It’s been some time since we’ve seen a buyer’s market like this, and it looks like things will not be stabilizing for some time. Computers and electronics are now being manufactured by pretty much everyone from the USA… to the deepest and most underdeveloped regions of China… and this means that there will be a lot of choices for consumers to direct their dollars towards. You should be paying attention to what the people are reading and hearing, in order to prepare yourself for the choices you’ll have to make regarding what kind of gear to stock, what kind of deals to put on the table, and what sort of after-sales service will be received with the most appreciation by the current crop of savvy buyers.

First of all, the notion that consumers simply follow advertising and marketing hype is an old strategy that has met its end. Today’s consumer is smart, picky, and willing to wait. Too many people have been burned since 2008 to allow the same thing to happen again… and this means that your service, attitude, and follow-through will determine what kind of success you enjoy for the following years to come.

Secondly, there’s a lot of information being passed around, but it seems to follow a very predictable pattern: electronics are the hottest pick this year, as manufacturers and distributors are rallying to get buyers excited about their merchandise… and the merchandise has never shown such signs of being categorized as low-hanging fruit before. Yes, that’s right… love it or hate it, this is a buyer’s market in the realm of electronics, and you should be very watchful of the trends.

Okay, without being overly-dramatic… here is my list of items to keep your eyes on for this year’s electronics gold rush. In fact, I’ll just put it in another convenient TopTen list format, and let you decide what to do from there:

• Netbooks are going to be the champs in 2009, but there’s two sides to this story. They offer a counterpoint to the question of getting more bang for your buck. How much bang? Well, not blisteringly-fast processor speeds or incredible graphics performance… but for under about $200 bucks, that’s not a big problem for the consumer who seeks a laptop PC on the cheap. These will be coming out of the woodwork  at every turn, and people shopping for the low-cost answer to their portable computing questions will be happy to see them.
• Low-end notebook PC prices are also going to take a dive, as the netbooks create a huge competition factor that keeps the manufacturers from charging the prices they’d like to put forth this year. Even Apple is putting a new plastic-bodied low-cost alternative to the iBook on the shelves this year, in response to the tightened consumer purse strings that have all of the PC makers stressed out.
• Thanks for the memories… GB and MB of memory, that is. I’ve never seen memory so low. I remember when I was in college, a 250MB SyQuest drive (remember those?) cost me about $200 per disk. Nowadays, I just paid about RMB300 for a 1TB drive… and in the USA the prices are hovering around 5 cents per GB, so I expect to find 1TB USB 2.0 external hard drives for $49 bucks or so.
• Software is a necessary evil, but that might change pretty soon. I’ve mentioned cloud-based apps in past posts… and I do believe they will eventually put an end to the deluge of software that is sold for prices that sometimes make people think twice about even getting a PC. The pirate market has put a dent in the biz, too… and it only makes my suspicion that cloud computing will make all that software even cheaper. You should be looking for the price drops, and passing the savings along to your customers.
• LCD monitors can make all the difference between a good Internet-browsing session, and an amazing experience with your PC, time after time. be prepared to offer your customers the styles and sizes they want, at the prices they can afford.
• Game systems are not to be ignored, as people look for something relatively benign in a toxic world of job layoffs, company closures, and housing crises. Personally, I believe that the gaming industry is going to change the way we look at the computer screen… but it might be a little while before things fall into place. For now, it would be a good idea to offer your customers the selection of games and hardware that makes the difference.
• TV sets can bring the experience to you in a better light, and the bigger they are, the better. Prices are also dropping, and even with the maker of those coveted HDTV sets crowing about how amazing their picture quality is, many consumers will be looking for size, not razor-sharpness.
• Blu-ray disc players might be like the beloved beta cassette recorders of yesteryear (no, I don’t think Blu-ray will change the landscape of optical media as we know it) but this time – unlike the days of beta vs VHS – you won’t be stuck with useless discs that don’t play on any other piece of hardware. Where the beta cassettes went wrong was being unusable on any other system… this time around, the Blu-ray disc is compatible with just about any PC that has a decent set of codecs installed, and will be useful as long as the price is low. Consumers will be appreciative of any seller who can explain the mysteries of recording onto disc, and provide the answers to questions regarding their Blu-ray purchases.
• Digital picture frames might not be the sexiest of these items, but they are truly an idea that has become a reality. While many people might have been hesitant to make the switch from those yellowing, faded glossy prints from a one-hour lab that were printed in 1982… it’s going to be hard for people to fight the urge to put their favorite pictures on display – in a slideshow, even – for prices around $30 or less.
• GPS is the new best friend of tech-savvy delivery drivers, salespeople, and long-distance drivers everywhere… why let them have all the fun, as more people get used to the idea that a GPS system for their car is not really a luxury, but a necessity in these crazy days of finding the places you are supposed to be in, amidst all the traffic and chaos? If it helps any, I can tell you that Chinese car owners are one of the fastest-growing consumer segments in the GPS arena.

There it is… the good, the bad, and the not-so-ugly… especially if you’re looking to position yourself for some extreme holiday sales this year! Don’t forget to check in with us from time to time, and maybe even bookmark the Toptenwholesale.com site as one of your favorites, so you don’t miss the news as it comes down the pipeline! Good luck with your holiday wholesaling! Be sure to utilize our helpful search feature to effectively Find it. Source it. Profit!

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Michelle and Scott’s Wholesale Imports have seen substantial sales increases in the past few years amid downturn economy.
Why?
Many of our items are value priced. Earrings, Necklace and Earring Sets, Bracelets, Beauty Supplies, Hair Accessories and many other items and categories have many SKUs selling for $6.50 per dozen sets or less. Customers who historically have sold more expensive items have found out that by switching to a lower price point item, they can sustain their sales and even increase the margin they are making. The end customer out there is looking to save money and get a larger bang for their buck. Michelle and Scott’s specialize in selling individual stores and providing very fast shipping service and low minimums so that the customer can reduce the amount of inventory they have to carry at one time.
Low prices, Good Value, Fast Service and Low Minimums all contribute to the remarkable success of Michelle and Scotts Wholesale Imports and the customers who use them as their fashion accessory supplier.

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What? You mean people are buying cars… and stuff?

That’s right. It also means that the people who used to shop without thinking much about price and value have begun clipping coupons, while the rest of us – the truly savvy shoppers – continue to sniff out the real deals in this period of economic hardship. If you’re in the wholesale business, it could also mean that your personal economy is going to witness some profitable times ahead.

How can you turn this upward trend into something that makes your pockets jingle? Well, if it was easy… everyone would be doing it. However, I would recommend the one place you can turn your focus towards for now is: the Global Banking Community.

The banks are consolidating, even though they call it diversifying.

It looks like big banks around the world are taking a highly protectionist step, as they start putting a bigger squeeze on lending, and more consolidation efforts will make themselves known in the coming weeks. On the other hand, there is a lot of buzz in the international banking community about the ups-and-downs of the market, particularly in the wholesale sector. Hey, why not? It’s money… and banks certainly do love money. Now that it’s positive, you are sure to start hearing a lot more buzz.

Perhaps echoing the blog post Jason Prescott put up here a few days ago, it’s definitely time to start a big push to advertise yourself to the masses, and firm-up those agreements and relationships with manufacturers and distributors. I’m seeing the same thing here myself, in China. While Beijing is giddily announcing a slowdown – and hinting at a turnaround (don’t hold your breath) – of the economic downturn in the PRC, the reality is that I see a lot of people who were spending money like crazy last year… being a lot more frugal now. I’m also hearing a lot of knee-jerk commentary from the ‘luxury-brand pundits’ who feel like they have missed their chance at getting a bite of the apple. Applying blanket statistics to target marketing/branding strategies, and comparing past performance data and recession-battered KPI’s with today’s forecasts seem to be the modus operandi of the losers, while the winners will regard their chosen markets and target those ‘lower profile’ consumers as a unique animal, and treat them with some well-deserved respect.

Wholesale it is, then. Let Daimler struggle with Mercedes-Benz. You should be riding the big wave while the swells are high, so you can be one of the retailers / wholesalers that are enjoying consumer loyalty long after the tide pulls back.

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Advantages of Online Product Sourcing

· Source merchandise for resale at discounted, wholesale pricing;

· Online bid and auction systems that let buyers set minimum and maximum bids and also receive emailed alerts when their max bid is approached by a new competitive bidder for the same listing;

· Levels the merchandise resale playing field by offsetting bigger manufacturer, wholesaler and distributor competition. Online auction and sales sites increasingly offer products across all categories, for purchase at below-wholesale or returned inventory liquidation prices … that can be purchased in smaller lots or No Minimum order sizes.

Online product sourcing can level the field between small-order eBay sellers, and buyers further up the product supply chain (such as Discount Store suppliers), who have the credit lines, warehouses and infrastructure to buy by the pallet or truckload.

· Legal product sourcing in smaller quantities. Major brands and stores – especially higher-priced luxury goods like Coach leather, or national brand stores with their own labels such as Toys R Us and Target Corporation – have engaged in gray-market legal battles with sites like eBay.

Some resellers at eBay, Amazon.com, Craig’s List and regional Flea Markets were acquiring their inventory in underhanded ways. Methods included buying quantities from major department store chains (Target, Macy’s, Dillards) during store sales … then returning what they didn’t sell at auction within the stores’ 30-day Returns period. Or hoarding higher-priced designer brand handbags, purchased at private Member Sales, which then showed up at online auction sites or urban street fairs. This produced brand manager nightmares and provoked aggressive trademark lawsuits, plus pressure on sites like eBay to exclude “gray-market” listings.

However, increased availability of auction sites that offer legal store returns and liquidation lots, or No Minimum Order options, is helping to legalize the product supply chain.

Auction Sites By Product Category

Search Top Ten Wholesale’s network and directories of global manufacturers, wholesalers, distributors and resellers in 50+ different merchandise categories.

· Search for Auctions at Top Ten Wholesale …

· Or refine your search by a product category, such as TTW Electronics

See the site search page at http://www.toptenwholesale.com and click on one of over 50 Wholesale Keyword products categories (ABC – Apparel, Body Jewelry, Cellular – to TVW – Trade Shows, Videos, Watches).

Sites By Product Source & Price

GENCO Marketplace has an established industry track record for supplying store returns, overstocks and seasonal returns to liquidation and store retailers … generally through direct and online sales by the truckload or multiple pallets. GENCO Marketplace moves over $5 Million worth of merchandise every day through such re-sale channels in product categories ranging from Electronics and Apparel to Housewares and Tools. Many of these large liquidation lots feature online manifests, so that buyers know what they’re purchasing.

No Better Deals (GENCO

New from GENCO Marketplace is a bargain shopping site – No Better Deal . No Better Deal brings new and returned merchandise deals to consumers, bargain hunters, online auction resellers and flea market merchants … with the discount/liquidation prices formerly available only to big lot buyers. Clearance priced merchandise with no order minimums.

BidZ.com

Bidz.com features live auctions focused on jewelry, electronics and eyewear. Live Auction product sourcing 24 / 7.

Via Trading

Via Trading features one-stop online product sourcing – closeouts, overstocks, returns — for electronics, general merchandise and tools … with No Minimum Orders.

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How Not to Resell Return Merchandise

While it’s not clear who is the true “perp” in this resale story from only weeks ago, the situation hit regional television news and consumer protection groups. Everyone up and down the product supply chain took a hit to brand and reputation. The end retailer, discount clothing chain Burlington Coat Factory, is trying to make it right.

This Case of the Faux Designer Men’s Coats unraveled when a customer in a Connecticut Burlington Coat Factory store peeled off the second label on his designer brand Perry Ellis coat. Whooops. The coat was a resale item from non-designer Wal-Mart.

Although a real Perry Ellis coat would cost approximately $200, and Burlington Coat Factory was selling the re-labeled Perry Ellis for less than $70, this customer did not feel like a smart shopper: the original Wal-Mart fake Perry Ellis sold for barely $30.

Now it gets complicated – After a Connecticut TV station called out all but one Burlington Coat Factory location in the state selling fake designer coats by sticking a new label on the old label, it was discovered that the faux Perry Ellis’ were really a private Macy’s brand (made by George and Amalfi) that hit the Returned Merchandise marketplace. Burlington Coat Factory blamed its wholesale supplier … who claims to hold legitimate rights to the Perry Ellis and Joseph Abboud labels (so why counterfeit them?) and who, in turn, blamed a “rogue employee” for the mis-labeled coats.

As the finger-pointing and blaming continues, end retailer Burlington Coat Factory decided to face the music, guilty or innocent. Burlington pulled the entire coat shipment from all stores, nationwide. The fake-label story hit Connecticut TV, Consumerist Reports and a few activist blogs. To make it right, Burlington Coat Factory now offers all the money back for faux PE coats, plus a coupon for 20% off.

Re-Label, De-Label, Resale Restrictions

As noted above, buying liquidation and return merchandise can help resellers, retailers and auction powersellers source branded merchandise at off-price discounts, to hold profit margins stable. Note that there are resale and brand restriction agreements that contractually bind “End Resellers” when they move wholesale liquidation and returned merchandise.

Defacing and De-labeling.

Signed agreements governing merchandise sourced from a department store or chain retailer for resale generally cover protecting the brand of the original retailer. That means de-labeling. One method is to deface brand labels, original retailer identification and/or UPC codes:

De-labeling requirements protect the reseller as much as the original retailer or brand: If you purchased a lot of returned private label clothing, originally from department store returns, and then resold the clothing at half-price discounts – but failed to remove all identifying labels – one of your customers may try to return the apparel to the original retailer for a full price credit. The original retailer is out and you, as End Reseller, may be sued for breach of reseller contract.

Other Resale De-labelling Requirements.

Target Corporation — a nationwide department store retailer of clothing, footwear, jewelry, electronics, sporting good and toys – has designated the following “Delabeling and Defacing Agreement for Target Salvage Merchandise” (originally posted to WholesaleU Blog in June 2008 by Robert Cyr: Liquidation Merchandise – Reselling Restrictions?): · All warranty cards to be discarded and destroyed · If warranty is included with product information, the warranty section must be removed with exception of sewn in labels · All tags of clothing, both Target and licensed brands to be removed with exception of sewn-in labels · Black out all sewn in labels · Discard all hang tags and tags · Remove all Target brand products from boxes and packaging from the Target box unless packaging is necessary for the product · Black out all UPC codes · Black out all reference to the Target name

Geographic Resale Restrictions.

Some Reseller Contracts prohibit resale of the merchandise within a certain territory that overlaps with the original retailer or brand merchant. Kmart big box retail stores, for example, restrict resale of Kmart liquidation merchandise within a 50-mile radius of any Kmart store. Such geographic restrictions would work against liquidation resellers in large urban centers, and in favor of rural areas, where big retail stores are more dispersed.

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From the GENCO Marketplace point of view – as early providers of “reverse logistics” services (liquidation, recovery value) on returned or distressed goods – a lot has changed since 1992.

Here’s a perspective on how far the liquidation business has come and how current changes improve and impact salvage buyers today.

–Top Ten Wholesale Blog Editor

~~~~~~~~~~~~~~~~~~~~~~~~~~

Changing Times in Merchandise Liquidation
By GENCO Marketplace
B2B Wholesaler of Distressed Inventories

GENCO Marketplace, which liquidates more than $5 Million worth of product every day, began offering liquidation services in 1992 to reverse logistics customers, who wanted to maximize recovery value on their returned goods.

Back then, the priority for companies was simply getting rid of their distressed merchandise as fast as possible in order to empty the warehouse and cut costs. “Liquidation” may have been accomplished back then in parking lot sales to employees or simply destroying the goods.

For many of GENCO Marketplace’s early customers, we offered a new revenue stream. They were happy with even a small return on their distressed inventory.

How things have changed!!

Today, liquidation is a business. Companies now have budget targets for liquidation revenue and they’ve developed sophisticated programs to maximize recovery value, while minimizing overhead costs.

A few of the changes we have seen over the years, and how those changes are impacting salvage buyers, include:

Internet As Prime Channel. At one time in the recent past, the primary buyers of salvage were discount retailers, flea marketers and brokers. Today, a legion of Internet-based businesses has entered the fray, including eBay power sellers. The Internet has become a prime channel for moving liquidation merchandise.

· For buyers of liquidation merchandise, this means more competition for product and escalating prices. Retailers who formerly liquidated only by the truckload are now conducting Internet auctions for some of the same goods. While you may pay more for loads, increased demand in the secondary market allows you to charge more and make a fair profit.

· Overall, the Internet has been a positive force in the industry, by expanding the market for returned and closeout merchandise.

· On the flip side, Internet as prime liquidation channel has also invited rogue practices. For example, some businesses simply “flipped” loads without ever taking possession. (They found a load for sale online and, before buying the load themselves, they may attempt to sell it online for a profit.) But, after executing a sale, those businesses may learn that the product they “sold” is, in fact, no longer available for purchase.

In instances like the above example, we’ve seen “flippers” purchase a similar load and misrepresent it as the load originally offered. To avoid such rogue practices, you should deal only with sources of supply you know and trust.

Lower Risk From More Visible Load Content. Buyers once purchased mixed loads of various commodities, and they had to wait for delivery to see exactly what they’d purchased. Today, sophisticated liquidators publish online manifests that list products, descriptions, volumes and original value for all items in the load.

These manifests eliminate much of the risk associated with purchasing loads “blind.” Buyers should take advantage of this visibility to know what you’re buying, in advance.

Changed Buying from Higher Freight Costs. Higher freight costs are squeezing profits, translating to less margin for error on load purchases. Buyers used to be willing to gamble more on liquidation loads; but, today, few buyers purchase goods located on the other side of the country. It’s best to find sources of supply with locations near yours, or work with a large liquidator who locates multiple warehouses throughout the country.

Decreased Profit Margins on Electronics Loads. Electronics loads used to be more profitable. Today, retailers and manufacturers are more likely to cherry pick high-quality products from electronics loads, diminishing the load’s value. Also, because the next generation of products are introduced so rapidly, electronics products devalue quickly. So, loads must be remarketed and sold in a hurry … or profits are jeopardized.

Future Trend in Liquidation Merchandise

Economic recession is pressuring retailers. They’re both smarter and more cautious about purchases. This trend is likely to decrease the supply of returns and closeouts, which may increase liquidation load prices.

The only certain predictions we can make:

· The supply of liquidated goods will constantly change based on market demand for particular products, and the specific strategies of retailers and manufacturers.

· The most successful liquidation merchandise buyers are the ones who best adapt to this ever-changing business.

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Online market watchers speculate that Yahoo! will go “back to its future” (be more search focused) … but as a leaner mega search engine, and focused on its digital media organizing strengths.

Yahoo Watchers Predict
Online commerce industry analysts are making educated guesses about where Yahoo’s new CEO will take the brand. Industry pundits include: E-Commerce Times (Renay San Miguel’s Is Bartz Planning a Leaner, More Search-Focused Yahoo?; Frost and Sullivan analyst Mikul Krishna; and Creative Strategies president Tim Bajarin. Here are the signs they saw:

· Back to Search. New CEO Bartz is identifying Yahoo’s core strengths as well as diversions from its core mission.

Strength: Search is Yahoo’s “critical crown jewel,” especially with search products designed for educational and corporate markets. Bartz is likely to focus that strength on mobile search … providing more advertising revenue opportunities.

Weakness: Google is already market dominant globally in search, so, as Frost and Sullivan analyst Krishna noted, “You just can’t keep focusing on that.” Krishna says it’s time for the new CEO to develop new strategies … built on existing strengths.

· Use User-Generated and Social Media Strengths. Yahoo! has invested in user- and social-friendly media sites, like 360 and Flickr. Analyst Krishna sees advertising revenue opportunities: “If you have properties where people are signing in, you have a good idea about demographics and then you can push advertising toward that.”

· Shed Some Media Distractions. Former CEO Terry Semel pushed Yahoo! into TV and music channels … as did Google and Miscrosoft MSN in the drive to become national networks of the digital world. But, according to Creative Strategies president Barjarin, only Google reached VIP status as a media channel on par with NBC, CBS and ABC. And it was done not by growing its own, but through Google acquisitions.

Other online industry analysts agree that the above misstep diluted Yahoo’s core strengths (in search, as a portal), wasting time and money.

· Tap the Portal Gene. In true back-to-the-future style, the new Yahoo! may leverage the old Yahoo! claim to digital fame: As organizer, custom sifter and accessible aggregator of an overwhelming amount of web “stuff.”

The One Word for this is: Portal. Information portal is where Yahoo! earned its stripes as a search engine. That content organizing strength is still pulsing strong in Yahoo’s corporate background.

Now we wait to see new leader Bartz’s next move.

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