Liquidation Buying Resources Feed

How to buy liquidation inventory from Walmart

It has almost exactly a year since I've posted here.  What a year it was.  I thought I'd get back in the game by writing a basic post for anyone new to this site. Many people ask:

'How can I buy liquidation inventory directly from Walmart?'

The answer is simple.  Walmart operates their own liquidation marketplace located at https://liquidations.walmart.com.  This is the only site from which Walmart sells excess inventory directly to small business buyers without involving a liquidator middleman.  That makes this the best place to buy since you have direct access to the inventory with no filtering, cherry-picking or other game-playing by a middleman.

In addition, this is an auction site where the bidding on everything starts at $100.  What that means is that you, the buyer, get to name your price, and if you are the high bidder, you win...period.  No negotiations, no bait and switch, just view the manifest in the listing, calculate what you believe you can sell it for, figure out what you can pay to make an adequate profit, and place your bid.  Then you can just sit back and wait for the auction to close to see if you have won at or below your maximum bid.  Yes, that's right, you might bid $3,000 but if the next highest bidder only bids $1,200 then you win it for $1,225! 

What I advise buyers to do is to download the manifest from any listings that look interesting to you and sort it by retail price from high to low.  You will probably find that a relatively small percentage of the items make up the vast majority of the value of the lot, so focus on those.  Next, spend some time looking up these items online to see what the CURRENT selling price is for each of the top items and fill those in an empty column in the manifest spreadsheet.  If there are multiple quantities of any items, multiply the current selling price by the quantity in the manifest to arrive at the total selling price for all units on each line.  Do this for as much of the manifest as possible to get the best estimate of your revenue once you've sold it all. 

Next, estimate your costs related to buying and selling the items.  A big one is likely to be shipping (which will be disclosed to you at the time you are bidding) but also third-party marketplace fees, if that's how you sell, credit card fees if you take payment that way, warehousing, receiving, packing materials, etc.  Once you have a good idea of the costs you can subtract that from the total proceeds you estimated.  If you paid this price, you would basically earn $0.  Clearly, that is not what you want.  So, next decide how much profit you would like to make for the effort involved in buying and selling this particular lot.  Subtract that.  Now you have your maximum bid amount.

But wait, that's not it.  Some people go to auction sites and bid $100, $150, $200, $250, $300.....until finally, they bid the actual amount they have calculated.  That can be extremely tedious and time-consuming.  Walmart's auction site allows you to simply enter your maximum bid amount.  You might be thinking 'why would I ever do that?  I want to get this at the lowest possible price'.  Well, relax, these marketplaces are fully automated and treat your high bid as confidential.  No one else sees that number.  The computer simply places the next bid for you IF someone else bids against you.  It will keep managing your bidding until it hits your maximum.  And again, it will only bid again if someone outbids you and the price is still below your maximum.

So it is all very simple.  The most important thing to remember is to do your homework!  Read listing information carefully and understand the various conditions that items may be in when you receive them.  When you are getting started don't buy 'salvage' product if you don't understand what 'salvage' means.  Now go make some money!


New Macy's Liquidation Marketplace

Macy's is once again operating a liquidation marketplace in the B-Stock Sourcing Network.  The site goes under the name Department Store Auctions and is offering inventory in many categories, including:

  • DRESSES & SUITS
  • HANDBAGS & ACCESSORIES
  • HOUSEWARES & KITCHEN
  • MEN'S APPAREL
  • TEXTILES
  • WOMEN'S BETTER APPAREL
  • WOMEN'S EVERYDAY APPAREL
  • WOMEN'S PLUS SIZES
  • WOMEN'S SHOES

While the auctions are not all starting at reasonable prices, there are definitely some gems available that draw significant attention.

It is definitely worth checking out the site!


New Inventory Liquidation Buying Opportunities

It has been a while since I've posted, and since the last time there has been a mini-explosion of new marketplaces making inventory available to small buyers.  In particular, within the B-Stock Sourcing Network, we have seen a bunch of new launches.

Best Buy:  Probably the biggest of the retailers launching new inventory liquidation marketplaces is Best Buy.  According to a Reuters profile of Best Buy:

Best Buy Co., Inc., incorporated on October 20, 1966, is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its Websites or mobile applications. It has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home. The International segment consists of all operations in Canada and Mexico under the brand names, Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. As of December 31, 2016, the Company operated 1,200 large-format and 400 small-format stores throughout its Domestic and International segments. It has a global sourcing operation to design, develop, test and contract-manufacture its brand products.

The Company's Domestic and International segments have offerings in six categories, such as consumer electronics, computing and mobile phones, entertainment, appliances, services and other. Its consumer electronics category includes home theater, home automation, digital imaging, health and fitness, and portable audio. Its computing and mobile phones category consists of computing and peripherals; networking; tablets; mobile phones, which include related mobile network carrier commissions; wearables, which include smart watches, and e-readers. The entertainment category includes gaming hardware and software, movies, music, technology toys and other software. It offers appliances, such as refrigeration, dishwashers, ovens, laundry, coffee makers and blenders. It offers services, such as consultation, design, delivery, installation, set-up, protection plans, repair, technical support and educational classes. Its other category includes snacks, beverages and other sundry items. The Company's retail stores have procedures for inventory management, asset protection, transaction processing, customer relations, store administration, product sales and services, staff training and merchandise display that are standardized within each store brand.

Needless to say, there is a TON of inventory opportunity here.  It appears that the marketplace is starting with major appliance liquidations but it would not surprise me if the selection expanded over time into other categories.

Pirch:  Pirch is a niche retailer of high end appliances and other home products.  The products available for liquidation look absolutely beautiful and include all varieties of high end appliances.  If you are an appliance reseller, or want to be one, you have to check this site out (https://bstocksupply.com/pirch).  According to Wikipedia:

The company was founded in San Diego, CA in 2009 by a team of businessmen including Phil Roxworthy, James Fikes, and Tom Cavallo, under Rox Design DBA Fixtures Kitchen Bath Outdoor. The team shared the point of view that the appliance retail industry had a need for the re-invention of the complete in-store, shopping and delivery/installation experience, as there was "a void in the marketplace, left by industries that had remained virtually unchanged for decades.”

On February 26, 2013, Catterton Partners (a private equity firm based in Greenwich, Connecticut, known for its funding of companies such as Build-A-Bear, Pop-Chips, Baccarat, Outback Steakhouse and Restoration Hardware), announced its investment in Pirch as a minority shareholder. The transaction accelerated the growth of the retail concept as it began its aggressive expansion across the country.

Pirch has four stores in California, more than any other state, including San Diego, Rancho Mirage, Costa Mesa and the Glendale Galleria. The company's first store outside California, as well as the fifth store, opened in a part of a shuttered Bloomingdale's home store at Oakbrook Center in Oak Brook, Illinois, on March 8, 2014, and a sixth at the NorthPark Center in Dallas, Texas, in part of a former Barneys New York, opened on August 23, 2014. On December 13, 2014, a seventh store opened at the Lenox Marketplace in Atlanta, Georgia, as part of the company's plan to expand its luxury retail stores nationwide.

In March 2015, an eighth location was introduced at the Garden State Plaza in Paramus, New Jersey.  A three-story and flagship location opened in the SoHo neighborhood of New York City, New York in May 2016 as the ninth store.  In May 2017, a tenth store was opened in Austin, Texas at the DOMAIN Northside.

JC Penney:  Of course, who doesn't know this iconic retailer.  According to the inventory liquidation marketplace page:

J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every shopping experience is worth the customer’s time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, customers will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,00 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer.

JCPenney Liquidation Auctions is the official B2B marketplace for the liquidation division of J. C. Penney Corporation, Inc. JCPenney Liquidation Auctions will offer bulk quantities of first-quality/excess and customer returns including: domestics, furniture, rugs, hard goods, apparel, footwear, and much more. Auctions lots are between one pallet and a full truckload. These are the same quality products that are sold through jcpenney.com.

So far, we have seen a pretty wide variety of home products on the marketplace, including:  furniture, window coverings, bedding, kitchen and bath products.  There have been some amazing deals to be had and, given their size, I expect to see much more coming in the future.

Scosche:  The newest marketplace just launched this week (week of August 1).  UPDATE: Site has closed and the company's products can be found at BStockSupply.com.

Founded in 1980, SCOSCHE (pronounced skōsh) Industries is an award-winning innovator of consumer technology and car audio products - committed to delivering superior product quality and functionality, exceptional value and unmatched customer service. The designers and engineers at SCOSCHE develop products that reflect a rich heritage in audio and mobile technologies. SCOSCHE finds inspiration in the California lifestyle, culture, music and people. These influences can be seen in the accessories and products that are now in the homes, offices and vehicles of people in over 50 countries. With over 400 patents/trademarks and industry awards received, it is easy to see why SCOSCHE is consistently at the forefront of technology and innovation.

The Company produces quite a variety of consumer technology products.  While we haven't seen the site live yet, as of the time of this writing, it is reasonable to imagine a wide array of inventory available for liquidation.  From mobile and audio products and accessories to heart monitors for athletes, the company has some amazing products.  We can't wait to see this marketplace go live.

It is a golden age for secondary market buyers of liquidation inventory.  Retailers have a bigger need than ever to move returned, overstocked and other distressed inventory while consumers are more interested in a bargain then they have ever been.  Buying directly from these major retailers is the best way for any entrepreneur to start building a business in the secondary market.


Best Buy Launches New Liquidation Marketplace

Interested appliance buyers should definitely check out Best Buy's new liquidation marketplace on the B-Stock Sourcing Network.  The site looks great and the first listings include 2 single truckloads and one triple truckload lot of customer returned appliances.  They include refrigerators, washers, dryers and microwaves by some of the top brands, like Samsung, Whirlpool and LG.

The bidding started at $100 on each of these lots, so it seems like there will be some great buys available.

The site is located at:  https://bestbuy.bstock.com

Here is a screenshot of the homepage:

Bestbuy liquidation site


Macy's plans to triple Backstage store count

According to an article on CNBC.com written by Krystina Gustafson today, Macy's plans to roll out another 30 Backstage shops within Macy's stores this year.  These will be in addition to the existing 15 stores opened last year.  This is a pretty smart and interesting strategic move by Macy's to leverage what might be their best asset, their locations.  Mall owners should love this, assuming the stores perform.

Most of the other off-price retailers, like TJ Maxx and Ross are located in open-air shopping centers rather in malls.  They have been performing very well since the Great Recession, providing yet another reason for consumers to avoid malls.  According to the article, roughly 2/3rds of Macy's customers spend monty at the off-price chains, so these in-store, off-price shops should draw shoppers back into the malls and the stores, specifically.

I have not been in a Backstage store yet.  It will be interesting to see what product is sold there.  Will it be product that would have otherwise been sent to liquidation--like returned merchandise?  Or will it be 'made for the outlet' product like so many outlet stores do today?  

Time will tell what impact this has on the opportunity to buy liquidation inventory from Macy's going forward.


Macy's Troubles Continue - Impact on Liquidation Inventory Uncertain

Macy's comparable store sales fell 2.1% in November and December, according to its latest earnings release.  The company said it will be closing 68 stores.  These closings are part of the previously announced 100 stores closings.  With some additional restructuring, the total impact on employees will be a reduction of more than 10,000 jobs.  The move is expected to save the company $550 million per year.

There is a decent chance that the store reductions will create a short term bump in liquidation volume, but that is not certain. The company may move inventory to other nearby stores or sell it onsite in closing sales.

Longer term, the continued reduction in revenue will mean a reduction in returned inventory.  Customers can't return what they don't buy.  We will see how things develop, but if they are not able to successfully drive the shift to online fast enough to make up for shrinking revenue in stores, the company will be in for additional pain--store closures and job losses.


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


Liquidation of furniture from the Olympic Village in Rio

This is interesting.  You can now visit https://events.bstock.com and bid on the furniture and other fixtures being used at the Rio Olympics in the athletes' apartments!

There are 31 towers that will house around 18,000 athletes, coaches, trainers, etc.  Each of these apartments is furnished with the basic necessities (beds, couches, chairs, tables, wardrobes, etc.).  All of this furniture will be sold and moved out of the village immediately after the Olympics ends.  Well, you can bid on and purchase, in container load quantities, any of this stuff you like!

In addition to apartment furniture, they are selling crowd  control barriers, lockers, and other random assets.

This is a slightly different marketplace for the B-Stock Sourcing Network, since it is not selling inventory for a retailer or manufacturer, but for secondary market buyers, it represents a great opportunity nonetheless.  Check it out and get a piece of the Rio Olympic Games!


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