Key Elements of the Liquidation Process

What is liquidation inventory?

When a business is closing down or has excess inventory, it may slash prices to entice buyers. If a business has exhausted this option and wants to clear out stock more quickly, liquidation is an excellent option. Liquidation companies provide immediate payment for excess stock, and find the appropriate channels to sell these goods.

Who is involved in the liquidation process?

The main parties involved in the liquidation process are generally wholesalers, online sellers, retail shops or traders. Buyers seek out liquidated inventory to find excellent deals on niche items– everything from clothes and electronics, to office furniture and industrial equipment.

What is wholesaling?

Wholesaling involves the sale of goods to resellers and businesses, usually in bulk, to be retailed by others. The process does not immediately involve normal, in-store shoppers. The wholesaler works as a middleman, managing deals across various buyers. Wholesalers frequently purchase large bulk lots from liquidation companies, and redistribute them in smaller lots to their buyers.

What are closeouts?

Closeouts consist of two main types of goods: salvage items and job-outs. Salvaged merchandise consists of damaged items, customer returns and sample products. Even though a percentage of these items may be damaged, they can still be re-sold depending on the condition and the target buyer. The second type of closeout goods, job-outs, consist of unsold goods. Closeout goods are often sold in bulk to other retailers at a reduced price.

Have excess inventory? Out of business? Ideal Trading can help. Our liquidation specialists help businesses get the best return on their assets. 973.343.6684 – Contact us today!