What is a liquidation business?
A liquidation business or firm is a company which deals in liquidation assets or products. They buy lots of goods from giant merchants at a low price and then either retail them or wholesale them to retailers. The reason they are able to get low price on these goods is that the goods are overstock, self pulls or returned items which companies like Amazon or eBay cannot keep as they take space or are likely not to sell which is why they give these off at a lower price. Top liquidation business forms like Quicklotz or Bulq buy these products and then wholesale them at a discounted price via auction or direct sale.
What is e-commerce?
To understand how liquidation businesses are boosting the growth of e-commerce you have to understand what e-commerce incorporates. To go by the literal definition of the term e-commerce means electronic monetary transactions. In a broader sense it means doing business online. So, every time you shop on Amazon or eBay and pay money online it falls under e-commerce. Every time you do a bank transaction it is e-commerce. Also, every time you buy any service online like booking plane or railway tickets or booking movie tickets you are contributing to e-commerce. So, you get the deal, right?
Liquidation Business Firms Boosting E-commerce
So, how does liquidation businesses boost the growth of e-commerce? Look, it isn’t that only liquidation businesses are boosting e-commerce growth as it itself feeds off of online marketplaces. Earlier, it would not have been possible to get millions of returns by customers or too much overstocking of products or shelf pulls as the demand wasn’t as high. But as the e-market places grew in popularity and size lots of customers popped up due to the ease and accessibility of products. So, demands increased and more variety of products were stocked. Sometimes they sold and sometimes they didn’t. Then there were returns too and thus big companies needed to get rid of these stocks faster to procure space for other items. This gave a great boost to liquidation businesses as they were able to buy variety of stocks at a much lower price.
So, how does the businesses are positively affecting e-commerce. We have learnt that internet is a great place to sell items and do business. You can reach more customers that way and things are much more accessible and easy. To get more business and be able to sell more products to customers many of the liquidation businesses have started selling their stock online by conducting regular auctions or directly wholesaling to retailers for a price. Many liquidation businesses who buy from these wholesalers retail their products on the internet as well.
So, now lots of businesses are flocking to the online market to improve their sale. This has given a good boost to the growth of e-commerce as more monetary transactions are taking place online. The growth of e-commerce is very much important so that things become more accessible.
Reasons Why Liquidation Companies Supporting E-commerce
Following are some of the reasons why e-commerce is growing because of these liquidation companies.
It is much easier to provide users with an experience which is very close to their needs on the online market place than offline. You cannot possibly cater to every customer in a unique way in a brick and mortar store and since customer satisfaction means profit and more customers many of the liquidation businesses have a online front as they can track various purchase histories of the customer and provide them a tailored experience.
Marketing on Social Media
Look, whether you like it or not social media platforms are the place where most people spend time online. So, to make your products or business noticeable liquidation businesses are marketing themselves on social media and thus boosting e-commerce growth. Social media marketing has grown so much that there are specialized courses teaching you the nitty gritty details of the affair. Using social media as an advertisement tool can allow the customers who genuinely like the product to show their appreciation and share the as thus bringing in more customers.
Plethora of Options
Liquidation businesses like other various businesses have understood the potential of online marketplace when it comes to providing various options to customers. You can offer much more choices to customers than you can ever in the physical world. This is because you cannot have every option present in your physical retail store since you will run out of space. But in online marketplace you just have to have a warehouse place where you can keep your stock and have an online retail front where customers can buy goods based on color, size and other features.
Catering to User
This might seem like an extension of the first reason but it is different. By this I mean that the liquidation businesses can make it much more comfortable for customers and cater to their needs directly at their home via online portals and mobile apps rather than having them travel or go to their stores.