The way that many big businesses acquire a contract to Costco may seem a lot more simple than you might imagine – they simply ask! It’s one of the most basic ways of manage business, but with Costco being such a big company, they can’t possibly keep up with all the people that would desire to do business with them, and so they rely on people contacting them with proposals so that they can ascertain on a case by case basis whether the venture being offered is one that they would like to commence.

 

This is the precise way that many liquidation wholesale suppliers are able to get a contract to Costco overstocks and consumer returns liquidations. In fact, the two are quite separate entities and if a company submits a proposal that is good enough, they may be lucky to land them both.

Costco deals in their unwanted goods in two separate categories. First, they have overstocks which means that they ordered too much of a item and are unable to shift it in their geographical region. The next is customer returns liquidations, which consists of items that shoppers have returned to the store, being unwanted or damaged. A contract to Costco by a wholesale liquidator may deal with one or both of these issues, even though the store works with them differently.

Usually a wholesale liquidator will be able to pick up customer returns liquidations at a much lower cost than they would pay for overstock. This is primarily because Costco takes into account that returns will generally contain some hard to sell products, whereas the majority of overstocks are in A1 condition.

As a retailer, you probably think that it’s easy to just bypass the middleman and go straight to Costco and get your own liquidations contract. But things aren’t quite as easy as this and in fact, to be in this standing you will need to have a lot of liquid cash available and also ample storage space for the items that you may receive. When you bear in mind that Costco sells everything from kids’ outdoor toys to gardening equipment and home entertainment, you could end up with a massive load of items and nowhere to keep them.

That’s why it’s better to do business using a wholesale liquidator. They will split up the items that they have purchased so that you can buy them by the pallet load and also have an idea of what you will be receiving before it arrives on your doorstep.

A contract to Costco may be an enviable thing to have, but when you consider that you can still pick up goods cheaply by using a wholesale liquidator that has all the equipment and space that they entail to process the products, you will see that in actual far it’s far easier for you to run a home business, or even a smaller retail operation, by leveraging against the buying power, support and experience of the bigger fish in the wholesale industry.