What is GENCO Marketplace?
GENCO Marketplace is the largest wholesale merchandise liquidator in America. The company annually liquidates over $2.5 billion worth of retail merchandise. You can find them online at gencomarketplace.com. GENCO has shipping centers located in five states across the U.S. and one facility in Canada.
GENCO Marketplace is a subsidiary of GENCO, a Product Lifecycle Logistics Company, which is owned by FedEx.
What is a Product Lifecycle Logistics Company?
Put simply, they manage the movement of retail products from point A, the manufacturing facility, to the final retail location that will ultimately put it on their shelves and sell it to the consumer. GENCO Marketplace was started in 1992 when their clients asked them to handle the reverse logistics as well. That is, how to get merchandise that cannot be sold in stores (returns, closeouts, etc) moved out of the stores and then liquidated.
Where does the product come from?Merchandise can come from several sources. Customer returns, closeout items, and refurbished items are their top three sources of liquidation merchandise. All merchandise comes from major retailers across the US and Canada. If you have seen the brand in a national retailer, you will more than likely see it in GENCO's inventory.
What type of merchandise can be purchased on gencomarketplace.com?In a word...Everything! If you see it in retail, you will most likely see in on gencomarketplace.com. Here is a list of common items they sell: Computers, Printers, Paper Goods, Pet Supplies. Small Appliances, Toys Sporting Goods, Clothing, Jewelry, and Furniture.
These products from well known brands such as HP, Plantronics, Epson, Panasonic, Xerox, Sunbeam, Hamilton Beach, Kitchen Aid, Shark, Reebok, FitBit, Gold's Gym, and many more.
Product Condition GENCO marketplace removes all visibly broken/damaged items when they process the incoming shipments but all merchandise is "as is." There are several production conditions and it is important for the buyer to understand what each term means.
Customer Returns - This is product that has been purchased by major retail customers and returned to the store for any number of reasons, they are then offered as wholesale returns.
Premium - Premium lots are a higher quality of returned merchandise. The majority of which is ready for immediate resale.
New/Never Opened - These retail surplus products are sealed in the original manufacturer's packaging and will look just the way you'd see them in a retail store.
Opened/Resealed Boxes - These are open box products. Which means they were previously opened, but they have been taken out of the box and tested to ensure the function properly. However, they are sometimes missing accessories.
Scratch and Dent Products - This merchandise is not tested but the vast majority are fully functional. However, they may have scratches, or missing accessories.
Refurbished Products - These are used products that are in like-new condition and have been restored to factory specifications.
How is merchandise sold and how does the purchasing process work?All merchandise is sold in "lots". A "lot" is a pallet of like kind merchandise. There are three ways you can buy on gencomarketplace.com. Auctions, Buy Now/Fixed Price, and Call In. All purchase must be made with a credit card or with a bank to bank wire transfer. Full payment must be made prior to shipment. Also, the shipping method must be selected prior to making a purchase. The buyer is responsible for all shipping costs.
AuctionsAuctions are all online, usually done through Genco's mobile app. Every auction will have a start time and an end time. Bids can be placed individually or as a "proxy bid." To make a proxy bid you enter the top amount you are willing to pay for the lot to be auctioned. The minimum bid to keep you in first position will be used and will be raised one bid at a time until you either win the auction or until another bid higher than your max bid is received from another buyer. Each and every bid made on gencomarketplace.com is a binding contract. You are agreeing to purchase the lot at the bid amount should you have the winning bid. Failure to pay for a winning bid will result in your account suspension.
Buy Now/Fixed PriceEach lot will have a buy now option. Listed beside each lot you will see a "retail price," which is the MSRP total of all merchandise within the log. Below the retail price will be the buy now price. Within each lot is a list detailing all the individual items within each pallet.
Occasionally there will be lots that require a phone call to a GENCO marketplace manager. This generally occurs when the merchandise has some kind of restrictions associated with it. The buyer must be informed of these restrictions prior to purchase and shipment.
Who can purchase GENCO liquidation lots?That is one of the great things about gencomarketplace.com. Anybody who registers a FREE account can make purchases on the website. Common customers are smaller liquidation chains and individuals who sell on eBay or through their own websites.
A great feature that you will find on their website is their "Buyer Resource Center." Here you will find all sorts of helpful information that is geared toward helping their customers learn how to buy and then sell the liquidated merchandise. There are videos, "tricks of the trade" articles, eBooks, and even a free newsletter. GENCO believes that knowledge is power and the more knowledgeable their customers are, the more profitable those customers will be in their own businesses.
How do buyers make money purchasing liquidation merchandise from GENCO?
Until recently individual buyers had no access to the liquidation market. This was generally reserved for major liquidation chains that had the buying power to purchase truckloads of merchandise at a time to sell in their stores. But with the internet came a great opportunity for aspiring entrepreneurs to buy this merchandise in smaller quantities and sell them on eBay, Craigslist, their own websites or even flea markets.
When a product is returned to a major retailer, they do now want to put it back on their shelves because the packaging may be disturbed, or there may be a scratch or small flaw. Or a new product line has been rolled out and the retailer must get rid of the old model to make way for the new. It would be incredibly expensive for these retailers to warehouse all this excess merchandise so they choose to get rid of it through liquidation. That is, to sell at a deep discount to quickly sell off all merchandise that can no longer be sold in their retail locations.
Because the merchandise is so deeply discounted it gives opportunities to other buyers to then resell the individual items within each lot to private individuals who are looking for a good deal on their purchases. By buying directly from the liquidator, small businesses are able to be the "middle man" and make a profit on the merchandise they purchased at the discounted price. Everyone wins in this scenario. The major retailer gets to unload merchandise that is now worthless to them. Small businesses have an opportunity to buy good product at less than wholesale prices. And individual buyers get to buy perfectly good product at a price that is less than retail.
To find out more information please go to gencomarketplace.com.