The Reason Why Liquidators of Wholesale Closeouts, Overstock, and Returns Can't Find Merchandise
Today liquidators of consumer items are having great difficulty finding merchandise to fill up their warehouses. This is the major reasons why: In the present time the question is that how to reduce retail returns ?
Major retailers need to find a way to stay in business. The supply chain has only one place left to squeeze money from. The end of the supply chain for distressed inventories has in the past been seen as a liability. Overstock, Closeout, Customer Returns known as Salvage have been sold off in wholesale bulk lots to liquidators. This salvage merchandise was sent to return centers and palletized. The pallets would be made into lots which were given a Bill of Lading. The salvage Bills were purchased by liquidators. The liquidators would sell the overstock and closeout products in the secondary marketplace to outlet stores, flea market vendors or auction houses.
The Retailers were glad to dispose of the distressed product. Usually their were agreements between the Retailers and the Vendors. They would take a mark down on the returns, overstock and closeouts. This was cheaper then shipping the product to the manufacturer.
The retailers have found that their is value in the salvage products. Their are third party service providers that process the merchandise. Some of the higher value products are remanufactered. Their are online marketplaces where wholesale lots are bid on. These marketplaces generate greater revenue for these distressed inventories. The liquidators are less merchandise available.
This trend will continue as the growth of the internet brings these wholesale lots directly from the retailers return centers to the discount and salvage retailer. The traditional middleman (liquidators and trading companies) will be replaced by third party service providers. The only way for liquidation companies to have continued growth will to change their business model to fit the changing retail business environment.
If a liquidator realizes NOW that they have to add value to the merchandise they have just bought and sold in the past.
Major retailers need to find a way to stay in business. The supply chain has only one place left to squeeze money from. The end of the supply chain for distressed inventories has in the past been seen as a liability. Overstock, Closeout, Customer Returns known as Salvage have been sold off in wholesale bulk lots to liquidators. This salvage merchandise was sent to return centers and palletized. The pallets would be made into lots which were given a Bill of Lading. The salvage Bills were purchased by liquidators. The liquidators would sell the overstock and closeout products in the secondary marketplace to outlet stores, flea market vendors or auction houses.
The Retailers were glad to dispose of the distressed product. Usually their were agreements between the Retailers and the Vendors. They would take a mark down on the returns, overstock and closeouts. This was cheaper then shipping the product to the manufacturer.
The retailers have found that their is value in the salvage products. Their are third party service providers that process the merchandise. Some of the higher value products are remanufactered. Their are online marketplaces where wholesale lots are bid on. These marketplaces generate greater revenue for these distressed inventories. The liquidators are less merchandise available.
This trend will continue as the growth of the internet brings these wholesale lots directly from the retailers return centers to the discount and salvage retailer. The traditional middleman (liquidators and trading companies) will be replaced by third party service providers. The only way for liquidation companies to have continued growth will to change their business model to fit the changing retail business environment.
If a liquidator realizes NOW that they have to add value to the merchandise they have just bought and sold in the past.
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