How do I get access to these returned & unsold goods? Is ...

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How do I get access to these returned & unsold goods? Is anybody making serious money with Liquidation Merchandise? Where do all those goods being sold on eBay, Amazon & Poshmark come from? WHAT HAPPENS TO THE BILLIONS OF DOLLARS IN RETURNED & UNSOLD GOODS EACH YEAR? 877.202.3616 [email protected] • viatrading.com • 2520 Industry Way, Lynwood CA 90262

Transcript of How do I get access to these returned & unsold goods? Is ...

How do I get access to these returned & unsold goods?

Is anybody making serious money with Liquidation

Merchandise?

Where do all those goods being sold on eBay, Amazon

& Poshmark come from?

WHAT HAPPENS TO THE BILLIONS OF DOLLARS IN RETURNED

& UNSOLD GOODS EACH

YEAR?

[email protected] • viatrading.com • 2520 Industry Way, Lynwood CA 90262

What are Secondary Channels? Primary channelsrefers to regular Retail Stores, Chains or e-commerce retailers where many of us purchase our consumer goods

Secondary Channelor Markets where many aged, discounted, used, open-box or refurbished goods are sold are referred to as Secondary Channels.

eBay sells vast amounts of secondary channel goods as do flea markets, auctions, yard sales, thrift stores, discount bargain stores & more. Other than eBay, sellers also use channels such as Amazon, Facebook sales groups, Offer Up, Craigslist & many more to sell Liquidation merchandise through

It Gets Liquidated!Each year retailers (including e-retailers) end up with massive amounts of merchandise which is returned by their customers or remains unsold in their stores and warehouses. Only a small % of those end up being resold by the stores or manufacturers in their factory outlets or their own discounted online channels. A portion is also re-sold to Big Box Discount stores such as TJMaxx or Big Lots but the large majority is Liquidated in the Secondary Channel

Combined value of merchandise which (e)Retailers need to liquidate each year exceeds $300 Billion. Though a % of those goods are physically destroyed or donated, the majority are re-sold to Liquidators & through secondary market Liquidation Channels.

$300 Billion+

Must be liquidated

every year!

Pro Tip

“Use Your PeopleBuild a good relationship with your Account Manager and have them recommend items.

Be SeenUse as many resale channels as you can to move the product eBay, Amazon, your own website.

Know Your StuffWhatever program you decide to sell, learn the program – every program is different. Get to know the product and what to expect.

Customers FirstCare about your customers. If you have to take a hit on something, take it. Don’t sell the crap to your buyers if you want people to come back – we always take the hit to prevent our customers from getting hurt. If you focus on that, everything else works out.

Do The MathThen of course, focus on getting the best price and the best product for your customers. If you’re buying manifested goods, look at how much you’re paying per item. This will help you figure out your profit margin.

Be SocialPost in Facebook groups.There is a lot of business to be made there.

Pro Tips

Case Study

NathanFlorida

From Pallets to Truckloads & BeyondSome of the most successful businesses are often born out of a complete accident! Meet Nathan of Central Outlets in Florida. Until 2014, Nathan was an IT technician for small businesses, repairing office hardware. One day, he accidentally broke a client’s computer and set out to replace it – unbeknownst to him that this would be the beginning of a new successful business venture.

He stumbled upon a pallet of broken computers from a liquidator. He purchased it, fixed his client’s computer using the replacement parts from the pallet, and focused his attention on repairing the rest of the laptops on the pallet. Skilled at repairing hardware, he was able to restore almost all units to like-new condition and sold them on eBay for almost full price. Just like that, Nathan saw an opportunity to change the course of his career, and his resale business was born.

For a year, he and his wife focused only on electronics – buying returns and damaged items, repairing them and reselling them for profit. His second purchase from Via went so well that he rented a storage facility to handle the influx of inventory that was now flowing through his doors. “I have to hand it to my account manager,” says Nathan. “He educated me on the difference between online returns versus store returns and that made all the difference in my business. My account manager hand-selects loads for me now because he knows what works for me.” Within weeks of opening his first 1800 sq. ft. warehouse, his wife quit her job to join his burgeoning business. By the end of the first few months, they had purchased and sold through 3 truckloads of merchandise, and were continuing to grow.

Nathan had identified the lack of wholesale liquidators in his geographical area, and with his Account Manager’s encouragement, decided to cater to that need. In tandem, his wife came up with the idea of holding a public outdoor warehouse clearance sale. Nathan multiplied his operation by ten in one year. He started out with 4 pallets, and most recently purchased 4 truckloads within the span of a few weeks.

He then launched a website where he sells clothing, household items, electronics and general merchandise at retail, and quickly launched a second website just for wholesaling in and around Tampa, FL. He recently started advertising on vertical wholesale search engines like WholesaleCentral.com and has now established himself as a competitor to his own suppliers!

Who Buys Liquidation Merchandise?

Shoppers want deals & discount selling is a big business. Entrepreneurs venturing in retail sales have a lot to compete with & need an edge. Sellers in secondary market channels such as flea markets, swap meets, yard sales, thrift stores, discount stores, ebay, craigslist, facebook & many more have found a way to succeed by sourcing liquidation merchandise at a fraction of the original cost. Liquidation goods can be broken down into 3 macro categories.

Overstocksgoods which have been displayed for sale in in a retail environment but have remained unsold for a variety of reasons, including being discontinued, end of season, packaging change etc.

Shelf-Pullsgoods which have been displayed for sale in a retail environment but have remained unsold

Customer Returnsgoods returned to retailers by the customer. Goods are returned for a variety of reasons and can be in varying conditions

3 Main Product Conditions

Shelf-Pulls

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Scratch & Dents

Missing Parts

Always in Original Retail Packaging

Additional Clearance Tags

Blemishes & Imperfections

Excessive Signs of Handling

Defective

Open/Damaged Packaging

Overstocks

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Customer Returns

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Why PurchaseLiquidation Goods?

Profit Potential liquidation goods are available at a fraction of their original cost & substantially less then their original retail value. This allows sellers to be very competitive & offer significant bargains to their customers and maintain a higher than usual retail margin.

Variety typically liquidation goods are sold as very varied and assorted lots. This allows much faster sell through and cash flow turn. Buyers typically do not get stuck with massive quantities of a single sku. Flea market vendors can often sell through their entire pallet in a single day since there would be very few repeat items.

Scalable Business limited barriers to entry for entrepreneurs wanting to venture in reselling liquidation merchandise. Liquidation goods are available to be purchased in multiple sized lots. Buyers can start with a single case and work up to pallets, multiple pallet lots and then full truckloads. No need for a business license to purchase.

Steady Supply merchandise is always being returned to retailers and retailers always have unsold goods being liquidated. There is typically a consistent supply of offers on the market to feed your business which is a big advantage when planning for your business & its growth.

Famous Brands SoldBy Major Retailers most liquidation goods are generated from famous Fortune 100 Department stores and e-Commerce retailers. These stores sell well known & popularbrands whichalready havea customerbase.

Lower Initial Investment you can fill up a 1500 ft2 retail store with a single assorted truckload and get your business going.

Immediate Shipping generally speaking Liquidation merchandise is only offered once it is ready, implying that once you purchase the goods they are ready to ship almost immediately and you can be reselling them within 24 hours.

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7Research the items

you are sellingYou know what you’re paying for the items but you don’t always know what

they’re actually WORTH. Instead of just sticking a price tag on them that “sounds” like a price you’d be happy with, take some time to research what the

items originally sold for. This will help you price them accordingly and you can also use the original retail price as an incentive to your customer.

“Originally $149 – Now only $49!” for instance. Often times retailers just count the number of items they received in a lot, to calculate their desired return on

investment without factoring in what the goods are actually WORTH. Chances are you’ll be able to make a higher profit margin by taking the time to research.

Pro Tip

“CustomersFocus on your customers. Buy what they want and what they’re looking for. As your customer base grows and changes, make sure you get to know them, talk to them, research them and cater to them.

People TalkDon’t underestimate the power of word of mouth. Advertising costs money but happy customers will tell their friends and everyone they know.

No LimitsNever limit what you can do. You can always do more, and your initial idea might look nothing like the finished product but don’t be afraid to dream big.

Look AheadKnow your customers but don’t limit yourself to the customers you have. Cater to the ones you have and expand your inventory to attract new ones.

Pro Tips

Case Study

GabyCalifornia

How Gaby Turned a Hobby Into a Profitable Home-based BusinessPeople enter the liquidation industry from all backgrounds and walks of life – often not on purpose! Gabriela Viramontes stumbled into the liquidation industry a few years ago and has never looked back, though she never thought she’d be selling merchandise for a living! Her inspiring story takes the concept of a home-based business to a whole new level. She started her professional career as a 5th grade teacher, a path she loved but unfortunately had to put on hold when her mother fell ill years ago. At her mother’s bedside, she began to make bracelets and other jewelry items to pass the time. Demonstrating a natural talent for all things crafty, friends and acquaintances began to ask where they could buy her creations, which she began to sell out of her home.

Always a problem solver, Gaby decided to tap into the customer base that was at her fingertips: her seven sisters. Her sisters were looking to save money on common everyday items like drugstore cosmetics and began to purchase directly from Gaby on a regular basis. Whatever she didn’t manage to sell to her sisters and acquaintances, she would clear at a yard sale on the weekends. A few months after she settled into selling cosmetics successfully, her Account Manager at Via Trading recommend that she try a pallet of Christmas merchandise. “I was really nervous,” recalls Gaby. She took a risk, and it paid off. Her sisters purchased most of her first Christmas pallet and the rest was bought off by neighbors who had since learned of her growing business. “I’m really glad he pushed me into a pallet or I would never have branched out from cosmetics,” she says.

Over the last year, Gaby’s inventory has expanded to include seasonal items, home decor, dollar store items and of course, cosmetics. She has experienced great success and steady growth since she began her business, but it didn’t come easily. “There was a huge learning curve to go through when I started working with this merchandise,” she says. “I had to learn how to fix all the broken stuff. Luckily I have a close friend who helps me out but I’ve learned a tremendous amount from fixing things. I know about electrical wiring, plumbing and all kinds of things I never thought I’d learn!” Gaby offers all of her customers a satisfaction guarantee. While certain sellers in similar channels prefer to sell things as-is with no guarantees, Gaby likes to go the extra mile to outshine any competitors that pop up.

Tips & Hints For Working With Liquidation & Returns

Bundle UpIf you get stuck with excessive stock of a slow moving items, don’t just let it sit. Use it as a promotional product! Free giveaways can work very well as customer buying incentives. For example: get a free lipstick for every $10 you spend! Or, buy 2 items worth $5 each or more and get 1 free T-shirt! Specially good for discount stores.

Offer Warranty Make arrangements with third parties to offer warranties on electronic items. Selling warranties is also a great way to make extra money. They cost you very little if you buy them in bulk, and you can sell them for a profit.

Keep Level-Headed Be realistic in your expectations. Many people who start out in this business expect to always at least double or triple their money on every lot they purchase. This is simply unrealistic. While it CAN happen, it is also a fact that not every purchase will even be profitable. In the long-run, this can be a very profitable business but set realistic expectations for yourself and plan accordingly. Start small, test the waters and build your way up.

Stay FreshCustomers need reasons to return. Make sure you are refreshing your shelves on a consistent basis with new & different merchandise. If space and cash flow permits, hoarding certain goods and not displaying them in store right away is a good way to ensure you have “new arrivals” in your store on a regular basis.

Build Your Team Make barter deals with local repair shops to fix defective items like vacuums, TVs, microwaves, etc. You can either pay them a small fee for every item, or give them some merchandise in exchange for services (a free TV for every 5-10 items they repair).

Try New ChannelsThere are many ways to “liquidate” older goods from your store so that your store(s) always gives the impression of having fresh and newly received goods. Purchasing Liquidation goods often doesn’t allow one to be very selective on the individual products they may receive. Having multiple sales channels to offload certain goods prevents build up of slow moving items and increases the sell through of goods.

Even if those channels may not recover as much it is vitally important not to allow excess goods to build up as they take up precious space and cash flow. Sell certain items on eBay, use local auction houses to offload goods you can’t sell in your channels, partner with a flea market vendor to sell your “B” & “C” grade items.

Inventory StorageTake into consideration the space you have before you purchase. Make sure you have enough shelf, floor or storage space to house the merchandise you buy.

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BeCreative

Shake Things UpUse slow-moving inventory as freebies or giveaways. If you are stuck with, for example, a few hundred pieces of a t-shirt with a particular design on it that is just not selling well, consider giving away a free t-shirt for every $X amount your customers spend with you. This works no matter what your resale channel is. Retail buyers love freebies so use them to your advantage!

BOGO Rules!Give your customers purchasing incentives in the form of promotions. Excite them with schemes like “Buy 2 and get the 3rd one 1/2 off” or “Buy 2 and get 1 Free!” This is not only a great way to increase your average sale but also a great way to move unwanted or slow-moving inventory and make room for new things.

Price CorrectlySell items for what they are worth and not what you paid for them. Very often depending on the category, brand and popularity of an item it can recover a much higher relative % of its retail value then others. For example a full functional working PS4 can recover up to 75%+ of its Retail Value, while an unknown private label pair of shoes may not even recover 15%.

Be FlexibleNot everything will work in every market. Take the time to understand your customer base and cater to their needs. You may be selling a particular type of item that does very well. Keep sourcing that item but consider bringing in complementary items to boost your sales. For example, if you sell a lot of shoes, consider purchasing other accessories like handbags or belts, that customers will pick up at the same time. Conversely, if you are selling items that are not moving as quickly as they should, liquidate them.

Offer Impulse Items If you have a physical store or flea market stand (this is easier to do with a physical location than online), stock up on impulse items. Impulse items are goods that are usually found near the checkout counter, that customers pick up without thinking while they are waiting in line. Small items make the best impulse buys– consider cosmetics, DVDs, personal care accessories, hair accessories, electronic accessories or other such items. You can either hang them on a slat wall or dump them in a bin near your checkout counter or section of your store/swap meet stand and let those items raise your average invoice amount!

Plan AheadIf possible, hoard Seasonal Items to sell them closer to the Season at maximum recovery. Consumers will pay more for a Christmas Tree in November or December than in January.

Don’t Limit YourselfRetail doesn’t have to be just in a store, or just at a flea market, or just online. When purchasing liquidated merchandise, you will often find yourself with a wide variety of items within any given lot. Some of the items may be high value or branded, while others may be of lower value or potentially damaged.

Maximize your sales by tailoring HOW you resell items according to WHAT you are reselling. If you have a flea market stand, consider selling lower value items there and saving the higher ticket items for online sales. You can start a small e-commerce website or sell those higher value items on eBay or Craigslist. In general, you will be able to get more out of those higher items if you sell them online rather than at a flea market.

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BeCreative

Typical Workflow WhenWorking Liquidation & Returns

Do Your ResearchSee what sells well in your area. Identify opportunities to bring in products that are needed.

Got Any Skills?Are you good at fixing things or making things? Perhaps writing (listing merchandise) is more your strength. Put that to use.

Create a Business PlanStart with something basic, adjust as needed. Be aware of the possible costs and requirements associated with this type of business.

Track All ExpensesThe fastest way to fail is by NOT paying attention to how you are investing or wasting your hard earned money.

PRACTICE MAKES

PERFECTLearn from everything you do.

A fail is not a fail if you learn from it.Overtime this creates success.

Pro Tips

Ship or self pick-up?Consider the shipping cost vs the cost of the goods. Adding more goods to the order might make more financial sense by offsetting the shipping cost.

Sort MerchandiseYou need to separate what will be sold where. Check if items need to be repaired, unboxed,

repackaged or ultimately discarded or donated.

Research & PriceKnow what things are worth even if you don’t know what

they are. Keep an eye out for tricks to get even more for the

same item.

Inventory StorageThis could be your house, business or storage facility.

There is a market for everything. Don’t discard items

based on your taste.

What was most profitableBefore purchasing new

merchandise go over your sales notes to see if you can

improve your strategy to reinvest your earnings.

Be On Multiple ChannelsSome items sell better

depending where you sell them. Keep notes of what customers say about your

business or products.

RegroupIf some items are not selling

as fast or not moving at all try pushing it on other channels.

Keep things fresh, bundle up to create a value add feel.

2002 20052004 2008 2012 2013 2016

Via Trading is a family owned business specializing in the wholesale of liquidation merchandise. Founded in 2002 by its current co-owners Via Trading has established itself as a Leading Liquidation Company for Fortune 100 Retailers.

Recognized for 7 consecutive years as one of the nations fastest growing companies (INC500) today Via Trading has direct and exclusive contracts with some of the largest retailers in the world.

With a leading Liquidation e-commerce platform, a Team of Account Managers specialized in Liquidation Sales to consult, service and guide customers & a Customer Centric approach, Via Trading led the way to revolutionize the way Liquidation Merchandise is marketed & sold.

Who is ?

550,000 ft2square feet Liquidation site & facility in Los Angeles

Visitour facility and view our inventory

New Arrivalsevery day all day frommultiple department stores

Logisticsdepartment in house to assistin all shipping management

No Minimumorder size or membership fees

100 years+combined experience in theliquidation industry

Never Retailwe only sell wholesale

Every Budgetis welcome, we have merchandise by the case, pallet or truckloads

129+countries we haveshipped to so far

6,000 ft2 65,000 ft2 LiveAuctionLaunched

LiquidateNowLaunched

Added covered outside racks (1000+ pallets)

NewWebsiteLaunched24,000 ft2 550,000 ft2

Customers First!We’ve partnered with over 30 stores and manufacturers to match

you with goods that meet your specific needs. An extensive selection of opportunistic deals not available through any other

liquidator. Fastest shipping turnaround in the industry (over 95% of orders ship within 24 hours). We physically own the

merchandise and can vouch for its quality andcondition. You will be assigned your very own

multilingual account manager (English, Spanish, Hebrew, French, Turkish,

Greek, Arabic, Korean). He/she will learn about your business

and advise according to your specific

needs.

Create your FREE Account Online, phone, email or in person, it will give you access to the advanced online buyer tools

Select Your Merchandise Your Account Manager can make product suggestions based on your personal preferences

Start SellingYou can review helpful information about starting out in Liquidation & get selling tips on our website

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GETSTARTEDAccess Deeply Discounted Wholesale Liquidation Lots

What Do CustomersSay?

2nd GenerationI started coming to Via with my parents when I was a little kid. Eventually I learned that selling these products is how they paid the rent and other bills. Fast forward a few years I have my own business, truck to pick up my merchandise and it is how I support my family...

I Started With $300I was completely broke but I borrowed money and came here to see what I could find. Years later this is my full time business. If I can do it anyone can!

College StudentIf it wasn’t for Via Trading I wouldn’t be in college. The merchandise I sell part time allows me to pay for my rent, classes, books with a little extra left over...

US: 1 877 202 3616 • INT’L: 1 323 214 [email protected] Industry Way Lynwood CA 90262

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of our sales are generated from repeat

business!

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