Website design By BotEap.comWholesale salvage merchandise is a product category used in the liquidation and wholesale business to refer to merchandise that has been damaged or has been exposed to a situation where the potential for damage is high. . Salvage is a term that was first used to refer to products that were transported on derailed trains. For example, if a train carrying a container of electronics derailed, the insurance company would pay the cargo owner for the damaged electronics. The insurance company would then take possession of the damaged merchandise and dispose of it through wholesale channels. A salvage buyer primarily purchases inventory that could have deteriorated due to an accident, fire, or flood. While the salvage buyer can purchase this type of inventory for literally pennies off the original wholesale cost, he must sort through the products and try to repair any damaged merchandise.

Website design By BotEap.comThe salvage category is appropriate for a retailer that has access to consumers who can tolerate slightly damaged merchandise in exchange for the implied savings. A salvage reseller should consider purchasing items where the chance of damage is less. For example, a television has a much higher chance of being damaged if a truck carrying it crashes than a pair of jeans. And because it’s so much easier to sew clothing than it is to repair general merchandise, savvy salvage shoppers will prefer to focus on apparel and soft goods. Due to the nature of this wholesale category, it is imperative that buyers inspect products in person, so they can determine what percentage of the inventory can be sold as is and the cost involved in repairing damaged items. If an inspection is not possible, the buyer will want to get a price low enough to mitigate their risk of making a blind purchase.