The internet is powerful force in retail sales. But, did you know that around 70% of all retail purchases are still done through brick and mortar stores instead of online? According to the NRF (National Retail Federation), U.S. Retail Sales are projected to hit $3.9 Trillion USD in 2020. Meaning, if 70% of sales are still done in brick and mortar stores, then $2.7 Trillion is bought physically instead of online.
Part of the fastest-growing segment in Retail is Off-Price Retailers like a liquidation store. Liquidation stores are the most profitable of all retailers because the cost of goods (COG), also known as the cost of inventory, is so low. Recently, there is a trend into Bin Stores. These bin stores buy merchandise from liquidators like us, Merchandize Liquidators. Buying pallet merchandise gives you the lowest cost for resale.
What is a Liquidation Store?
A liquidation store falls under the general category of Off-Price Retail. This is a type of brick and mortar store offering items at a lower price than regular retail. A few examples of discount and off-price stores are TJMaxx, Marshalls, Dollar General, and Ollies. Depending on the type of store, there are discounts between 30% to 70% off of retail pricing.
Open an Amazon Liquidation Store
Retail is fun but it is a lot of hard work. Creating a name and theme for the store is only better when seeing happy customers shop while saving money. When you open an Amazon liquidation store, you’ll have a great opportunity in the community to help the local economy. Not only do you employ workers and help feed their families, but you also create savings for the community. Here are some important considerations for opening a store:
Pick the Right Location
Remember that your liquidation store has a physical location! Try driving around your city and suburbs and look at the available commercial real estate. You’ll want great traffic and similar discount businesses surrounding your store. Picking the wrong location will spell doom for your business. For instance, maybe it’s too nice and surrounded by upscale retail. If that happens, you won’t fit in and no one will shop at your store.
Rent an Overstock Store
Besides location, success for an overstock store starts with rent. Before talking to any landlords about rent, use google for open retail spaces. Then, get in your car and look around the surrounding area. After you drive, look again at the for lease advertisement.
You’ll often find lease documents with opening rental prices. Now think about your own store and the sales it will need in order to cover the rental cost. Obviously, the lower the rent the better. Keep in mind that the lease price is negotiable. After you settle on the rate, and if your math works out, then you are set for success.
Marketing a Liquidation Store
The best way to market a liquidation store is with Word-of-Mouth Marketing. This type of marketing is when customers have a great experience and tell their family, friends, and coworkers about it. Successful word-of-mouth marketing is simple – make sure your customers save money and have fun doing it! The best way to keep customers happy is will a fully stocked store. Keep on stocking the store with great inventory and Word-of-Mouth Marketing will start generating more and more customers for your store!
Overstock Store POS
An overstock store needs a reliable customer check-out. But, retail software can be expensive! Please don’t fall into the trap of buying $25,000 worth of retail software when you can find cheap retail software today. Use a company like Vend POS and save your money for marketing and inventory! You can try it for free to see if it’s the right fit for you!