There is a constant source of bargain merchandise available. However, finding reliable wholesale closeout liquidators or other profitable merchandise such as surplus and drop ship can be a mine-field. The problem is you have to pay for the products in advance of shipment. Then you hope you don’t get stuck or spend the next several months getting your money or credit back. C.O.D. shipments are not practical on a large scale or to assure quality.
You’ve heard the nightmares… or lived them! Here are some practical tips for finding the RIGHT suppliers:
Find out as much as you can about the wholesaler’s business and reputation. Let’s face it, the nature of the wholesale closeouts and liquidation merchandise can lead you to undesirable business relationships. But there are many good wholesaler closeout vendors out there and many of their customers are making high profits on quality products. Research, research!!
Ask for information on the company. If a potential wholesale supplier is reluctant to give you financial information, such as Dunn & Bradstreet, then you need to stay away from them. It is normal for businesses to give out this type of information. If they hesitate… you back off.
Also, ask for references of existing customers… but remember most all wholesale closeout liquidators have some satisfied customers. The key is to ask specific questions.. not just “are they OK to do business with?”. Instead, ask: “Out of the last 100 products you bought from xyz company how many warranty or returns did you have?”.
Buy samples first. We all want to move as fast into a business area but use caution and have sample sent first. Again, all wholesale closeout liquidators will have some good samples to send. Don’t just rely on this. Samples give you a basis for quality. You will expect all future shipment to be of equal quality. Without samples the wholesaler can say “well you knew this was closeout and liquidation merchandise”.
Finally, ask others in this business. There are groups that can be of great help. Find one with at forum or blog and let others advise you on the specifics of who to use and who not to use. Don’t reinvent the wheel… so to speak.
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