Trading Wholesale Stock - Options for better profitability

The current economic landscape offers great opportunities for sole traders of wholesale stock and trading companies to consolidate their profits by looking after specific categories of stock, such as obsolete and surplus stock, ex-catalogue stocks, customer returns and refurbished products. If you are in the business of trading wholesale stock, here are a few of these options explained.

Surplus Stock
Surplus stock normally refers to unsold brand new products, with no signs of usage or damage, that are still in their original package. It originates mainly from manufacturer overstock or obsolete stock (end-of-line or unsold products that can’t be sold by the manufacturer or the retailer anymore because of age of model).

Stock types that are similar to surplus stock:
- Factory first choice and second choice stock : products that have been rejected at factory quality inspection for cosmetic reasons. These products are perfectly functional, but cannot be sold as new because of manufacturer standards.

- Ex-catalogue stock and cancelled orders: products that are brand new items that have been exposed in stores and showrooms and haven’t been sold or have been returned without being opened by end-users.

Surplus stock is usually available at specific wholesalers and stock liquidators in your market.

You can find their offers of surplus stock on trading shows and trading magazines, but also on big marketplaces and all over the Internet, such as Liquidation.com and Stockshifters.com

You can always try to reach brand manufacturers or retailers directly but these companies usually work with preferred partners for clearing their entire excess inventory stock in bulk. This is the case for Britcomdirect.com, a company that deals directly with manufacturers and retailers and sells online branded surplus stock to traders and other wholesale buyers.

Refurbished Stock
Refurbished products are customer returns that have gone through a grading process (full functional testing and cosmetic upgrade). The degree of their repairs and aesthetic look result in different grades of refurbished products, which are priced and sold accordingly. This is why having full information on the grading system and condition of the refurbished stock is usually desired when doing trading deals with this type of goods.

Refurbished appliances such as electronic devices and home and garden products are fully functional products that can be traded at considerably big discounts and represent a convenient way of leveraging income for retail businesses.

Customer returns offers can be found on many occasions in the trading business, but there are actually very few companies that offer professionally refurbished products in massive quantities. Anovo and Britcomdirect.com are two examples of European companies that own their own refurbishing facilities. The latter offers real opportunities, through it’s B2B Trading Platform, for traders who would like to buy refurbished appliances and consumer electronics by the truckload.

Reasons to consider surplus stock and customer returned refurbished goods when trading:

1. Retailers and manufacturers of consumer goods are constantly looking for efficient channels of clearing their overstocks, obsolete products and customer returned goods. This is especially the case in the most dynamic industries, such as consumer electronics, household appliances and fashion. Brand manufacturers and big retailers in these industries usually demonstrate a real urgency in clearing their old lines of products or surplus stocks in order to deal with cost management pressures and market trends.

2. The potential margins made on trading surplus stock and refurbished appliances such as gadgets and Hi-Fi products are considerably higher, because of the discounted nature of these goods but also because of the expansion of these type of niche businesses in the retail sector - from discount shops and factory outlets to online shops and small resellers on Ebay.

Finding the best suppliers of clearance stock

Planning to open your own retail business? Start by finding the best suppliers of clearance stock for the products you would like to sell. In the business to business market you will find suppliers specializing in niche products such as wholesale appliances, consumer electronics, DIY, fashion etc. or in special clearance stock categories such as raw returns, refurbished, first and second choice product lines from manufacturers and retailers.

You can search and connect with these suppliers at industry trade shows, by subscribing to trade magazines in your local market or by actively looking for company contact details on the web.

Online research of clearance stock suppliers

You will be able to find very helpful online resources of clearance stock suppliers on your local market, by searching through local business directories and online wholesale magazines like The Trader directory in the UK.

When targeting suppliers of clearance stock from other countries, international B2B marketplaces such as Tradekey.com are a good way to start, as they are real trading hubs where suppliers provide verified company information and where multiple options exist for checking the clearance stock you are interested in purchasing: full contact details, virtual showrooms, virtual showcases and virtual trade shows.

If you choose to work with dedicated global suppliers, the Internet offers many opportunities for uncovering and connecting with suppliers and big distribution companies. Britcom for instance is a recognized supplier of wholesale appliances and other stock categories, specializing in specific stock clearance solutions, such as raw returns and refurbished consumer goods. Acting as a supplier of pre-owned refurbished wholesale appliances but also offering clearance stock from big manufacturers and retailers throughout Europe, this company is a first hand supplier of wholesale deals that will give your retail business an important push start.

Find these types of suppliers of clearance stock directly on the web - most of them have a visible online presence with their own company websites and even online “shops” - or on niche social networks, forums and online marketplaces.

Verify your clearance stock suppliers

Make sure you are making secure wholesale purchases by verifying these suppliers’ credentials, the actual condition of the stock and availability before starting to order. Look for details such as company address and VAT number, size of the company, online presence, pictures of the goods, stock condition and product technical details. Get to know the supplier before engaging in a transaction and also try to build a long term relationship with the suppliers of clearance stock you can trust - this will secure you the best quality products and even better exclusive deals in the future.

Making money with raw returns wholesale lots

If you’re in the business of buying and selling wholesale clearance and surplus stock, one of the greatest sources of revenue for your business is going after raw returns lot offers. Most of the high-end retailers and manufacturers all over the world offer raw returned stock for sale to B2B traders and wholesalers as part of their stock clearance programme.

The easiest way to find these raw returned stock offers is by doing a quick search on the web. On websites like Ebay.com and Liquidation.com you can find many stock offers from resellers that trade branded raw customer returns at prices that go at up to 90% off RRP.

Despite the massive saving opportunities, raw returns must be looked at with caution. When purchasing this type of clearance stock, it is crucial to see the goods first or have comprehensive information on the condition the returns are in. This is because raw returns job lots usually come in a mixture of working, damaged and faulty items, with no warranty that they are fully functional products for you to re-sell to end-users. Which in the end will result in additional repair costs for your company.

Most of the untested raw returns bulk deals you find on the web present this risk. Getting in contact with the seller and directly dealing with his company or obtaining information regarding individual SKU condition and packaging are 2 ways of lowering that risk.

Another possible solution for safely purchasing raw returns is through trading platforms like Britcomdirect.com where suppliers and their stock are verified before being listed online. Unlike other auctions sites, this B2B trading platform operates as an agent in getting you the best deals of raw returns and surplus stock from retailers and manufacturers directly.

Moreover, here you can find raw returned stock that has been upgraded through a professional refurbishing process, owned by the company and sold directly online. Other important lot offers represent brand new and end-of-line surplus stock of household appliances, DIY tools and consumer electronics in great condition from top International Brands. The savings you get against RRP on these types of stock are still substantial and can give your business a competitive advantage on the local and international market.