Many people get confused about the differences between liquidation and wholesale (if they exist at all). The two are in fact quite different. In this article, we will discuss both liquidation and wholesale to help you decide which method is right for your business.
What is liquidation?
Liquidating permits retailers to make room for new inventory, as well as recoup some of their losses, such as those on out-of-season inventory. A second reason for liquidating is to address the increasing number of online customer returns retailers have seen in recent years. Over $761 billion of merchandise is expected to return to stores and warehouses in 2022.
Liquidation in the past versus now
Large manufacturers sell liquidation inventory in bulk through negotiated transactions with few high volume buyers. A large number of manufacturers are opting for auction-based platforms. Manufacturers utilize companies such as BDSTX to launch customized online auction marketplaces that connect returned and excess merchandise directly with resellers. The result is a level playing field between all buyers, big and small. How come? Due to the fact that liquidation buyers have access to highly discounted inventory that was previously not available to them without a middleman. Aside from that, buyers can only pay what they want in an auction setup, since most inventory is listed at a fraction of MSRP!
What is wholesale?
Wholesale is the sale of goods to businesses and resellers. The wholesale price is usually fixed, but the amount of product can vary significantly. In most cases, bulk quantities of goods are sold by wholesalers for resale by purchasers. It is imperative to note that the typical consumer does not typically have access to true wholesaling. A lot of liquidation bulk lots are purchased by wholesalers from large liquidators, then broken down and resold to smaller retailers. Often, the merchandise has gone through multiple middlemen before it reaches the smaller retailer or reseller. Businesses may miss out on the most valuable items from liquidation lots due to selective picking since the transfer of goods isn’t nearly as direct!
Benefits of purchasing liquidation inventory
Lot sizes vary
Liquidation lots may range in size from one pallet or even a truckload!
More diverse inventory
Liquidation inventory can come in mixed lots or a mix of different items within a given product category — increasing the excitement! When it comes to liquidation auctions, you can keep your options open if you haven’t found your niche yet.
Inventory that fits your needs
Last but not least, wholesale emphasizes brand new inventory. In liquidation inventory, there can be anything from customer returns and overstock to salvage. Let’s say you don’t want to stock your appliance repair shop with fully-functioning, retail-ready items…you can get the pieces and parts you need for a lot less by securing salvage inventory!
Source the right inventory on BDSTX Wholesale Liquidation auction platforms
BDSTX specializes in connecting returned and overstock inventory from top merchants and manufacturers directly to business buyers. Resellers can bid on pallets to multiple truckloads of inventory across