Posts Tagged wholesale liquidators
Where Do Costco Returns Go?
Posted by johnb in Closeouts, Liquidations, Wholesale, Wholesale Sources, eBusiness on November 10th, 2009
Many people who are in the business of purchasing product to resell, have often wondered where Costco returns end up. Why is this a common query in the wholesale sourcing environment, and why does this question have any bearing on your business? We will first need to determine what Costco returns are, and why individuals are so eager to get their hands on them. Items returned to Costco stores by customers are Costco returns. Customers return these items for a variety of reasons including that they are not doing the task that they were needed for, they were gifts that were not wanted, or maybe they were broken.
Wholesale liquidators have an agreement with Costco to purchase in bulk, these products that have been returned, and the liquidator in turn will sell them to clients of their own. You can expect to pay the wholesale liquidator anywhere from ten to forty percent of the item’s original price, depending what the wholesale liquidator had to pay for the item.
You can then take these products that you have just saved a great deal of money on, and sell them in the arena of your choice. Different procedures are appropriate for selling different products. There will be those items that sell well using several different methods, so you may increase your exposure by utilizing all of the methods.
You may choose to sell your returns, closeouts, and overstocks at your online store, on eBay, on Craigslist, in catalogs delivered to your neighborhood, at flea markets, at yard sales, or possible at retail store location.
Along with your own experience and understanding of the product, some helpful advice for deciding where to sell your products are: Big ticket items like plasma TVs and other electronics do well on eBay and craigslist.
Flea markets and the internet are great places to market your clothing and accessory wholesale products.
For household products and food items obtained through Costco returns, your best market will be individuals who are searching for inexpensive bulk purchases, so flea markets and local stalls are a great place for selling these products.
For individuals seeking to profit through a retail endeavor, purchasing Costco returns has allowed them to realize excellent financial gains. It is unnecessary to worry about failure to sell items, as you have the advantage of having sourced them at under wholesale cost, and will sell them with little effort. It will be your choice whether you want to go with large quantities and dirt cheap prices, or just concentrate on higher margins of profit, but whichever you select, locating a supplier of Costco returns will be an excellent way to get your business off the ground.
Costco Store Returns Surplus and Fraud
Posted by Wholesale News in Liquidations, Wholesale, Wholesale Sources on August 28th, 2009
Costco realized that they were being regularly scammed with false returns (a problem for many businesses)and felt that they had to do something to protect themselves from the large amounts of fraud being perpetrated upon them.
You need to know the history behind the process in order to understand how the Costco returns fraud was possible. Wholesale liquidation sources are often contracted by most big stores, like discount or department stores, to take shipments of returns or surplus inventory. Surplus inventory can be attributed to many different factors, ranging from geography to overpricing or lack of customer demand for the item. Surplus inventory is considered when pricing is strategized; it is an accepted part of the retail business.
When it comes to returns, however, the situation changes. Because Costco has a lenient return policy and will take returns on unwanted or damaged merchandise without a receipt, they are very open to Costco returns fraud.
Because wholesale liquidators simply sell overstocks and returns in bulk at drastically reduced prices to the public, there is no way to know if a buyer has purchased at item at the liquidators, gone back to Costco and returned it for a full Costco store credit. While Costco returns fraud costs the company millions of dollars, Costco would prefer to keep their lenient return policy as it currently stands; this unfortunately puts the company in a situation with no apparent solution.
Wholesalers and liquidation contractors actually have an obligation to Costco to remove anything and everything on the packaging of any item they receive from Costco store returns surplus to ensure that Costco returns fraud cannot happen. Label sanitation is when this obligation is fulfilled.
As the wholesale supplier is not allowed to tell you that the products you are purchasing from them are Costco store returns or surplus items, you cannot be certain as to where exactly the liquidation products you are purchasing are originally from.
Removing all of the labels and Costco-specific brand name badges creates a lot of work for the wholesale supplier, but agreeing to take the time to do this extra work is why they are able to buy the items at such low prices from Costco stores to begin with.
Sourcing your products by this process is a way that you, as a retailer, can get great discounts on products to on sell in your store. Costco items can often still be identified even after you remove all of the identifying markings, which can assure your customers that the items they are purchasing from you are of high quality and originally from a trusted store.
Some electronics and similar items from Costco store returns and surplus will arrive at the store of the contracted wholesale supplier with markings indicating that they are salvage items on the packaging. This is to ensure that Costco returns fraud is unlikely, not an indication that the quality of the item is low. Most people these days are doing all that they can to get as good a deal for their money as possible; this means that the small tag will not be considered important enough to deter them from making what they will know to be a great purchase.
Using Costco Merchandise When Drop Shipping on Ebay!
Posted by Wholesale News in Ebay, Home Based Business, Liquidations, Wholesale, eBusiness on August 28th, 2009
Outsourcing is key when it comes to transforming your business from one that is insignificant to a serious money maker, as well as being intelligent about the choices you decide upon. Even if you are making decent money now, you can always improve where you stand and expand on what you have, if you reinvest a portion of your profits back into the business. You need to fully understand how to work the system by using drop shipments from Costco on eBay, before you put them to use and begin to expand your business by leaps and bounds.
When you get the opportunity to become affiliated with Costco, you need to be aware that you are about to make amazing profits, and do not get discouraged when the products you sell are inexpensive. Using Costco to work the drop shipment side of eBay is going to yield a positive end result with half of the work.
Many people in our country utilize Costco as a supplier of wholesale goods. Many products that Costco sells is made primarily for them and can’t be purchased in other locations, making them something quite different from a real wholesale supplier. They can price these products any way that they like, because customers can only get them in Costco, and then price anything else inexpensively. Just like any other retail outlet, they often have a surplus of products that they need to sell quickly, and to do this, prices get marked down.
You, too, can become an actual Costco vendor, if you can find a 3rd party that specializes in Costco liquidations. Wholesale sellers that specialize in liquidations, purchase merchandise at inexpensive prices and in large quantities. Advertising that these products originate from Costco and are a return is a huge no-no, though if you are intelligent and look closely at the listing, you may be able to tell that their original source was Costco.
You can use eBay, if you are a seller of merchandise, to make good use of drop shipments from Costco. eBay is an amazing source for people that own businesses that are small and it is used often to stock inventory with bulk wholesale that stems from Costco and can be shipped via drop shipment. It is so simple to utilize drop shipments from Costco via eBay for your customers, because you will never have to handle or stock any of the products that you sell, but instead you will let the supplier know that you have sold something, and they will handle the rest.
Be sure that you are careful in how you advertise your merchandise, because Costco does not like it when you mention them in a listing, leaving them vulnerable to fraud, but you can let your clients know that they are buying wholesale items that are popular and made well, from a well known retail outlet.
Using this system is an easy way to make money surprisingly easy and fast. You need to become fully educated on how to get prices that are inexpensive, and how to work with wholesale liquidators, otherwise you will end up paying far too much money for things like shipment and your profits will definitely begin to dwindle, when you could be making much more money. The chance to become a vendor of Costco is one that you should not pass up, as it is the opportunity of a lifetime.
Why are Wholesale Liquidators needed, and Who are They Exactly?
Posted by Scott in Liquidations, Wholesale, Wholesale Sources on July 3rd, 2009
For products that are needed no longer by the original sellers, or when there are too many of them, wholesale liquidators are the ones that receive these products. These items are received from closing businesses, stores that need to clear away their out of season items, and businesses that have lost all of their money, etc.
A wholesale liquidator is the one to go to when businesses want to get wholesale goods from closeouts. People starting an Ebay store, as well as retail and small time sellers, are able to purchase goods from a wholesale liquidator. You can go online and find countless suppliers that have all of the products you want and need.
When wholesale liquidators can buy large amounts of closeouts, they can sell the goods far below the normal wholesale price. They can still make money even by offering these things at great prices. The goods are sold in quantities that are much smaller than the way they bought them. This can be a great source of products for a new business. Your own business can be started quite simply and cheaply.
In some instances, wholesale liquidators do not hold or even own the goods that are being sold. The are more like brokers for the products. Prospective buyers are shown catalogs that have been created by them with very detailed descriptions and pictures. They buy the goods from their source after they sell it to the customer, and then it is delivered to the customer. Arranging the transportation from the source to the customer, is what their main job entails. A commission is added to the sale price offered to the last buyer by the brokers, and this is the way they make their money.
Wholesale liquidators can be found easily on the Internet. Wholesale liquidators can sometimes be skipped, and goods can be purchased right from the source. Liquidators have already been hired by some companies to deal with their assets. The only direct source for buying from these companies is the hired liquidator.
Commission rates are not made high for his services, and the nature of the brokerage is made clear to the customer when the broker is ethical. Before entering into any business agreement that may be binding, time must be taken to research and find legitimate wholesale suppliers. You can lose thousands of dollars if you don’t spare the time to research a company thoroughly. People that are trying to make a quick dollar, and have no morals, are all over. An actual visit to the company is a great idea, so that you can see for yourself how they are, and know as much about them and their history as you can possibly learn. Another way to learn about the company, is by finding other clients they have and talking to them.
It is just smart to find out everything you can about a company before giving them your money. After all, you want to make money, not lose it on an unscrupulous company. Be on the lookout for offers that seem too good to be true. When you are wary and calculated, you will gain much more than you could ever lose.
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