GOODS CONDITIONS:

In the liquidation business, a wide variety of companies or programs use different definitions of products and merchandise to describe the condition or condition of the items being sold. Terms such as liquidation, shelving, returns, and excess inventory are commonly used in the liquidation industry. We use the term liquidation merchandise to describe any type of product or merchandise that is being liquidated. To describe the status of the different products that we sell in Ameritrading Liquidations, we use the following terms that group and describe the general conditions of the merchandise that we sell.

  • New and in its original box.
  • Surplus inventories.
  • Surplus shelves.
  • Customer returns.
  • Irregular
  • Checked and working.
  • Remanufactured.
  • Defective
  • Previously used.

NEW AND IN ITS ORIGINAL BOX

These products are commonly known as “Master Box”, they are generally 100% new items and are in their original manufacturer’s packaging or box. These products are complete and work, in turn, they have not been displayed for sale and can be considered as 100% new and ready to sell items.

These products can have the following characteristics:

  • They are 100% brand new.
  • They are in their original manufacturer’s packaging or box.
  • They include all parts, components, accessories, manuals, etc.
  • There are no visual signs of wear, wear, or excessive handling.
  • They are ready for sale.

SURPLUS INVENTORIES

Surplus inventory or also called excess inventory, are products that were never displayed for sale in a retail environment or store, although they may no longer be in their original box or packaging.

Surplus inventories are also called Liquidations and can come from retail stores, importers, manufacturers or distributors that have closed their business, have discontinued certain items, or have excess stocks in their warehouse.

Amertitrading Liquidations, also offers settlement services to freight and transportation agents, logistics industries, manufacturers, insurance entities and financial institutions and for purposes. Surplus inventory is usually in 100% new condition.

These products from surplus inventories usually have the following characteristics:

  • Items are usually 100% new and ready for sale.
  • They do not have additional price, discount, or warehouse labels attached to the items.
  • The articles are usually always in their original packaging or box, but it is possible that sometimes they may come loose.
  • The original packaging or box of the product tends to be in good condition and without excessive signs of handling.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

SHELF SURFACES

Surplus shelves or store samples are products that were displayed or displayed for sale in a retail store and that in turn were removed or removed from their shelves for liquidation. These goods have generally never been used and are generally new and in good condition.

Usually products from surplus shelves are items that have been displayed for sale either in a store or in an ecommerce, but that have never been sold to any customer. These products are primarily considered overstocked on store shelves.

These types of products usually require much less work than those from customer returns in terms of testing and repair, but they usually require some type of work such as cleaning up potentially dusty items and removing any old price tags. attached to the article, the latter as long as it deems it appropriate before reselling the products.

These products are generally in good condition for sale and may have some or all of the characteristics described below:

  • Seasonal and end-of-season products.
  • Items were discontinued or discontinued.
  • Products can still have their original price tags, as well as discount price tags.
  • The packaging or box of the item may show signs of tampering.
  • The outer packaging is in imperfect condition.
  • The labels may have been removed or removed, to prevent the return of the product to the original store.
  • Some items may still have a safety sensor or device attached.
  • A percentage of these products may be out of the box or in open boxes.
  • A percentage of these items may be sample units from stores.
  • In some batches there may be products with an expired date or that may be close to expiring.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

CUSTOMER RETURNS

Customer returns are products that once they have been sold either in a physical store or on a web page, they were returned by the consumer under different conditions and for various reasons.

Stores have different return or return policies for their merchandise, as well as product clearance policies that may affect the type and conditions of the items that may be in different batches or loads. Although the product return policy varies from store to store, the vast majority of returns made by customers simply undergo a quick or cursory visual verification at the store level before being assigned a return charge. Higher value items may be subject to a more detailed and thorough review before being selected for sale.

The overall “quality” of customer return loads can vary significantly from program to program, and it is common for some programs to have a different defective product rate than others. Most of them tend to be between 10% and 20%, which is called “Clean charges from customer returns.” We can also find return charges with high defect rates greater than or equal to 50%, which are called “Customer returns recovery or salvage charges.”

Customer returns typically have the following characteristics, and stores may decide to liquidate these products for a number of reasons:

  • The product is defective when returned by the customer.
  • Cosmetic defects or slight blemish.
  • The product is out of or without its original box.
  • Minor components such as (cables, manuals …) or major components such as (remote controls, covers …) are missing
  • Display or sample items in the store.
  • Defective or damaged outer packaging.
  • Items that the store does not want or cannot reuse.
  • One or more components are not working.
  • The store is stocked with such items.
  • Products that are out of season.
  • Items without continuity or discontinued.
  • Damaged barcodes and / or label.
  • Signs that the product itself has been tampered with or its external packaging.

Often times, return labels or return tracking labels from the store can be found on items. All products that are returned by the customer are always sold without warranty. Any collateral found with the goods is invalid and cannot be legally used.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

Many stores do not have programs to settle customer returns by separating or sorting excess new merchandise from off-the-shelf merchandise or excess stock; This mixed-condition product situation is commonly found as “customer return charges.” Ameritrading Liquidations will always define “Customer Returns,” even if it includes a significant percentage of overstock or off-the-shelf products.

Depending on the product category and according to the liquidation policies of each store, the percentages of the items that are in good condition in the return charges, can vary significantly.

In addition, the definitions of the percentage of products that work may also vary depending on the category of products in question. Often when one refers to the “working percentage” of the products, he is referring to the “salable percentage” of the cargo. (For example: If we are talking about an 8-piece kitchen cutlery set and one is missing or one piece is damaged, although one can assess that the item is not working or defective, it still has a resale value so it is still you can get back a percentage of the original value of the product). Generally speaking, the recognized industry average when it comes to estimating percentages of “things that works” is estimated to be approximately 65-75% for products that work, 20% for products that need to be repaired, and the remainder is for scrapping, selling for parts, offering to the junk market, and so on.

In practice, no individual load or pallet will have an exact breakdown, but these percentages are representative when describing the expected average condition of products with regular purchases. Ultimately this is an approximation and the percentage of products actually working on any pallet or load may be higher or lower.

Buying customer returns and reselling them for profit is a tried and true concept. However, before starting a business that involves liquidation products, you should consider the following:

  • In general, liquidators such as Ameritrading Liquidations operate a no-return policy with all final sales and all are sold as is (AS-IS) regardless of condition or status, unless otherwise noted.
  • Buying customer returns is not for everyone, you have to understand the business.
  • There is a risk that your purchases will not be profitable, and this risk increases when buying customer returns.
  • There is a learning curve that newcomers to this industry experience and that will obviously improve once they have more experience working with these types of goods.
  • In many cases, the items are not ready to be retailed so dealing with clearance products requires a lot more work in terms of processing, research, creativity, proper pricing, etc., than when selling clearance items. wholesale in new condition.

Shopping for merchandise returns from stores is not for everyone. This is not a “get rich quick” scheme. The benefits are high for those people who are prepared and willing to work hard and put a lot of effort into their purchases to generate the highest possible return on investment. This is a step-by-step “get rich” scheme with dedication, creativity, and hard work.

To maximize your success with these types of merchandise, you must be prepared to process, test, verify, and research the prices of different products before offering them for sale. In the long term and when you have made several purchases, most of the people in this industry agree that the benefits and returns are very profitable and that the long term risk is generally minimal.

Clearance merchandise and customer returns are typically priced that allows you to make generous profits while still offering your customers great deals on the products.

  • If you’re not ready to test items, don’t buy customer returns.
  • If you are not prepared to repair items, please do not buy customer returns.
  • If you only want to work with items that are 100% ready for sale, don’t buy customer returns.
  • If you are not prepared to expect a percentage of items to be out of the box, having minor defects, cosmetic blemishes, etc., do not buy customer returns.

Please do not misinterpret our words: after all, we do not want to discourage you if not on the contrary, to be transparent and serve you in everything you require for the development of your business. This is a profitable business for the vast majority, and the overall industry has a volume of approximately $ 100 billion.

This could be a very profitable business for you, if you are prepared to put in a good amount of work and effort. If, on the other hand, you want to acquire products that are in better condition such as new products, excess inventories, products removed from shelves that require little or no work for their marketing and sale, do not hesitate to consult your sales consultant, who will gladly It will indicate all the products that we have available under those characteristics and conditions.

IRREGULAR

Irregular products also known as (Scratch and Dent) are new items that are sold off as a result of faulty or improper manufacturing. They are also called “imperfect products.” Generally, these types of goods have very small manufacturing defects such as slight discoloration, minor stains, incorrect thread color, improper stitching or other minor imperfections.

These items can have the following characteristics:

  • They may appear in new condition, with no signs of previous use.
  • They may show signs of manufacturing defects (improper stitching, etc.)
  • They may be out of the original factory packaging.
  • They may have dents and scratches.
  • It may show small stains that occurred during manufacturing.
  • These products are usually ready to be sold.

REVISED AND RUNNING

Sometimes Ameritrading Liquidations may offer products that have already gone through a testing process and are considered functional or “revised-working”. These items can be a mix of inventory surplus, shelf surplus, and customer returns.

These products can have the following characteristics:

  • They may be in their original box, but sometimes they may be in generic boxes.
  • They may or may not contain all the necessary elements such as: (manuals, cables, remote controls, etc.)
  • Most or all of the items work and function, so the products can be considered as functional and ready-to-sell items.
  • These products may show signs of tampering and use.
  • They can have price tags, as well as internal identification tags.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

REMANUFACTURED

At Ameritrading Liquidations, we also offer “Remanufactured” or “Refurbished” products. These items have gone through certain processes and test stations after being restored and returned to their original working condition. These products are often packaged in generic boxes or packaging and may not include all of the items found in the original manufacturer’s packaging, although some of these products do use the original manufacturer’s packaging or box.

These products can have the following characteristics:

  • Each of them must be in good working order.
  • All parts, as well as the necessary components, are usually included.
  • These products may or may not come with a manufacturer’s warranty (see the specific listing for more details).
  • They can be repackaged in generic boxes.
  • Items may show signs of slight wear or cosmetic defects.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

DEFECTIVE

Occasionally Ameritrading Liquidations offers pallets, batches, or loads of non-working or “defective” products. These items are usually high-end electronic products that have gone through a testing process, visually defective items, incomplete sets such as: furniture, home products, etc., items valid only for replacement or outdated parts. These types of defective merchandise have the potential to be profitable for resale, as long as you have the ability to repair them or replace non-working parts.

These products can have the following characteristics:

  • These types of products are items that have undergone a testing process and have been found to be defective.
  • Items may be visually defective or incomplete.
  • Incomplete assemblies or parts.
  • Items may be new, but with a significant quality control flaw and are therefore listed as faulty.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

PREVIOUSLY USED

Ameritrading Liquidations seldom offers clothing that has been previously worn. These products come from different places and are available regularly. Our pre-used products go through an inspection process to ensure quality control and to offer excellent value for money.

These products can have the following characteristics:

  • Articles of clothing or clothes that have been previously worn.
  • The lots can be made up of different brands, sizes, seasons, models or discontinuous styles.
  • Items may show signs of wear and tear.
  • In general, you will not find any type of labels, be it brands, prices or stores.
  • It can be sold by unit, box, pallet, lot or by weight.

The programs vary from one store to another, if you have any questions or concerns about certain products, please do not hesitate to consult with your sales consultant.

CONSISTENCY OR AVAILABILITY OF PRODUCTS

When buying clearance products and depending on the customer’s need, it is important to consider the consistency or regularity of the products you are buying. This information may or may not be required for your business or company. Each client is unique and has specific needs, pricing policies, etc.

Regarding the availability or regularity of certain types of merchandise or products that you as a customer buy, it usually affects the way you choose to process and sell the products, as well as when setting the sale price of your merchandise. .

The products that are marketed in the liquidation industry can generally be divided based on their availability, into three categories:

CONSISTENT OR CONSTANT PRODUCTS: Available on a regular basis either immediately or within a few days.

INCONSISTENT OR NON-CONSTANT PRODUCTS: Available periodically and with relatively long lead times between availability.

OPPORTUNITY PRODUCTS: Usually these are one-time offers that will not be available for sale again, or could be in stock again, after a long period of time.

Consistent or constant products (Regular availability):

These types of products are important to consider due to the following:

  • When the supply is constant on those products that are similar, this can help you build, strengthen and grow a business.
  • Knowing that you can get more of the same type of merchandise as soon as supplies last or even sooner, this will allow you to have a constant flow of products for your customers and increase their loyalty.
  • Marketing or selling products that you can buy again and again will allow you to be more flexible and competitive with prices, since you can buy them again easily.
  • Marketing with the same types of products will allow you to become familiar with any program over time and in turn, you will be able to take advantage of your knowledge even more and therefore maximize your benefits.

If items can be bought over and over again, your goal would be to price those items to maximize your absolute profits.

Example: Suppose you buy product “X” for $ 10. You must take into consideration that you will be better than you instead of selling 50 units at a price of $ 25 each and thus obtain a gross profit of $ 750, you can assign a price of $ 20 to the same product and thus be able to sell 100 units to obtain a gross profit of $ 1000.

Inconsistent or non-constant products (sporadic availability):

Various loads and trucks available in the clearance industry are only available inconsistently and have a relatively low and sporadic supply such as: (designer bags).

These types of products are important to consider due to the following:

  • These products are unlikely to be easy to find to buy again, so they can have a long wait between availabilities.
  • It is difficult to keep customers a regular supply of these items.
  • Developing and growing your business, as well as building trust with your customers, is more difficult when it comes to products that are inconsistent in terms of supply.
  • With these types of products, you must maximize the potential profit from goods that are not available on a regular basis, since once they have been sold, you will not be able to buy them in the short term, and therefore you should price accordingly. .

Example: For items that are not readily available for repurchase, it is better to take two weeks to sell for $ 30 per unit than to sell all of them in one week for $ 25 per unit.

Opportunity Products:

You will often find unique offers at Ameritrading Liquidations that once sold will no longer be available again. This type of opportunity usually occurs with products that have been discontinued, products from insurance companies, items from the closure of stores or warehouses, etc. Typically, once these products are sold, similar offers will likely not be available again, so these opportunities are often very profitable.

Buyers of these types of products should always try to maximize their selling price and the profit from those purchases, since the stock is limited and generally there will be little competition and little supply of similar items.

What are seasonal or seasonal products?

Typically, surplus inventories are new goods that have never been purchased by a customer, but are considered excess inventory in stores for a variety of reasons.

This type of seasonal or seasonal excess inventory products can represent an excellent opportunity for online sellers, online stores, ecommerce and retailers in general that have storage space available for when the indicated season of sale of these items arrives. Seasonal inventory surpluses refer to merchandise that is normally sold during a specific season or season of the year. Outdoor furniture, air conditioners, heaters, winter clothing, summer clothing, Christmas decorations, Halloween items, Valentine’s Day items, etc., are examples of seasonal overstock.

At Ameritrading Liquidations, we offer seasonal surplus inventory at prices significantly below wholesale prices. You can buy these products in bulk, by boxes, pallets, batches, or trucks. With this type of merchandise, we have found that seasonal excess inventory can offer a unique opportunity that no other type of excess inventory merchandise. In this sense, it can be a very good short-term investment to buy these types of products out of season when they are considerably cheaper.

You have to take into account, that with a small storage space and some initial capital, you can buy a load or truck of seasonal excess inventory products (Example: Christmas items) and keep them for a season, then you can resell it when come back in the high season to maximize your profits.

In this sense, when putting your money in a tangible real asset such as seasonal inventory surpluses, they are always a good short-term investment, since it will increase in value when the season arrives.