Wholesale Liquidation Ecommerce: What is It?

One of the biggest challenges of any Ecommerce business is maintaining the balance between inventory and costs. How do you manage how much you invest in inventory, how much you keep on hand, and when to order more inventory to ensure you have enough to meet demand? For many Ecommerce business owners, this is a challenge they must constantly work to meet.

However, wholesale liquidation Ecommerce is a fairly simple solution to this common challenge. Wholesale liquidation Ecommerce is stocking your site with products that you purchased in bulk at deeply discounted pricing—even more so than typical clearance. 

Sites like eBay and Amazon have made a fortune based on this business model and your business can too. In this guide we’ll cover the basics of wholesale liquidation Ecommerce and how you can take advantage of this opportunity to grow your business. 

Wholesale Liquidation Ecommerce Explained

Wholesale liquidation is more than just purchasing large quantities of product at a much lower price. These items are priced down because retailers are trying to clear their shelves of surplus inventory, and they’re willing to take the loss to do it. Their loss is your gain.

This is your opportunity to build up your inventory at a fraction of the cost. By focusing on wholesale liquidation, you’ll save so much over time that you don’t have to worry about spending too much before you’ve sold. 

Where to Find Wholesale Liquidation Inventory

Major retailers that typically carry huge inventories often partake in wholesale liquidation sales to clear out their stock. This includes stores like Target, Lowe’s, and even tech companies like Microsoft and Dell. 

The best part is that you don’t even have to do a lot of work to take advantage of these liquidation sales. Companies like Direct Liquidation provide an easy way to source liquidation inventory for your business—from buying Walmart liquidation merchandise to stocking up on niche products from sellers in your industry.

You can purchase wholesale inventory by the truckload, palette, or box based on your needs at the time. Which is the best buying option for you will depend on the specific product and your consumers’ demand for those products. 

Benefits of Wholesale Liquidation Ecommerce

If you’re not sold on the idea of wholesale liquidation Ecommerce just yet, let’s dive a bit deeper into the benefits of this business model: 

• Increase profit margins: By purchasing inventory at low cost (without sacrificing quality) and being able to charge the full value of the product sets you up for higher profit margins. Greater profit margins means more earnings to go back into growing your business. 
• New, high-quality merchandise: It’s understandable that quality may be a concern that purchasing products so cheaply and at such a high volume would require a sacrifice in quality. However, that’s not the case. These products are simply surplus inventory, still in its original packaging and new condition, so you can sell confidently to your customers.
• Easy purchasing: Since these items can be bought in such large quantities, you can make fewer orders. Not only that, but you save a lot of time, since you’re not constantly shopping for new items to add to inventory. This simplifies your ordering process and let’s you shift focus to other aspects of your business.
• Accessible for virtually every industry and niche: Wholesale liquidation inventory isn’t just reserved for electronics and apparel, there is a broad range of merchandise categories. From toys to beauty products, there is plenty of variety for Ecommerce sellers of all types. Whether you sell on a marketplace or have your own online store, wholesale liquidation inventory is likely a smart option for you.
• Direct, affordable shipping: When you purchase in large quantities, especially by the truckload, merchandise can often be sent directly to you. By purchasing in one lump sum, you can also save on the costs associated with shipping that you may otherwise incur for the same products over a longer period of time.

How to Make Wholesale Liquidation Ecommerce Worthwhile

If you’re not moving a lot of product at a fairly regular pace, investing in wholesale liquidation Ecommerce wouldn’t really exactly make sense. So, how do you reap the benefits of purchasing wholesale merchandise to grow your business’s profits? Here are a few guidelines to follow:

• Invest in marketing efforts: Drawing new and repeat customers to your business should be a top priority if you are going to partake in wholesale liquidation Ecommerce. The best way to do this is investing in marketing efforts such as social media marketing campaigns, email marketing, and paid search. By increasing the traffic to your website, you can get more customers and increase sales.
• Create a user-friendly website: A clunky, difficult to navigate website is going to hurt your sales. It’s worthwhile to ensure that you have a user-friendly website in place before you start selling—or focus on upgrading your site as soon as possible. When sites are difficult to navigate or have glitches while trying to check out, customers are much more likely to abandon their cart and shop with a competitor. Having an outdated or cheap-looking website can also hurt your trustworthiness as customers may question the legitimacy of your business or the site’s security. In fact 94% of people say that poor website design is a source of loss of trust in a website.
• Carefully set pricing: It can be tempting to further increase your profit margins by setting prices as high as possible. Understandably, you want to make as much off your investment as possible, but consider fair market value when setting pricing on your site. Otherwise, you could lose out on sales to competitors, which, overtime could be detrimental to your business model. 

By strategically investing in and selling wholesale liquidation merchandise, wholesale liquidation merchandise can help you take your business to the next level. 

Get Started

Wholesale liquidation Ecommerce is an innovative way to make money through online sales. Take the next step in growing your Ecommerce business and start purchasing wholesale liquidation merchandise. By following the recommendations in this article and creating a plan for what you’ll purchase and from where, you can use this opportunity to your advantage. Take your time to create a strategy (and make sure your site’s up-to-date), but don’t take too long or you might miss out.

Alexis Maness

Alexis Maness has a Bachelor of Science in Integrated Marketing Communications and is a contributing editor for 365businesstips.com. As a professional content writer, she has over five years of experience and is a contributing writer for several San Diego magazines. Alexis specializes in topics related to business, marketing, finance, and hospitality and tourism.