Buying and Selling Liquidation Products – Must-know information that the liquidation companies won’t tell you!
by Carrie Hinkel on January 16th, 2008
Think liquidations might be right for you or your business, but you’re not exactly sure what they are? Well, liquidations are simply products that a company doesn’t want anymore. Maybe they couldn’t sell them or they’re damaged or missing parts – but they’ve been taking up space in the warehouse and collecting dust, so they need to go. In fact, many companies are so desperate to get rid of some products that they’ll sell them for mere pennies on the dollar. Does that mean that buying liquidated products means you’re getting a great deal? Sometimes, but not necessarily.
What to know about buying liquidated products
The first thing to remember is that liquidations are products that someone else couldn’t sell. Of course, that doesn’t mean you can’t sell them – it just might not be as easy as you think. Also, liquidations typically are divided into categories (and a good liquidator will tell buyers the condition of their liquidations). Don’t just assume all liquidations are new and in the box – because many times that is not the case. Here is a typical list of liquidated products by type:
New – This is the best type of liquidated products to get. They’re new, in the box, and have never been sold before. It doesn’t mean they’re brand new – these products could have been sitting in the warehouse for 5 years, you just don’t know. For products with an expiration date, it’s best to ask what the expiration date is on the products or to avoid them all together.
Used / Returned – These products have been sold, used and then returned. They may or may not be opened or have boxes. Some may have missing parts, manuals, etc. Some may be defective. You won’t really know how many you are able to sell until you get the shipment and are able to go through them, one by one.
Refurbished – These products were used by someone and broke, and were then rebuilt to work again. Refurbished products may or may not be in original packaging, or come with original accessories. It’s also possible that they show signs of use.
Shelf pulls – These are products that were for sale in retail stores but never sold. They may have multiple price tags on them; they may be used, damaged or missing original packaging and materials if they were display models.
Salvage – Basically these products are just a pile of junk and are good only for parts.
Now that you know that liquidations come in all forms, you’ll be better prepared to ask questions about the condition of any products you’re interested in.
What to know about selling liquidations
Most liquidators are interested in buying products by either the pallet or the truckload. So, if you only have a few boxes worth of goods, you might want to consider selling them as a lot on eBay instead.
After you’ve determined that you have enough products to sell to a liquidator, you should determine what category (or categories) your products fall into. Obviously, the better condition your products are in, the higher the price you’ll get from a liquidator.
With liquidating products, the goal is to get rid of your products, not make a profit. Sure, you’ll make some money, but it’s doubtful you’ll get back what you paid in the first place. But, getting rid of the dust collectors means you’re not paying storage fees on non-moving products – and now you can bring in some new inventory!
Finding a liquidator online is easy. You can begin with a site like Liquidition.com , or you can search online for liquidators. Just be sure to research any company you plan to do business with.