Liquidating inventory is typically facilitated by liquidation buyers and/or brokers. This blog explains both roles plus a new liquidation solution for companies that want to 'do some good' with their excess inventory and create charitable cash donations.
What is Inventory Liquidation?
Inventory liquidation is the clear-out and/or sale of goods to create warehouse space and/or cash due to these typical situations:
Excess Inventory: companies have too much inventory sitting in their warehouse (e.g. low sales, over-purchase to avoid supply chain issues) and need to make space for new goods as a result of changing seasons, styles, trends, and technologies, or to make room for the latest and greatest products.
Business Shut Down: companies are closing down their business as a result of retirement, slow demand, increasing expenses, low profitability, etc. and need to clear out their inventory.
Bankruptcy: companies are going through bankruptcy and are required to sell goods to repay creditors and move out of their retail space and/or warehouse.
No matter the reason, when companies (e.g. manufacturers, retailers, wholesalers, distributors, etc.) experience a growing inventory problem, clearance sales, and special promotions are the typical 'go-to' solution. But, when blowout promotions don't solve the excess problem, inventory may be donated to charity (which can create challenges for the charity), liquidated, taken to the landfill, or destroyed/incinerated.
Types of Liquidators
In the closeout and liquidation business, there are typically two roles that facilitate the liquidation transaction:
Liquidation buyers typically work for a closeout store or retailer purchasing goods for their own store and clients. Buyers may purchase products directly from a supplier (retailers, manufacturers, etc.) or from a broker.
Liquidation brokers typically never own the product. They have a network of people they contact (buyers or other brokers) to find someone to purchase the goods and will facilitate purchase, pick-up/delivery, and sale and take a commission from the sale as payment for their services to facilitate the transaction.
Did You Know? Some Liquidation Brokers may purchase products directly from a supplier, ship the inventory to their own warehouse and then find a buyer (and then they ship goods from their warehouse to the buyer) OR they find a buyer, then arrange product pick-up from the supplier and ship directly to the buyer which minimizes transportation, environmental impact, and logistics costs.
Traditional Liquidator vs. a Liquidator for Good
In the race to divert inventory from the landfill before its time, there ARE companies doing some good with excess inventory. One of which is The Charity Hub.
The Charity Hub is a Liquidator for Good – a new liquidation solution that behaves like a traditional broker but with a purposeful mandate to turn deadstock into cash donations for the product supplier's favorite charity.
Here we explain the differences between a Traditional Broker and a Liquidator for Good with questions to ask current or prospective brokers to find the right partner for your organization.
Traditional Liquidation Broker | Liquidator for Good The Charity Hub (TCH) |
Company History & Experience Varies by Broker – Be sure to ask!
| Company History & Experience TCH’s primary goal is to make our world a better place by creating charitable cash donations through the responsible liquidation of excess inventory. TCH has been in business since 2021; however, our CEO & Founder Dave Rolleston, and President Jon Sugar have been involved in the liquidation/closeout and eCommerce business for over 20 years. We have a team of liquidation specialists. Visit thecharityhub.com and our YouTube Channel. |
Competitive Advantage Varies by Broker – Be sure to ask!
| Competitive Advantage TCH competitive advantages include:
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Product Types Varies by Broker – Be sure to ask!
| Product Types TCH handles:
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Product Preferences Varies by Broker – Be sure to ask!
| Product Preferences TCH liquidates most consumer products found at Walmart, Target, Superstore, Costco, Best Buy, Home Depot, etc.
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Product Price Varies by Broker – Be sure to ask!
| Product Price
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Product Placement Varies by Broker – Be sure to ask!
| Product Placement TCH complies with supplier liquidation instructions as both our reputations are on the line!
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Product Representation Varies by Broker – Be sure to ask!
| Product Representation Integrity is a core value at TCH. We partner closely with our supplier partners and act as an extension of your sales team. We take the time to understand the marketplace our suppliers serve and present products professionally while ensuring customer confidentiality. |
Product Pickup Varies by Broker – Be sure to ask!
| Product Pickup
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Corporate Social Responsibility Varies by Broker – Be sure to ask!
| Corporate Social Responsibility TCH’s Triple Impact Liquidation Model diverts goods from the landfill and creates charitable donations for the suppliers-chosen charity. TCH's Impact Scorecard highlights the weight of goods diverted from the landfill and charitable donation amount for suppliers to include in their CSR and ESG reporting. |
Sustainability Practices Varies by Broker – Be sure to ask!
| Sustainability Practices TCH is a Liquidator for Good.
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Customer Returns Varies by Broker – Be sure to ask!
| Customer Returns TCH can receive, sort, repackage and responsibly liquidate customer-returned goods without negatively impacting the supplier's regular sales channels. |
Summary
Whether you choose to work with a traditional liquidation broker or a Liquidator for Good, it’s important to find the right partner. Discover the 14 Questions to Ask Your Liquidator and Wholesale Liquidation Broker to find the right partner to make sure you maintain brand integrity, don’t dilute your regular distribution channels, or have inventory end up in the landfill when it wasn’t your intention.
Ready to Turn Excess Inventory into Donations?
If you have excess inventory that you would like The Charity Hub to turn into charitable donations for YOUR company’s favorite cause or Foundation, contact us. We’ll have an introductory call to learn more about each other and determine if there is a mutual fit.
Additional Resources
About The Charity Hub
The Charity Hub (TCH) offers a unique triple-impact liquidation solution that helps companies support their corporate social responsibility and raise their Environmental, Social, and Governance (ESG) profile by buying excess, refurbished, and customer-returned inventory and turning it into charitable donations. As a Liquidator for Good, TCH makes it easy for global manufacturers, distributors, retailers, warehouses, and insurers to responsibly liquidate inventory by coordinating all logistics and sales, and then donating 50% of TCH’s net profits to the suppliers’ preferred charity. Our expertise is liquidating inventory, our power is giving back. To learn more about turning excess into impact, contact The Charity Hub.
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