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Market Conditions Affecting Liquidation Products
The retail marketplace has been spread thin between big box retailers, small specialty stores, and the always growing online marketplace. Retailers can no longer afford to write off millions in unsold and returned inventory. The vast majority of retailers have addressed this issue with in house liquidations and online retailing their return and unsold inventory.
In House Liquidations is simply having deep discount sales in house. This is practiced by many apparel retailers. Some will discount as much as 70% to 80% off retail at the end of the season to get bargain conscious buyers to clean off the racks. Most of the best brands and sizes get snapped up leaving the liquidation lots full of undesirable private labels and odd sizes.
Online Retailing Returns and Overstocks is used by many retailers to extract maximum prices from their return and overstock inventory. Certain categories like electronics, tools, and housewares do especially well. Many retailers now remove the majority of these premium items out of the loads for online retail before shipping them as truckloads. The leftover loads are difficult to profit from.
Online Wholesale Auction Sites offer major retailer and other inventories for sale. The problem with some of these platforms is most anyone can sign up to bid. Uninformed bidders can push prices on loads way higher than they should be. Liquidation product is only profitable if it is bought right. Do you really want to purchase your stores inventory by being the highest bidder?
Trends point to fewer premium sellable items in the loads and higher prices for many loads, especially those sold on auction sites. These trends probably wont change. It could get worse as the retailers step up the processing on the returns and overstock loads leaving less and less in what goes out in the trucks.
All Prime Products is one of the few liquidation companies in the country that focuses on unprocessed loads. The only market left with strong profit potential since the premium items are not removed from the loads and the loads are not sold to the highest bidder.
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