsizing. Contact us today to schedule an appointment.

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