Just what is liquidation merchandise anyway?
When I use the term liquidation merchandise I am referring to one of the following categories or descriptions wholesale merchandise:
Retail Returns
Just as the name implies, retail returns are items that have been purchased by an end user and then returned to the original store for refund or exchange. Returned items usually will have some issues ranging from damage to missing pieces. Incidentally, some items are returned to the original store after an impulse purchases and/or a “changed mind”. In the liquidation industry a returned item that shows little to no damage is considered a “Cherry”. This is where the phrase “Cherry Picked” comes from.
Closeouts
This category of merchandise is comprised of items that are being “closed” out and no longer sold. Can also represent items which are no longer be produced and/or manufactured therefor remaining stock is sold just above cost or in some cases below cost to make room for new inventory.
Salvage Merchandise
Refers to merchandise that is in a form of distress. Salvage merchandise can refer to items that have been damaged in transit, such as an overturned truck or possibly been exposed to flood or suffered smoke damage. Often salvage merchandise is liquidated by insurance companies who are trying to recoup dollars from an insurance claim that has been settled.
Canceled Orders
Large chain stores will set specific requirements for vendors who supply merchandise. For example, a large big box chain store might cancel an order from a particular vendor who cannot meet contract delivery deadlines. Rather than warehouse a large canceled order, a manufacturer might liquidate stock to recover costs.
Overstock
Items which are being liquidated due to a surplus quantity, which cannot be sold or moved quick enough. Retailers will liquidate overstock to make room for new merchandise.
The above categories of merchandise can be purchased well below wholesale pricing and represent an excellent way for store owners, flea market vendors and eBay auction sellers to stock name brand items. They key to success in purchasing liquidation merchandise is finding reliables sources.
If you can buy below wholesale you will be able to offer name brand merchandise at competitive pricing. Liquidation merchandise can prove to be very profitable for anyone engaged in retailing.
What the heck is Shelf Pull merchandise? Just as it sounds, shelf pulls are retail products that have been on display in a retail store and then subsequently “Pulled” from the shelf for various reasons. Big Box retailers will pull items from the sales floor for several reasons, including:
- End of season model/style
- Initially purchased too much of an item and therefor have excess unsold stock
- Product no longer being manufactured or distributed
- Product being recalled due to a safety hazard
Most of the time, retailers simply pull items from their retail sales floor to bring in newer items. Think about it, most stores rotate stock to keep their inventory looking fresh and new. Due to this reason, there is an abundance of merchandise which can be purchased on a wholesale level and resold for a great profit. There is no better way to “tap” into major name brands on a wholesale level. The great thing about buying shelf pulled merchandise is simply cost. often, shelf pull merchandise can be purchased for “pennies” on the original wholesale dollar!
Are you looking for name brand merchandise to resell on eBay or through your ecommerce store? Shelf pull merchandise can also be sold through your store front and exported throughout the world!
Ok, I have convinced you…I can tell. Where do you find Shelf Pull merchandise?
Shelf pull merchandise can be purchased through Wholesale Liquidators or buying directly from each department store. Some department stores have their own liquidation department where they sell pallets and truckloads of shelf pull and customer returned merchandise. Most big box retailers will contract a ‘Third Party” liquidation company to move excess or unwanted merchandise. In this case, dealing with this third party is considered buying direct.
