Founded in Miami, Florida in 2003, Merchandize Liquidators (ML) is now one of the largest wholesale liquidators in the southeastern United States having liquidated nearly one billion dollars of retail goods. ML is a specialist wholesaler of liquidation merchandise and carries a wide range of products and brands from national retailers. ML supplies goods at a fraction of their original value to thousands of customers both in the USA and around the globe.
Why does liquidation exist?
A One-Way Street
Retail stores require a logistical chain of support to ensure products arrive at the store, are placed on the shelves and sold to customers; but this chain is a one-way street.
Stores fill up with merchandise returned by customers, damaged, overbought, perishable, or deemed unsellable (out of style, out of date, model changed, etc.). The clutter and lack of space poses problems for brand integrity, efficiency, and shelf real estate.
Instead of adding an operation to remove the merchandise, retailers outsource this work to reverse logistics companies, which remove merchandise from stores, distribution centers, and other logistical hubs.
How does liquidation work?
Surplus inventory is sold...
Reverse logistics companies bid for direct contracts with retailers to acquire liquidated product at a small fraction of the retail value.
...and bought again...
Products are bought by liquidators “at pennies on the dollar.” Liquidated products are then sold to secondary market wholesalers, secondary market retailers, or other re-sellers.
...and sold again!
Re-sellers, e.g. extreme value retailers, creatively re-retail this liquidated product to appeal to a secondary market client base and experience.