Are you looking for a wide variety of liquidated toys to buy at competitive prices for maximum profits? Then look no further than the selections available through Merchandize Liquidators. Since 2003, we have been providing our clients with an excellent variety of liquidated products with excellent service, whether you are looking for a tote or a truck full. We offer liquidated toy selections from a variety of major retailers in many different conditions and collections that are organized to suit your needs and expectations exactly.
Our liquidated toy lots are available by the pallet or truckload in a variety of conditions, meaning that you can make the purchases you need for your business at a budget that best suits your current capacity. Keep in mind that, given the variety of sources and conditions of the liquidated toys, there are a lot of different factors that go into the pricing. You can learn more about the variety of offerings available through our auctions and direct sales to get a better idea of what you will be receiving with your purchase.
Below, we discuss a variety of these factors so that you can understand if liquidation purchases are the right decision for your business. With proper planning, you can create a very successful business model selling and marketing liquidated products with a great margin. You must understand your target audience and the best way to sell these items, but there is a large opportunity for great success with the right approach.
What Is Toy Liquidation?
When a toy manufacturer, distributor, or retailer ends up too many of a product line, collection of returns, or by other ways that we will discuss below, they oftentimes makes the most sense for them to liquidate these products by selling them in bulk at extremely low prices. They can come in sizes that range from a tote full of products to a full truckload.
Large companies that deal with physical products often have complicated models that determine when it is cost effective to continue to sell a product versus when it is most cost effective to sell them in bulk. This could be because of shipping logistics, seasonality, updated product lines, and more. Whatever the reason that these larges stores have decided to sell their products, it ultimately benefits those downstream who are ready to buy liquidation lots. Depending on the reason for liquidation, there are a variety of conditions and qualities that the items can arrive in. It is important that you understand the qualities and conditions that you will be getting your items in, so that you are not surprised or caught off-guard when you receive the lot you won at auction or purchased directly.
If you understand what you are getting, and have developed a business model around maximizing your margins based on this understanding, then purchasing bulk toys through a liquidator like Merchandize Liquidators can be a very effective way to make a great profit.
Where Do The Liquidated Toys Come From?
There are a lot of different sources for our liquidated toys, but there are a few major supply streams that we take advantage of as often as possible. Utlimately, no matter where the toys came from, they were cleared out because the retailers needed the space. Space is one of the most valuable pieces of a supply chain for physical products, and as new models are introduced or customer returns come back to the stores, making space becomes very important.
We buy our toys from many major retailers, and they come in a variety of conditions. Below is a list of some different conditions that our merchandise will be sold in, and what makes each category different:
Returns are an inevitable part of retail operations, and in many cases, the returned items are no longer suitable for sale. In these cases, some retailers opt for a “garage sale”, but many others sell these returned items at liquidation prices. These low prices reflect the fact that there is a wide variety of conditions that you will receive these products in. Some may have less than 10% defective rates, and others may exceed a 50% defective rate. This wide range of variability is reflected in the price for these lots, but if you are unprepared to deal with this level of predictability and hands-on work possibly required to refurbish or restore a lot of items, then customer returns are not for you.
Our in-store returns come from a variety of retailers, and in most cases, there is no count or manifest available. This means that you will be purchasing an unsorted collection of liquidated toys. As mentioned above, the quality and condition of these returns are unpredictable, but this is reflected in the competitive price that you will be able to purchase these options for.
Online returns are similarly unpredictable in quality and collection, but there are benefits to online returns. Online retailers have relaxed return policies, both to stay attractive to customers, but also to allow for a “home try-on” period since often these products are bought sight unseen.
It is not uncommon for someone to purchase multiple options of the same product, and then return all but the one they decide to choose. This means that, overall, online returns are generally in better condition than in-store returns, which is why we make sure to designate the two at our auctions. This is still not a guarantee that your online returns will be in excellent condition, but you may have better odds of a lower defective rate in these lots.
Shelf Stock and Store Pulls
Brick and mortar stores rely on visual merchandising to sell their products, meaning that they must constantly rotate through items to maximize their returns on inventory. When certain toys are found to be underperforming, replaced by an updated model, or out of season, it might make the most financial sense for the retailer to sell these toys at liquidation prices, as opposed to sacrificing valuable storage space and attempt to market them again in the future.
In these cases, we are able to offer our customers toys that are most often still in the package and might suffer from minor wear and tear simply from being hung on display in a store. This could include possible fading on the package from the sun, folds and creases on boxes, and the occasional display item that does not have a package at all.
For the most part, shelf stock and store pull toy liquidations are a great opportunity to get high-quality products in great condition. Some common things to expect with toys that end up at a liquidation auction in this situation include:
- - Seasonal goods that are off-season
- - Discontinued toys
- - Items with retail price tags on them
- - Items with security tags attached
- - Some wear and tear on packaging
- - Expired or soon-to-expire products
- - Packages may be defaced to prevent returns to the original store
- - Some toys have not have their original packaging
Overstock liquidation auctions are an excellent chance to get top quality items at a great price. When a company purchases too many of one product, it may ultimately make the most financial sense to liquidate these items as opposed to leaving them to take up storage space for items that are getting more marketing attention and sales.
Overstock auctions are generally well-organized, manifested, and come with accurate counts about what is included in each lot. The condition is generally new and like new. If you are looking for sale-ready products that require little to no restoration, then overstock auctions are a safe bet. Keep in mind that the auction prices will reflect the level of quality expected out of these items, but this is a major benefit for many of our customers.
When a company goes out of business, or they decide to close one of their locations, the products remaining at that location must be addressed. In some cases, they may be able to relocate many of the products to other stores, but there are always leftover goods. In addition, stores that completely go out of business must liquidate all of their inventory to repay creditors as terms of their bankruptcy, or to simply maximize the final profits.
Closeouts can include things like store displays and marketing collateral in some cases, in addition to the toys that are often manifested and accounted for. If you are looking for a wide range of options to diversify your business with, and offer a wide selection for your customers, then closeout auctions might be a great purchase to consider.
Reconditioned or Repaired Merchandise
In some cases, the retailer or distributor may decide that it is most cost-effective to repair and recondition their merchandise before selling it on the liquidation market. A reconditioned product will have a higher resale value than a used, unrepaired model, but you will pay more to get it at auction as well.
In many cases, reconditioned or repaired products may not come with their original packaging, and may have many other indicators that it is not brand new. However, the products have been quality checked for reconditioned resale, and are a great opportunity to offer popular toys at a discounted price to your customers.
Quality and Conditions of Liquidated Toys
As you can imagine from the various sources of our toys listed above, there is a wide range of quality that you can expect depending on the type of auction you win, the source of the toys, and more. It is important that you understand the range of conditions that you may be buying your toys in, to ensure that you are able to operate your business with clear expectations and maximum profit.
New or Like New
In many cases, shelf pulls, closeouts, and overstock auctions will have toys that are either new or like new, since they were originally available for retail sale. If you are looking for top quality products at liquidation prices, these will likely be your best bet.
If you are buying returns at liquidation auctions, either online or in-store, it is important that you plan on receiving many, if not all, products that have been used. As stated above, the range of conditions can vary, but it is important that you understand that there is no guarantee of quality in these auctions. If you want predictably high-quality toys, then returns are not recommended for you. However, if you are interested in having an opportunity to refurbish your own products, or are willing to gamble on a lot that could be as low as 10% defective, or in excess of 50% defective, then this is a good option for the price.
Refurbished products are generally QC’d before being distributed, but there is no guarantee that they will be in absolute top quality. In addition, you can expect that refurbished products will not come in their original packaging or include all of the original accessories. If you intend to sell complete products to your customers, you will likely need to put in some extra effort to make these packages as complete as possible.
Selling refurbished goods is a great way to offer high-demand products are reduced pricing, as long as you are prepared to possibly put in some extra work to maximize the value for your customers.
Salvage lots are collections of products that are in non-saleable condition but give the buyer an opportunity to handle their own refurbishment processes and maximize their profits with some extra work. If your business involves repairing and rebuilding products before selling them, then salvage lots may be a great option for you. However, if you are interested in top-quality products with minimal restoration or quality control required, then salvage-grade auction lots are not recommended for you.
When you are purchasing salvage products, the price will reflect the condition of these items. In some cases, you may be able to purchase many high-value products at an excellent cost, but again, you must understand what to expect.
Contact Us Today
If you are ready to start buying from our toy liquidation selections, you have a few options available to you in order to purchase. We do not accept online payments, credit cards, or PayPal.
Contact us now to submit your resale certificate to avoid sales taxes, learn about how to become one of our valued customers, and the best method to transact for your purchases. You can find information about each purchase method on our page “How It Works”.