5 reasons resellers stock new merchandise
January 20, 2017
Resellers stock new merchandise for 5 important reasons
You’re in the business of reselling used items. However, it makes good financial sense to offer new merchandise too. In fact, there are several reasons to invest in new merchandise for your resale shop. Typically, items are bought in bulk for literally pennies on the dollar, but there are a variety of other ways you can purchase affordable, unused merchandise. It can be a “buyer beware” proposition though. Many of the items being sold are “as is.” No matter how you purchase, make sure you review the entire contract, particularly their return policies because it’s a wise idea for resellers to stock new merchandise.
Reason #1 Give your shop a boutique feel
Adding smaller items to your merchandise, creates a bigger impression for shoppers. Customers want to see a wider array of goods. Improve your brand image by adding multiple pieces of the same product.
Reason #2 Increase inventory during slow periods
Having a steady supply of new merchandise guarantees you will always have fresh inventory on the sales floor. Add a line of chalk paint, jewelry, greeting cards or other items to your shop and you’ve automatically added built-in revenue.
Reason #3 Offer in-demand merchandise
Many of our furniture consignment customers have invested in lines of chalk paint, candles and furniture polishes. Our clothing consignment customers carry everything from scarves, sunglasses and lingerie. Children’s consignment shops often invest in a partnership with Melissa and Doug toys. Whatever is in demand in your location, find a reputable dealer and build your inventory.
Reason #4 Tap into non-resale shoppers
You move from being known strictly as a “secondhand” shop to that “boutique around the corner” when you add new merchandise. Shoppers, who would never set foot in a “used” merchandise store, wander in because of that particular line of new items. Plus, many shoppers don’t want to buy used items as gifts. Bridesmaids or baby shower attendees feel they need to purchase a brand new gift rather than a brand new used gift.
Reason #5 Provide opportunities for local artists and designers
Becoming a unique distribution point for a local artist or designer instantly adds to the exclusivity factor of your resale shop. Make sure the tie-in follows your branding though. In other words, don’t offer homemade jellies if you’re a clothing consignment shop. A furniture shop is perfect for that local pottery maker or painter and that young new designer from college can exhibit her new textiles at your clothing store.
Where to find new merchandise
Resellers stock new merchandise through overstocks, closeouts, liquidations, salvage and wholesale items. These companies advertise online and many of them have distribution centers all over the country. Some companies are very specific about the items they sell and others sell by random pallet only. Again, buyer beware.
These discounted items, known as surplus, are offered by a retailer that overestimated market demand. It doesn’t mean your customers won’t be interested in them. It means the market is flooded. Overstock outlets are a great place to find clearance-priced seasonal items.
A clearance or closeout sale consists of items a retailer no longer wants to stock. These items are almost never returnable. The point is to clear out inventory. The Clothing Broker offers excellent advice about buying department store closeouts.
A salvage load includes customer returns, samples and floor display merchandise. If you have the time and expertise to repair a ripped seam, sew on a button or touch up paint, this can be a cost-effective option.
Held when a store goes out of business or declares bankruptcy, liquidation sales are an excellent place for new merchandise. In addition to products for your shop, you may be able to find supplies like tagging guns, bags, tissue paper, shelves, receipt paper and more. If a local business is closing, negotiate a package deal instead of paying per item.
Do your homework. Thoroughly review your contract and completely understand all return policies. Buying new merchandise can bring a boost to your overall bottom line so now’s the time to boost sales by stocking new merchandise.
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