Many companies do engage in business of buying and selling. These companies that buy items from other companies are called liquidators. They buy these items because these companies have these items in excess to what they need, companies that are closing because of bankruptcy, or they transfer from one office to another workplace. Some sell their excess items to cover other expenses incurred.
The wholesale liquidators purchase these items at a very low price. Not to mention that these items are of high quality. Some also hire a broker just to sell their unwanted items to the market.
The business is made like this; Companies sell their unwanted or excess items or stocks, another company buys their products in bulk at a very low price, then they resell it to retailers at an affordable price, and then these retailers sell these products to their customers. There are some with brokers who gains from commission or marking up the price.
Many think that these products are sold cheap because it has low quality or what we call sub-standard. But the truth about this is that these products are high quality goods that were purchased by companies for their office use. These companies will not prefer sub-standard products. That is why it is an advantage to purchase these items from these companies. Best of all, they are selling it well below the wholesale price!
Another way that we can do wholesale liquidation is the use of Drop Shipping. Drop shipping is another business technique which the retailer, which is you, will not keep your stocks at hand but, it will be shipped to the wholesaler and will be delivered directly to the customer. This is another way that you can even save from shipping expenses.