Liquidation Auctions: The Quickest Way of Increasing Your Store’s Profits
If you are selling items on auction sites, such as eBay, then you may be having trouble making a decent profit given the fact that you have thousands, if not millions, of other sellers to compete with daily. Moreover, many single items are also frequently sold at prices that are comparable to wholesale prices, so your products may not be seen as competitive by many buyers.
However, by changing how you purchase products, you can increase your store’s profits without having to perform a full overhaul. That is, retail liquidation in Toronto can help you quickly improve your profits. It allows you to buy products at a low price while also allowing you to sell merchandise at prices that are lower than your competitors.
Thus, you can maintain high quality while also enjoying increased profit margins in the process. Here, we will delve deeper into retail liquidation and how it can help maximize your return on investment.
How Liquidation Auctions Work
Many online resellers have turned to liquidation auctions to stay afloat in an increasingly fierce and cutthroat marketplace. The main reason why they have increased in popularity in recent years is that the prices at these auctions start well below wholesale and tend to end below them as well. This is despite the fact that the items sold involve multiple bidders that are bidding for each pallet of merchandise.
However, please note that not all liquidation auctions are created equally. That is, you will need to do some research to find reputable liquidation auctions. You can then rest assured that you will have access to top-tier goods that are sold and manufactured by popular and reputable brands.
At this point, we should quickly debunk the myth that liquidated items must be of low quality. After all, they must be of subpar quality because if they weren’t, then they would have been sold via the conventional route, right? However, more often than not, nothing could be further from the truth, as we shall see below.
Where do the items come from?
The reason why liquidation auctions can sell AAA products at very low prices is because of where the products come from. That is, the most popular liquidators have enduring partnerships with the top retailers in the world, such as Walmart, Target, Amazon, and Lowe’s.
These huge retailers are given a platform with which to resell merchandise that they want to get rid of quickly and conveniently. Most of the products that they wish to dispose of tends to be either brand new or in near-perfect condition. This is because retailers are sometimes unable to sell off everything that they order, and need to sell those items quickly to make room for other products.
So don’t be surprised if many of the items that you purchase still have their shrinkwrap or price-tags attached to them.
Interestingly, the best liquidators will sign exclusive contracts with top manufacturers and retailers, so you can rest assured that the quality of the merchandise will never be compromised. Most will also enforce very strict quality control protocols so that only high quality, original, and mint condition items can be listed on the auction site.
What about customer returns?
Perhaps even better than buying brand new products is buying products that have been refurbished or returned to the store by customers. At this point, you may be worried that such items may be defective or broken. However, the quality of such products is rarely ever compromised.
Interestingly, about one in three (or 30%) of all products that are sold are returned to the store from which they were purchased. There are many reasons for this, such as the fact that people who buy items online are unable to test them before purchase, or orders may be mixed up during the shipping process.
Items are also sometimes damaged during shipping, and customers may obtain the products in different shapes, sizes, or colours than what they originally wanted.
However, even if an item is returned unused, it still cannot be sold as “new” anymore. As a result, the retailer will be legally mandated to resell the product at a fraction of its original price in order to recoup some of its monetary worth.
As for refurbished items, most retailers have massive departments that specialize in testing products that are returned, and will also perform any necessary repairs. Thus, refurbished products have been thoroughly tested and repaired in order to ensure that they work as well as their brand new counterparts. In fact, most refurbished products will come with a 90-day guarantee.
Obtain Access to a Manifest and More
When you work with a top-level liquidator, you will also enjoy many benefits, such as receiving a manifest that provides details on the quality of the items included in each lot. The manifest will also give accurate details on the quality of items in each lot, as well as the contents included, so there are no hidden surprises to worry about before you bid.
Unrivalled customer service is another benefit of partnering with a reputable liquidator, as they will quickly answer your questions. They will also guide you through each step of the liquidation process, so you don’t have to worry about making any mistakes along the way.