Canadian Liquidation suppliers: The rules for good liquidation buys

Liquidation is one of our favorite ways to buy goods for resale. If you get it right, liquidation and overstock deals can offer you much bigger profits than any other supply method. This is because liquidation is usually sold below cost price, leaving potential for a huge profit as long as the goods are not too old or damaged. Liquidation is also an excellent way of getting hold of brand-name goods to resell as it allows you to sidestep the usually issues of becoming a preferred supply, authenticity paperwork and so forth.

There are two important things to know about liquidation:

  1. Quality of stock is variable

    Not all liquidation is equal! Some liquidation pallets are overstock, others are shelf pulls, broken or returned items, shop-soiled or damaged. Although pallets may be given a status, such as ‘returns’ or ‘new’, you can’t be sure that this is really the case unless you inspect. For instance, while a product may be ‘new’ in the sense it has never been used, it may also have been sitting in a warehouse for 5 years and be far too dated to be saleable. You really can’t tell what you are going to get unless you inspect first.

  2. You usually have to buy by the pallet load - that means a typical spend of $500+, so this method is not ideal for people on a budget (and don’t forget you also have to add transportation, storage and Customs costs on top of the purchase price).

Buying liquidation over the internet can be risky. We’ve heard stories of people getting pallets full of broken merchandise with only a couple of sale-worthy items. We’ve also heard of one sly liquidator who shall not be named placing a top layer of designer products over a pallet full of chain store clothing. Remember that liquidation sales are final. Once you win the auction, the goods are yours no matter what!

Limit Your Risk

Before bidding, get a full inventory of every item in the pallet and its condition; You should also make an appointment to inspect the pallet if possible.

Competition

Given the marvelous bargains available, liquidation sites are understandably very popular so be aware that you will have a lot of competition, particular for popular items such as consumer electronics and brand name goods. Basically, the more money you have, the more power you have on liquidation sites!

Find Your Own Liquidation Deals

There are plenty of great liquidation deals you can find yourself! Most liquidation sites are based in the US which means potentially hefty transportation charges. Save yourself the bother and expense by doing some deals locally. Look for stores closing down and offer to buy up all left over plant and stock. Visit stores at the end of sale season and ask to purchase remaining stock in bulk. They’ll be pleased to get rid of it and you can cut yourself a good deal. This is a particularly good idea for clothing, which you can store over the out of season period and resell at the beginning of the season next year.

A final tip: Don’t get carried away! Do your market research before you buy and always set yourself a budget limit. If the auction goes over that, too bad.

Profile: Liquidation.com

http://www.liquidation.com

Liquidation.com is the best site to find new, used, refurbished, returns, closeouts, and even salvage merchandise in many different categories. Be sure to read through the descriptions of these different types of stock before you bid. Liquidation.com uses auctions to sell goods with most lots starting at $100 with no reserve, letting the marketplace decide the final price.

What do they sell?: Everything from Victoria’s Secret lingerie and ipods through to tools, homewares and jewelry.

Registration: You need to complete the free registration form before you can start bidding

Limitations: Liquidation.com is a US site and not all lots are available for export outside the US. However, in most cases it is possible to twist their arm if you give them a call or email.

Bidding: Liquidation works like an auction site. Enter the maximum amount you are willing to pay in the bid box for the auction you wish to purchase.

Payment: All buyers outside the US need to pay via wire transfer.

Shipping: The buyer is responsible for all shipping costs including duties and taxes for international shipments. In most cases, Liquidation.com will arrange and manage the shipping; however, some auctions state “Buyer MAY Arrange Shipping" or "Buyer MUST arrange shipping”. Often this is a better option because Liquidation’s shipping can be more expensive. You can get a shipping estimate by clicking on the "Get a Shipping Quote" icon located at the top of each auction page.