​Let’s face it.
Most everyone knows about Amazon. They’re the leading e-retailer in the United States with over 280 Billion Dollars in sales in 2019 alone. Not to mention roughly 150 Million Amazon Prime Members, 300 Million active customer accounts worldwide, and an average 21% revenue growth year-over-year.
With these kinds of numbers, it’s easy to see they are a force to be reckoned with.
If you sell products online, you know Amazon runs a program called FBA (Fulfillment by Amazon). This third-party logistics provider (3PL) service allows other businesses to utilize Amazon’s massive infrastructure to provide ecommerce fulfillment for their own customers.  Amazon is the largest third-party logistics providers (3PL) company in the world.
Basically, you ship your inventory to Amazon, advertise your products for sale on the web, and the online powerhouse takes care of the rest. Pick, pack, ship, and even customer service — all done on your behalf.
Seems like a great way for small to medium sized organizations to do business, right?
Well, not so fast. Once you stop and take a closer look, FBA may not be the all-in-one logistics answer you thought it was and here’s why
High Costs That Continue to RiseWhen an e-tailer does as much business as Amazon, there has to be an enormous amount of people and infrastructure involved to make it happen. FBA is no exception.
At last count, there were over 100 fulfillment centers and 15 sort centers worldwide (with more on the way soon). All total, these facilities account for more than 124 million square feet of commercial space in the US alone. If you think a network this size might be expensive to build and maintain, you’re right. Amazon has proved this out in the past, having announced regular periodic price increases on fulfillment and inventory storage fees. 
Because of this tremendous overhead, and the massive number of packages shipped each year, Amazon is actively looking for new ways to reduce operating and shipping costs. And with good reason — Amazon’s shipping cost in 2019 were 38 Billion dollars and take massive loses on shipping to keep customers happy.
To remedy this problem, the web giant has the long term view that investing into their own private freight, air transport, local delivery options, and even drone programs will be the most cost effective strategy to offset rising transportation expenses. However effective this strategy is long term, these are obviously high-priced and capital-intensive expansions that need to be funded somehow.
You are likely paying for these shipping losses and future investments through Amazon’s FBA rate increases for sellers.
Year after year the cost of Fulfillment by Amazon has continued to rise. For example, the cost for storage TRIPLED during the 2018 holiday season, forcing businesses to either overstock (risking added storage expense for idle inventory) or understock (saving money but possibly losing sales during the holiday rush). Fulfillment fees in 2018 have also increased significantly compared to the rates in 2017.
That’s a tough spot to be in.
Counter this with independent logistics companies who DON’T charge extra fees for busy periods and maintain more consistent overall storage pricing. Many logistics companies have in-house fulfillment infrastructures in place that are ready to grow with your business or are willing to make the necessary operational investments to support your shipping activities. As compared to Amazon, where you are just part of the machine, your 3PL will likely have a vested interest in the success of your business. They view you as a partner; not just another contract.
Lack of Personalization OptionsWith today’s savvy consumers, there are three key elements involved in the successful sale of physical goods. Think of these as the trifecta of building a strong brand.

• A great product
• The ability to ship quickly and reliably
• A means to differentiate yourself and stand out from the crowd

While finding/developing the right product is up to you, distribution and marketing are areas that can be outsourced to others.
There’s no denying that Amazon has their act together when it comes to order fulfillment. Their billion-dollar operation is a model of efficiency that cranks out thousands of orders every day. But on the same token, this is also one of their biggest weaknesses.
In order to handle this type of volume, Amazon’s processes have to be as streamlined as possible. That means zero deviation from center. Each item is packed, wrapped, and sent the exact same way … EVERY … SINGLE … TIME. And by default, no less, in “Amazon” branded boxes (unless you opt to pay more for a generic one).
That’s fine when you are shipping everyday items or low-cost consumables. But NOT if you want to stand out from the crowd. For the customer experience it should be about YOUR brand — not the vendor’s. One of the best ways to accomplish this goal is to implement branded packaging, gifting or some other means of differentiation in your fulfillment process.   
Partnering with the right 3PL eliminates this roadblock. As most have white label logistics solutions, which allow you to customize your order as you see fit. Whether it is branding your shipping boxes with your logo or tagline, having a specific plan for packing filler, custom inserts, or having a special arrangement for how the contents should be packed in the shipping box, 3PLs will have experience and flexibility in accommodating these types of requests.
Losing Control of your InventoryBuying trends change constantly and savvy online sellers stay ahead of the competition by adjusting their tactics and strategies to meet these changes. One major downside of the FBA program is some sellers are required to send a large portion, if not all, their inventory to an Amazon fulfillment center. By relinquishing physical control of their inventory, they can’t adapt as quickly which can put them at a huge disadvantage.
Imagine a scenario where a seller sends half their inventory to Amazon for fulfillment and keeps the other half for their own eCommerce store. Everything is going great until they get a call from a big box retailer (Target, Walmart, etc) for a large order which is a huge win, but then they are forced to pull from their on-hand inventory and are left with very little inventory to fulfill orders from their own eCommerce store.
In the middle of the COVID-19 epidemic in March 2020, Amazon prioritized essential products in their marketplace. As a result, sellers who were deemed as selling non-essential goods saw huge delays in delivery times and Amazon was not accepting inbound goods from them to replenish their stocks. This was devastating to some sellers as sales dried up and they had no way to sell their product elsewhere since their inventory was stuck at an Amazon fulfillment center. In addition, Amazon restricted FBA inventory for the 2020 holidays which had a negative impact for a lot of sellers. While the COVD-19 crisis was unprecedented event and it understandable why Amazon took these measures, it highlights some of the dangers of consolidating your inventory with Amazon or being too reliant on a single sales channel.
With the growing number of sales channels, including Big Box, online retailers, and marketplaces (Walmart, eBay, etc), it’s advantageous to have control their physical inventory so they can more easily meet the demands of their buyers.
Also, like most growing brands, your business is constantly changing and adjusting to the customers’ needs. Having access to your inventory to make updates to your product or packaging is common practice and could make or break your business, especially during your peak shopping seasons. Being able to access your own fulfillment center or that of your 3PL logistics providers to make these changes is something that has to be considered.
One way to keep control of your inventory while still maintaining the Prime treatment (i.e. selling to Prime members) you get with the FBA program is to participate in the Seller Fulfilled Prime program. Through this Amazon program, the seller still gets the Prime badge next to their product, but the order is fulfilled by the seller or through their 3PL partner. This scenario allows the seller to retain control of their supply chain and better manage costs while ensuring efficient deliveries and excellent service.
Impersonal Customer ServiceWhile we’d like to think that everything will run smoothly once set up, most know that’s simply not the case. No matter how much you plan, build, or execute, problems are still bound to creep up.
So what happens when your customer runs into an issue? How will it be handled? Better yet, what happens when YOU have a problem and need a prompt resolution?
With FBA and Seller Central, you’re pretty much in the same boat as one of their customers. That means calling an 800 number and speaking to a lower level associate about your problem. Someone who has no clue what your business is about, your history, or how you like to be treated.
Or being subjected to a barrage of back and forth emails where your case is mistakenly “closed” before the problem is actually fixed. You get passed around like a hot potato from one customer service center to the next as you wait for a resolution that never comes.
Working with an independent 3PL partner is the exact opposite. A typical 3PL is staffed with dedicated customer service representatives located mere steps from the actual distribution floor, where your products sit. Agents who know about you and your business and understand what makes them tick. You will likely develop a close working relationship with your customer service rep and they will become your advocate within your 3PL’s distribution center.

A wholesaler is a business that buys products from manufacturers and sells them to other businesses. The wholesaler doesn't operate a store; instead, they supply your small business with inventory that you sell to customers.
 
Whether you run a brick and mortar business or e-commerce store, wholesale distributors play an important role in connecting manufacturers and store owners.
 
Find the Right Small Business Wholesale Supplier
As a small business, you may work with one wholesale distributor or several. But finding the right one to partner with can be tricky. You'll need to find a wholesale distributor that:
 
Connects you with the manufacturers and products your business needs
Has prices you can afford
Serves your geographic region
Is reliable, trustworthy, and easy to work with
Before you can find the right wholesale company to work with, you need to know what products you are selling. Once you know what you're looking for, you can begin searching for the right wholesaler to supply your business.
 
1. Understand Your Industry's Distribution Channels
There are many ways a product can go from manufacturer to retailer. Not all wholesalers serve the same market. Understanding your industry's distribution channels and supply chain can help you find the right wholesale supplier for your retail or online business. Different types of wholesalers include:
Manufacturer: For some products, you can buy directly from the manufacturer. Boutique stores generally buy from small (sometimes one person) manufacturers.
Importer/Exclusive Distributor: A company might have the sole right to import and distribute a product in a certain country. Some may sell directly to retailers, others sell to smaller local wholesalers who in turn sell to stores.
Wholesaler/Regional Distributor: There are usually regional wholesalers who take delivery of boxcar-sized lots and sell to local wholesalers, who then sell to small businesses.
 
Jobbers: These individuals make daily deliveries to local grocers and retail brick-and-mortar stores.
 
Some retailers will move enough volume to bypass jobbers, or maybe in a smaller industry, importers sell directly to retailers. Each industry has its own unique distribution channels, which can then vary by product, region, or country.
 
When you first start, you'll be buying from the smaller wholesalers at higher prices. As your volume increases, you'll be able to get better pricing or move up the supply ladder to a bigger wholesaler.
2. Try the Manufacturer First
Paying wholesalers cuts into your profits. To remove middlemen from the equation, you can start at the source.
 
If you're selling branded items, go directly to the manufacturer of the product. They might sell to you depending on their minimum order requirements. If you're too small for them or they only sell through established distribution channels, ask them for a list of reputable distributors you can contact.
The fewer people you have to go through, the lower your cost will be, allowing you to be more competitive in the marketplace.
When you contact the manufacturer, request a sample of the product you intend to sell. This will allow you to look it over and inspect the quality to make sure it's something you want to sell.
3. Have a Productive First Contact With a Wholesale Supplier
Begin contacting wholesale distributors, either using the list you got from the manufacturer, phonebook listings, or a wholesale directory You want to find out:
 
Their minimum order requirements
Their wholesale unit prices
The region they supply
You can make this initial contact by phone or email, then follow up by phone if you need more information or would like to move forward. To find the best possible match for your business, be honest about what you're looking for and don't try to sound bigger than you are.
 
Don't be afraid to let the people you talk to know you are doing research and looking at other competitors as well. This can help you get better prices, even if you are starting out small.
 
4. Get Specific in Online Searches
If you do an online search, don't just search for general wholesalers or distributors. Be sure to include keywords from your products or niche. Try product names, model numbers and brand names. If any of the potential distributors you find don't have an email address or phone number readily available, you could do a WHOIS search to find the website owner's contact information.
 
The more potential wholesalers you find, the better you'll be able to comparison shop and get a feel for what normal industry prices are, as well as get competitive quotes.
 
5. Look for Wholesale Lots on eBay
Since eBay mainly targets retail consumers, the wholesale options you'll find here are usually only suitable for very low volume retailers. But if you're just starting out, eBay might be the easy start you need to dip your toes into e-commerce.
 
It's also possible that the people who are selling direct to consumers on eBay also have a business-to-business side of their business as well. It's easy to make contact with them on eBay to find out if that's the case.
 
6. Check Major B2B Marketplaces
There are many large B2B marketplaces online where you can buy large lots of products at low prices. Alibaba.com is one of the largest B2B marketplaces of manufacturers, importers, and wholesale distributors. Other B2B marketplaces include:
Look for a marketplace that serves your country or region. There are also industry-specific B2B marketplaces; these can either serve a single country or a global population of retailers.
 
7. Join Industry Groups, Forums, and Other Professional Networks
More experienced small business owners in your industry or niche are often the best source of information about wholesalers. However, other retailers likely will not be eager to share supplier information with competitors. Invest time in networking to build the trust and connections that will help you find the best possible wholesale suppliers for your small business.
 
Participate in online forums which can be a great source of free information and help from other people with experience in your market or industry. You can also build your LinkedIn profile, subscribe to industry newsletters, and join your local Chamber of Commerce or small business networking groups to build your professional connections.
 
8. Subscribe to Your Industry's Trade Publications
Trade magazines are a wealth of information about businesses and relationships in your industry. Nearly every advertiser in the magazine will be a product manufacturer or distributor looking to reach you, and a single issue of a trade magazine can provide the names of dozens of wholesalers or small manufacturers.
 
In addition to magazines, subscribe to online newsletters and blogs. These are often the best way to keep up with daily or weekly industry news and updates.
 
9. Attend a Trade Show
Trade shows are one of the most powerful ways to build and grow your business. These events are designed for retailers to connect with distributors and manufacturers.
 
Trade shows allow you to meet and speak with dozens of wholesalers or manufacturers in a single day. These face-to-face conversations often avoid misinformation or communication difficulties that can occur when contacting people online.
 
The Trade Show News Network is the largest directory of trade shows online. You can search for a trade show by industry, date, city, state or country and/or event name.
 
10. Don't Be Afraid to Make a Mistake
Your first wholesale supplier may not be a vendor that you work with long term. Creating your perfect supply chain is an evolution involving a lot of trial and error.
 
Remember that all you need from your first supplier is a product that you can ship at a profit. It may not be the best wholesale price for you, but you can make changes as your business and professional network expand.
 
Your first goal is to ship a product. Then you can improve your bottom line by trying other wholesale suppliers as you continue to build and grow your business.
 
 

It is always a hard call to file for Chapter 11 and shut down the store or business you have built for so many years. On the other hand, that is what some companies need to face in hard times. It doesn’t matter if the economy is going down or due to personal circumstance ruining finances, close outs could be predictable and in most cases it is the only option. So, what’s need to be done with the excess inventory? You have to consider contacting the most reliable closeout buyers.
Liquidate Product is a reliable closeout buyer and is dedicated to buying leftover stocks and merchandise from a company or store which has gone bust. A lot of companies or businesses, with overzealous buying managers, even utilize a liquidator or closeout buyers to purchase excess inventory which are only sitting in their stockrooms. While closing down is horrible news for any company, this doesn’t have to signify further loss. Through using Liquidator Product, bankrupt companies could still get earnings from the leftover stocks and merchandise.
Apart from being capable of getting cash from excess inventory or remaining products, companies which have closed store need to worry on arranging the going out of business sale. These businesses don’t have to spend extra money to proclaim the liquidation sale. They do not need to expend energy to look for buyers who’ll be interested in the excess inventory. They just have to find the best inventory liquidator to purchase the purchase the remaining consumer items or products.
What is more, some wholesalers, retailers, manufacturers as well as other kinds of companies which have filed for bankruptcy may find themselves restricted with resources. This can mean they that they have to right away vacate the factories and stores, and look for stockrooms to store the remaining products temporarily. With Liquidate Product, beleaguered companies don’t need to stress over short-term storage as they could have their product picked up the moment the sale is final.
Liquidate Product is the best closeout buyer that is capable of offering product pick-up.  The kind and size of product must not matter too. This company is capable of buying and picking up clothing, sporting goods, electronics as well as automotive parts and even a whole variety of diverse items. What is more, they will be capable of paying the bankrupt company upfront.
It doesn’t matter if it is due to bankruptcy or due to the economic downturn, you’ll find companies closing shop. It surely will be bad news must that scenario ever occur to your own business. In spite of this, still there is a way to survive, through getting the help of excess inventory buyer, any company which has just closed could find the time to get better as well as plan the next, new business venture.
Liquidate Product could assist you sell off your excess inventory or leftover items and at the same time give you good as well as fair price for your closeout merchandises or products.

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​Bulk Inventory Buyers
When you’re faced with closing your doors, selling your inventory effectively can mean the difference between paying off your debts and filing for bankruptcy. Excess Inventory Buyers With enough money from an inventory liquidation, you might have enough to regroup and start another venture. Understanding your options for closing out your inventory will help you make the best decisions for your situation. Closeout Buyers
Determine Your Goals
If you are ready to walk away from your business with a loss, you have more options for liquidating your inventory than if you need to maximize your revenues. Amazon Sellers Decide if you want a quick exit or maximum value for your inventory. Set a deadline for your liquidation and more than one amount you’ll accept for your inventory based on different sale dates. For example, early on, you might want to try an in-store sale to maximize income, while at your deadline date, you might donate leftover inventory to a charity to take a write-off and lower your tax burden. Discuss your options with an attorney if you believe you might have to declare bankruptcy. Debtors might challenge your sales if they appear too discounted.
Value Your Inventory
Determine what your inventory is worth retail, wholesale and as a donation write-off. Calculate the costs to sell it retail and determine what your net return will be on each of these three liquidation methods. Set retail prices for the first week of a sale, then lower prices for the final week after your initial rush of bargain hunters has made their first pass. Set your starting bargaining price for selling your inventory in bulk and your bottom-line price for lots before it’s worth more to donate it.
Hold a Sale
Consumers are familiar with going-out-of-business sales, and you might be able to liquidate most of your inventory that way. Bundle items you think will be able to sell at any price with your more attractive items to encourage more sales. You might offer an extremely low price on a slow mover if a customer buys a more-attractive product, or give items away with middle-of-the-road items to increase the chances you’ll move them both.
Contact Competitors
If you’re looking to move your inventory without selling it piecemeal, contact your competitors to gauge their interest. In addition to direct competitors, contact resale and thrift shops that don’t often get the opportunity to buy new items. Set a price for your entire stock, which they might not want, then entertain bids for what they want. By the time they cherry pick, you might not have enough left for a sale. However, a donation might close the gap and make it worthwhile. If you feel you can move the inventory piecemeal with a more drawn-out sale, set a firm price for the entire lot -- your competitor can still make a profit from the item he wants to sell, discounting or donating the rest.
Contact Your Vendors
Ask your vendors if they would like to buy their products back. Depending on what the inventory is and what condition it’s in, your vendors might be able to resell it to other customers. Be prepared to take a more significant hit than if you try to sell it retail or to bulk buyers. Your suppliers won’t offer you what you paid for it, however, because it’s cheaper for them to sell their own inventory.
Go Online
If you can’t move your items fast locally, offer them for sale online. Flea market vendors, nonprofits, thrift stores, liquidators and other bulk sellers scour the Internet for deals and might drive to your location and truck your items off for individual resale. Be prepared to break your inventory or ship it, calculating shipping prices before you agree to any sale that requires you to send your inventory to a buyer.
 

Excess Inventory Buyers
In the age of the Internet, it's adapt or die for many brick-and-mortar retailers. Sears looks like it's closer to the latter and here's why. USA TODAY
The power of a brand is that it can instantly give consumers the impression of quality and consistency. A great brand is an assurance that a product or service is worth the asking price and more.
Closeout Buyers
However, when a brand goes bad, it can be caught in a negative feedback loop that the company, despite its best efforts, can't escape. The five household names below are in this predicament, and it may only be a matter of time before they disappear.
Kmart - Wholesale Liquidation Buyers
 While the whole structure of Sears Holdings (NASDAQ: SHLD) looks like it's teetering on the edge of bankruptcy, Kmart may be the division of the company that succumbs first — the lamb that's sacrificed in an effort to save the Sears brand.
Although Kmart is actually performing slightly better than Sears, relatively speaking, the Kmart chain has endured the largest number of store closures over the past year. At the end of the second quarter in July, there were 273 fewer Kmart stores operating than there were in the year-ago period, while Sears had 69 fewer stores.
Sears chairman and CEO Eddie Lampert swore last year he wasn't shuttering the Kmart chain despite all appearances to the contrary, saying that as long as one store remained profitable, there would always be one open. Though the chain still shows an operating profit at the moment and its sales aren't declining as quickly as Sears', it's still being dramatically downsized, and it may ultimately shrink to the point of disappearing.
Shoppers walk toward a Kmart store on August 24, 2017 in Elmhurst, Illinois. Sears Holdings Corporation, the owner of Kmart, said today it was planning on closing another 28 Kmart store including this Elmhurst location.   (Photo: Scott Olson/Getty Images, 2017 Getty Images)
 
 
 
The Limited
The Limited was once a popular working woman's clothing brand owned by Limited Brands, which also owns Victoria's Secret and Bath & Body Works. But the parent company must have seen the writing on the wall when it sold The Limited to private-equity firm Sun Capital Partners. The Limited ended up closing every single one of its 250 brick-and-mortar stores and firing 4,000 employees, with the intent to move all its inventory online.
It's not an unprecedented move. Kenneth Cole shut down its physical operations and went all in as an online-only store, as did women's fashion outlet Bebe. Filene's Basement, after declaring bankruptcy, was revived by Macy's (NYSE: M) in 2015 as an online-only discount site.
In mid-January, however, The Limited declared bankruptcy and was subsequently purchased by private-equity firm Sycamore Partners. Just last month, The Limited products were made available for purchase once again on its own website, but whether it can remain viable is anybody's guess.
Mattel
Toymaker Mattel (NASDAQ: MAT) is reeling from the poor retail environment that caused Toys R Us to go bankrupt, as well as Hollywood's bust of a summer blockbuster season. So bad was its third-quarter earnings report that it ended up suspending its dividend, a step few companies take unless they're in truly dire straits.
Mattel just can't sell its dolls anymore. Worldwide sales of Barbie were down 7%, American Girl dolls were down 30%, and other girl dolls like Monster High and Polly Pocket were down 42%. Things haven't gone well for Mattel since Disney stripped it of the Frozen and Princess line of dolls and gave them to archrival Hasbro (NASDAQ: HAS) last year.
Hasbro may now be able to acquire its competitor at a low price. Unfortunately, that doesn't necessarily mean the Mattel name would live on; it's the toys and the games that have value, while the Mattel brand could be allowed to expire.
 
A woman photographs a wall of Barbie dolls in the Mattel display at the annual Toy Fair, February 14, 2010 in New York.   (Photo: STAN HONDA/AFP/Getty Images, This content is subject to copyright.)
J.C. Penney
The once venerable department store chain J.C. Penney (NYSE: JCP) is circling the drain right along with Sears. The retailer had briefly shown signs of a comeback, but its recently released third-quarter earnings report fueled speculation that all of the changes it made may have been for naught.
After being upended by efforts to drag the aged department store into the 21st century, J.C. Penney undid virtually all the new-era improvements that had been made, and the chain's finances appeared to have stabilized. However, amid a severe slump in sales, the company recently decided to "reset" its women's apparel department by liquidating much of the inventory. Given that this segment accounts for a quarter of J.C. Penney's revenue, that inventory dump did little to inspire confidence in the company's turnaround efforts.
Unlike Sears, which can dip into the deep pockets of its hedge fund chairman to stay afloat, J.C. Penney is bereft of benefactors. As Amazon.com positions itself to become the biggest apparel retailer in the market, the outcome for this shopping-mall mainstay looks bleak.
Bed Bath & Beyond
It was expected that when Linens n Things went bankrupt, Bed Bath & Beyond (NASDAQ: BBBY) would pick up the ball and keep running downfield. Instead, Amazon suddenly became a viable competitor to home goods retailers, even as mass merchandisers like Walmart, Costco, and Target expanded their selections.
Bed Bath & Beyond also made a major mistake in almost completely ignoring the online space. It wasn't until late in the game that it made a concerted effort to build up its e-commerce presence, and even then it got distracted, creating failed "flash sale" site One King's Lane and branching out into more categories that are far afield from its core competency.
In addition to Buybuy Baby, Christmas Tree Shops, Harmon Face Value, and Cost Plus World Market, it also owns Of a Kind, PersonalizationMall.com, Chef Central, Decorist, and Linen Holdings. And now there are more competitors encroaching on its territory, such as At Home, a sprawling home decor supercenter.
In the wake of its niche's upheaval, Bed Bath & Beyond may have made itself superfluous.
 
Sign at a Bed Bath & Beyond store on April 10, 2013 in Los Angeles, California.    (Photo: Kevork Djansezian/Getty Images, 2013 Getty Images)
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Hasbro, and Walt Disney. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
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