Why You Should Consider Purchasing a Truckload of Liquidation Goods
As a liquidation buyer, you have many options when it comes to purchasing inventory. You can buy case packs, single pallets, or even multiple pallets that can fill an entire truck. But have you considered buying a liquidation truckload? Purchasing a truckload of liquidation goods can be a cost-effective way to buy large amounts of inventory at once, directly from retailers or manufacturers. In this article, we will discuss the benefits of liquidation truckloads and important considerations to make before you bid on a truckload auction.
What is a Liquidation Truckload?
A liquidation truckload is a large amount of inventory that is sold directly from retailers or manufacturers. In a full truckload, the trailer is dedicated to one shipment only. While the amount of inventory in a full truckload varies, it's usually around 24 pallets. However, one single appliance truckload can hold anywhere from 50 to 100 different washer/dryer units, refrigerators, and other major appliances. On the other hand, one single apparel truckload can have hundreds to thousands of different products in various SKUs.
Benefits of Liquidation Truckloads
1. Larger Product Offering
Purchasing liquidation truckloads allows you to branch out into different categories. If you already carry home improvement goods, you can add appliances to the mix. By expanding your inventory with items that are often sold together, you make the most sense to your customers.
2. Attract and Retain Customers
By offering products that complement each other, you position your business as more valuable to customers. For example, now DIYers and contractors know they can come to your store for appliances they may need. You eliminate the possibility of shoppers heading to the next store to make their other purchases.
3. Increase Sales
If you can offer more inventory, you have the potential to make more sales. But it's important to make sure you don’t sit on inventory. So make sure you promote your products accordingly and are ready for the increase in inventory.
4. Save on Per Unit Costs
When you buy more liquidation goods at once, you end up saving on the per unit cost of the merchandise. For example, truckload buying can save on per-unit costs with more efficient stacking of appliances. When you purchase goods in bulk, you pay less than shipping each individual item or series of items.
5. Less Frequent Ordering
With a truckload purchase, you won’t have to spend time or money placing several smaller orders. Shipping costs are always a big expense when it comes to purchasing inventory for your store. Buying a full truckload means you only pay shipping once!
Important Considerations Before Bidding on Liquidation Truckloads
1. Take a Look at the Budget
Liquidation truckloads may require more of an upfront investment than you’re used to. Remember to take a look at the manifest to calculate how much you’re willing to bid. Take into account the estimated retail value of goods, quantity, and the current going rate on the secondary market.
2. Consider Inventory Management
Getting more inventory at once comes with its benefits, but you want to make sure you have a way to manage that amount of inventory. Proper inventory organization is crucial so you know what’s in stock, running low, and what needs to be ordered.
3. Think of Storage
Generally, residential deliveries are prohibited as a buyer must have access to a receiving dock for full truckload shipments. This means you will need to ask a few key questions about space and storage.
4. Plan for How You Will Sell Inventory
More inventory to move calls for new and innovative ways to promote your products! If you have your own warehouse, you can advertise a warehouse sale where customers stop and shop in person. If not, consider selling online through your own website or popular online marketplaces.
5. Research and Verify the Source
Before purchasing a liquidation truckload, it's important to research and verify the source of the inventory. Make sure that the retailer or manufacturer is reputable and that the merchandise is in good condition. It's also a good idea to ask for a manifest, which lists all the products in the truckload, along with their quantities and descriptions.
6. Know the Terms and Conditions
Make sure to read and understand the terms and conditions of the auction or sale before bidding or making a purchase. This includes details about payment, shipping, and any potential returns or refunds. Knowing the terms and conditions upfront can help you avoid any surprises or issues down the road.
Conclusion
Purchasing a liquidation truckload can be a great way to expand your inventory, save on per unit costs, and attract and retain customers. However, it's important to consider the budget, inventory management, storage, and how you plan to sell the inventory. It's also crucial to research and verify the source of the inventory and understand the terms and conditions of the sale. With careful planning and consideration, buying a liquidation truckload can be a smart investment for your business.
FAQs
- What is a liquidation truckload?
- How many pallets are usually in a liquidation truckload?
- What are the benefits of purchasing a liquidation truckload?
- What should I consider before bidding on a liquidation truckload?
- How can I sell the inventory from a liquidation truckload?