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5 Rules for Small Business to Choose the Right Liquidation Partner

An important source of merchandise for small retailers is wholesale liquidators. Here are some important things to consider while choosing a wholesale liquidator.

RULE 1:Look for wholesale auction companies who have been in business for a long time and have a track record for good deals and ethical business practices. Retailers must also ensure that the company stands for honesty and integrity and takes responsibility for timely deliveries.

RULE 2:Choose companies that hold direct liquidation contracts with retail outlets and manufacturers. This is because direct liquidators own warehouses where merchandise is stored during transit and delivered with the assured quality.

RULE 3:Choose liquidation partners who hold multiple direct liquidation contracts. By doing so, retailers can gain access to multiple commodities from a single source.

RULE 4:Before plunging full-fledged into liquidation partnerships, ensure to understand the restrictions that may be placed on remarketing of the liquidation merchandise. Failure to understand and follow brand-reselling restrictions may result in government fines or legal action.

RULE 5:Ensure to purchase from liquidators who are capable of storing products in multiple warehouses throughout the country. This would enable retailers to cut freight costs since products can be sourced from nearby locations.

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