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Today's marketplace is extraordinarily competitive. Whether you sell merchandise online or in a brick-and-mortar retail store, the prices you pay for inventory can mean the difference between profit and financial ruin. Sole proprietorships and small, family run businesses often have the most to gain - or lose - in the game of inventory acquisition and resale. Thankfully, liquidators have stepped in to fill the gap by providing businesses with high-quality inventory at wholesale prices.

What Liquidators Buy and Sell

In essence, liquidators buy surplus inventory. Sometimes their merchandise comes from a large retailer's overstock, while at other times they buy discontinued items or excess stock from manufacturers. They also buy closeout merchandise when a retail store or supplier goes bankrupt, as well as other circumstances where inventory liquidation comes into play.

There are a number of reasons why large retailers, suppliers, and manufacturers appreciate the services that a liquidator provides. For example, a liquidator will buy a huge quantity of merchandise, giving the original owners the ability to dispose of their entire excess inventory in one fell swoop. There are also times when a supplier or manufacturer does not wish to impinge upon their existing wholesale or retail markets, and turns to a liquidator to ensure that the merchandise does not go through existing sales channels.

As for the types of products that liquidators carry, the only limit is your imagination. Apparel, sunglasses, wedding gowns, and footwear are often in stock, but you might also find flooring, automotive parts, shelving, and other items.

The Buyer's Advantage

For etailers or discount retailers, liquidators provide an incredibly inexpensive source of inventory. Because liquidators pay only pennies on the dollar, even the most expensive items sell at a fraction of their wholesale prices. While some liquidators only sell pallets of a single item, small sellers can take heart in knowing that the best liquidators often sell in much smaller lots. For example, you may only have to buy 50 belts, 20 evening dresses, or 10 wedding dresses.

For the buyer who is an eBay seller, who sells at flea markets, or who has a small discount store, the opportunity to buy in small lots is a godsend. It's extraordinarily difficult to find sources for high-quality, inexpensive inventory, but liquidators enable even the smallest business to sell at a profit. And, when liquidators have closeout sales, you can often get free shipping with a minimum order.

Bridging the Gap

One of the biggest problems that etailers and discount retailers have is finding a reliable source for products. One of the biggest problems that manufacturers and suppliers have is finding a single middleman who will pay cash for excess inventory. Liquidators serve both constituencies, bridging the gap between those who have the merchandise and those who need it for resale. Ultimately, they allow small sellers to stay competitive and make a profit, while enabling suppliers to maintain a positive cash flow and stay afloat.