Liquidation Buying Tips Feed

Costco Liquidation buying opportunity...THIS WEEK (1/16-1/19)

If you are not registered on the Costco Liquidation Marketplace, I highly recommend you do so RIGHT NOW!  This week will be your best opportunity all year to buy incredible inventory at great prices.  With holiday returns flowing through the marketplace in high volume, prices are sure to be very attractive!

According to Wikipedia, as of September 1, 2017, Costco has 746 warehouses, worldwide:

  • 518 in 44 states in the United States and Puerto Rico
  • 98 in nine provinces in Canada with revenues of more than $17 billion in 2014
  • 37 in 18 states in Mexico
  • 28 in the United Kingdom
  • 26 in Japan
  • 13 in South Korea
  • 13 in Taiwan
  • 9 in Australia
  • 2 in Spain
  • 1 in Iceland
  • 1 in France

Another interesting claim that Wikipedia makes is that Costco is the first company to go from $0 to $3 billion of revenue in under 6 years.

All that being said, what is important here is inventory, inventory, inventory.  Get registered on the marketplace now...you will not be disappointed.


Liquidation appliances: A huge opportunity right now

Appliances, Appliances, Everywhere!

The secondary market for appliances has never been better for resellers.  Just 7 years ago, Sears was the largest appliance retailer in the country.  They not only sold their branded products, but they sold primary and secondary stock from other major manufacturers.  They were the channel of choice for manufacturers wanting to flush excess inventory out of their warehouses and 5+ years ago would basically get their pick of any excess inventory their suppliers had.

Today, things are different.  As you certainly know, Sears has been struggling.  They have been closing stores steadily for many years.  In addition, their secondary market purchasing of appliances has dropped substantially.  This has created a huge opportunity for resellers to step in and fill that gap.  One nice side effect for resellers is that,  with Sears out of the market, the supply and demand dynamics have changed substantially.  This has resulted in prices dropping across the market.  Liquidation appliances are available now at better prices than at any time in the past 5-7 years.

Try Appliances

If you have the space and equipment to handle the inventory, I strongly recommend you take a look at this market.  Consumers are still upgrading old appliances and are still motivated to trade down to 'like-new' dent and scratch models to save money.  So consumer prices are holding up well.  The difference is just that now you can buy this inventory at a lower price.

Here are several marketplaces that you can use to research and source major brand, secondary market appliances.  Brands include Samsung, LG, Frigidaire, Kenmore, Whirlpool and others:

You can also see all listings across the B-Stock Network aggregated in one place by going to http://sourcing.bstock.com.  Use the category filter for appliances to limit the results to this category.  Good luck!


Appliance liquidation inventory is everywhere

Changes in the retail market for appliances is causing some huge opportunities for buyers in the secondary market.  Specifically, there have been certain very large retailers out there who, for the past decade or more, have been the biggest buyers of excess inventory from the manufacturers.  Those manufacturers came to rely on these retailers to soak up all of their excess appliance inventory.  Even though they were getting low recovery prices on the product, they enjoyed the benefits of this symbiotic relationship.

The reason this was symbiotic is that manufacturers have to keep production lines going.  The closer to full capacity they can keep their plants, the lower they can drive the cost of their finished units.  This enables them to remain competitive with their pricing in the market.  The issue they face is that their dealer networks can't always absorb all of that production and the result is that the dealer channel becomes saturated and has to slow down their buying.  When this happens, the manufacturers warehouses start filling up with the excess inventory they produced.  This is where these giant retailers come in.  They love to create compelling opportunities to draw consumers into their stores, and one of the best ways to do this is via big sales.  The bigger the better.

So, the retailers have a relationship with the manufacturers whereby they agree that they will take any overproduction but they will pay a very low price.  This is a huge help to the manufacturer since it helps to work off that inventory piling up in the warehouse (or avoid having it pile up to begin with).

So What's the Problem?

It is no secret that retailers are facing some serious headwinds lately.  Too much retail square footage per consumer is one problem that has come from over building in the industry.  Another headwind is the intense competition that has developed in the industry, particularly coming from newer online players.  Some of these online players are rewriting the rules around what it means to be customer-centric.  These new policies, including very liberal returns  policies, are driving down operating margins for everyone.  In the case of some of the biggest players in the excess appliance inventory ecosystem, this financial pressure is causing them have to pull back from the symbiotic relationship described above.  And THIS is why we are now seeing a flood of inventory being made available in the secondary market more broadly.

This inventory has to go someplace.  It has to continue moving towards consumers and eventually land in homes across the United States.  Too many companies lose too much money when this product stagnates in warehouses to have it just continue to build up.

So, if you are a small appliance dealer and you want to broaden your selection to include more dent & scratch, returned or overstock inventory, right now is a golden age for you.  Several of these companies have created their own online liquidation marketplaces through which you can buy lots for significant discounts.  Take a look at the B-Stock Sourcing Network for the biggest selection of these marketplaces.


Home Depot e-Commerce Returns Liquidation Lots

Anyone who has bought Home Depot store returns and .com returns will appreciate the higher quality of this e-commerce merchandise.  The .com merchandise is really head and shoulders above general store returns.  I've noticed lately that the .com lots they are selling on their official liquidation marketplace are going for similar prices to the stores merchandise.  This is a clear indication of a great opportunity to score some killer deals.

The .com loads are currently truckload only quantities and, as of the date of this post, they are mixed categories.  However, in around 3 weeks time they are telling me that they will be offering category sort truckloads.  This will be a huge improvement for most buyers who can't deal with items across the wide variety of categories.

Get registered now and bid on some of these .com loads.  I think you will be very pleased with what you get.  Great money-making opportunities here.

Ecommerce returns lot


Brand new appliances available for liquidation

There has been a very significant quantity of brand new (slightly older model) appliances selling on BStockSupply.com over the past month or two. The lots seem to be continuing and the inventory looks fabulous.  Dishwashers, refrigerators, washers and dryers have all been available in various quantities. Brands represented include:  Frigidaire, KitchenAid, Whirlpool and many others.  I would highly recommend taking a look.

Appliances


Great apparel buying opportunities

The apparel industry has been taking quite a beating over the past few quarters.  Companies like Macy's have reported real weakness in sales in this vertical.  On May 12, a Fortune headline read, "Kohl's Joins the Retail Bloodbath With Dismal Sales", as further weakness in sales hit the company hard.  In fact, at the time, Kohl's shares were down by 50% from their 52 week high. The Gap has suffered similarly.

As Fortune said, "What these companies have in common is that they are very reliant on apparel, a category with an industrywide oversupply that has led retailers to discount, discount, discount to win business."

Of course, this has created a massive opportunity for secondary market buyers.  There has never been so much quality inventory flooding the market and it is driving prices down.

Two new marketplaces have launched in the B-Stock Sourcing Network that can help you take advantage of this golden opportunity.  HSN and QVC have both launched new liquidation marketplaces.  They are selling a wide variety of goods, but apparel is a big part of it.  Lots are large and small, new and returns.  They have something for everyone.  You should definitely check them both out.

HSN Liquidation Marketplace: https://hsn.bstock.com

QVC Liquidation Marketplace: https://qvc.bstock.com


New liquidation marketplace in Europe

B-Stock Solutions has launched a new marketplace in Europe, called A2Z Liquidation Auctions.  If you take a close look at the site and its terms and conditions you can see that the seller here is Amazon.  There is a great mix of product available on the site. It includes new product as well as returns in a variety of lot sizes.  The product is located in the UK, but they seem to be shipping all over Europe.

I highly recommend that you get registered to buy right away.  There are some amazing deals available here.


Inventory Buildup Continues in Q3

According to the Commerce Department report released today, businesses accumulated another $90 billion worth of inventory in the third quarter.  This is an upward revision of the $56.8 billion reported last month.  Over the prior two quarters the total increase is over $100 billion.

This just heightens the importance of this holiday season to retailers and manufacturers.  If consumer spending doesn't materialize as planned, the amount of excess inventory that will be available in the secondary market could be truly epic.  Of course, if spending DOES materialize, the amount of customer returns we will see in January and February will also be off the charts.

Either way, secondary market players are poised for a great few months.  Hopefully, you have been heeding our advice to begin accumulating capital to be prepared to make some major buys this season.  After all, money is made in the secondary market when you buy, not when you sell.  If you can be buying at times of swollen supply you will get better deals and make more money (since the prices to end consumers will be little changed).