Many whose business is buying and selling are convinced that wholesale suppliers give them the best advantage by obtaining great deals and source items at the least price. In many cases this is true, but oftentimes you will find that other channels may provide better prices on goods to resell, with better profit and less effort involved.
You may source products at prices less than wholesale through merchants of closeouts, overstocks, and liquidations. Further, some wholesale suppliers may deal in these products as well, but it is possible that you simply were not aware that they did. Sourcing these items may increase your profits, but there are some things of which you need to be aware before jumping into the world of closeouts, overstock items and liquidations.
When you have decided to source your wholesale products, including overstock items, closeouts, and liquidations, it is important that you determine that you are dealing with the base source. If you do not know for certain that you are buying from the base source, you may find that you are paying marked up prices for products which do not need to be so expensive.
Now, this does not imply that you should go directly to the business which is the source of the overstock items, since most companies have strict supply agreements with wholesale liquidators, giving them exclusive rights to the products. These wholesale liquidators will be the source of overstock items for retailers.
The following are some suggestions to assist you in beginning to source overstock items:
1. Question the stores to determine just who purchases their overstocks and returns. While sometimes they will be very secretive, very often they will happily provide the information you request concerning the contact information of their overstock items merchants. As an aside, some of the larger stores will not disclose where or how their overstock items are processed due to a fear of scams involving returns.
2. Find out from the stores how they dispose of their overstock items. They may not tell you directly where the overstocks are sold, but you can discover whether they use a wholesale supplier, simply discount the products themselves, or ship the items to their own outlet stores.
3. If you are positioned such that you want to begin dealing in overstock items, you should question the store about the process of becoming a supplier. Normally, you must have some type of business established and be able to convince them that you have the financial wherewithal to purchase large volumes of stock.
Research the situation. While many overstock items may not be advertised as being from the store from which they were obtained, if you are familiar with your product ranges, you should be able to connect the products to their source. Understand what you want to purchase and be informed of the proper prices to pay and you will be well on your way to success in reselling overstock items.
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