With supply chain backlog causing a shortage of new goods, professional liquidators are busy. Massive liquidation warehouses cheaply buy unsold or returned items from the likes of Amazon and Target and then sell them in bulk to liquidating outfits. University of Houston consumer behaviorist Dr. Olivia Johnson says with skyrocketing inflation, this is great for the American consumer! Items range from upscale clothing to baby diapers. "This is BIG MONEY. Look at companies like eBay, Marshalls, and TOPHATTER. These companies are popping up everywhere."
It's a $644 billion industry! Considering that high inflation is causing many Americans to cut down on the 'extras' (new clothing and home furnishing, etc) and focus on basics ( food and gas). So retailers are now stuck with more unsold inventory and returned items than before. Dr. Johnson says it's costly. "It doesn't do the retailer any good at all to have this inventory on their books!" Many retailers are now choosing let a professional liquidator process and sell their unwanted goods at much lower prices loved by consumers. Dr. Johnson says it's a strong trend. "Millennials and Gen Z-ers are not interested i spending a whole bunch of money on stuff, and they're trying to figure out, 'How can I get it cheaper?!"
Long live cheaper!
Photo:GettyImages
Liquidation shoppingPhoto: Getty Images