Giant manufacturers and retailers have always depended on one or more liquidators in managing their excess or returned merchandise. For the past few years, however, a noticeable change happened. A number of organizations are now going past the traditional liquidation process and just using programs that are based on technology, especially in dealing with obsolete inventory for the overall business method. A more formal term for the new trend is “Liquidation 2.0.”
Liquidation 2.0 aims to promote excess and returned merchandise directly to the buyers. It would mean a better chance for independent retailers who buy customer returns. Liquidation 2.0 gets rid of the middleman and opens an opportunity for direct buying.
Here's why direct buying is a great option:
Direct Connection With Retailers
Eliminating the middleman will enable the buyers to build a direct connection with the retailer, which has been going on in small to mid-sized businesses; just like what happens to Little Rock television for sale deals.
No Price Increase
For liquidators to earn, they buy the merchandise at a low price and sell it with a high price value, which leads to a significant price increase prior to gaining access to the inventory. On the other hand, buying directly from the source will get them the fair market price that buyers would be willing to pay.
Direct buying from the source also means one-time shipping, as it removes the retailer-to-liquidator shipment. In other words, the cost savings don't have to be recouped through a price markup. Therefore, a better profit margin will go directly to the bottom line.
Product Poaching Not Necessary
Liquidators usually go through the inventory, take out the best products, and sell the rest while getting the margin that would have otherwise gone to the buyers. It is worth noting that removing the middleman means having the fair access to non-filtered large quantities of merchandise over condition codes that include the new ones.
To leverage the retailer’s B2B liquidation marketplace is currently the trend among plenty of small buyers purchasing excess and returned inventory directly from a source.