Tips for Merchandise Liquidators on Avoiding Risks when Buying Closeout Sales
A businessperson may close his/her business for any number of reasons. Merchandise liquidators can help him/her to liquidate assets. However, if you are a merchandise liquidator, you need to be careful about buying closeout goods. As the wholesale closeout industry is filled with frauds, this precaution is mandatory. I will discuss here some tips on how you can avoid risks while buying closeouts.
Some Tips on Avoiding Risks while Buying Closeout Sales
If you are unprepared, you may become an easy prey of the frauds. Therefore, you must be precautious. You should also remember that most buyers cannot overcome the loss that happens due to buying unverified stocks.
Following are some tips that you should remember when you are working with a new supplier for the first time. These will help you to verify if the supplier is legitimate.
Checking Business Registration
A legitimate business must have registration and they will not hesitate to show it to you, if you ask. However, not having business registration does not necessarily mean that they are frauds. What you need to check is how they respond to your request of seeing it. If they are not straightforward or become defensive, you better not deal with them.
Check Online Reviews
This could be helpful to be certain about the supplier’s credibility. You can check online forums for such reviews.
Checking their Warehouse
A supplier must need a warehouse to store the products. If there is no warehouse, there are no products. It might also indicate that the person talking to you does not have access to the warehouse. If the supplier fails to show you their warehouse, you should end the deal with them.
Get Help from Google Maps
Frauds may provide you false address to make their business look legitimate. Most people generally do not bother to check, and the frauds rely on that. All you need to do is type the address on a Google search. The result will show you a lot about your supplier’s business. You should also use the street view to ensure that the place really is a warehouse.
Ensure the Quality of the Product
You must be sure about the quality of the products before you decide to purchase them. You need to find out the origin of the products for that.
Visit the Supplier in Person
You should do it if it is possible. This way, you will get a chance to understand the supplier’s intention. Moreover, you will be able see the products and determine yourself if they are good enough to buy.
Ask for References
Ask the supplier for letters of references from people they have worked with. If they hesitate or provide you fake references, you can be sure of their intention.
To avoid risks, merchandise liquidators should use several of these tips. This will help them to be tension-free.