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Everybody knows that you can get great deals when you go shopping at Costco, but did you know that you can get even greater bargains when you shop at a Costco liquidator? Most likely, you never even realized that Costco had liquidators that they use on a regular basis – in fact you might think that a big business like Costco wholesale would handle all their stock through their distributions channels.

So how does a Costco liquidator work? Well, in fact Costco liquidators work on a store by store basis. Costco actually has a large distribution network, but they don’t want to go through all the trouble of returning overstocked products back to their warehouses, so this is where Costco liquidators come in to play.

Large stores like Costco sometime overstock items because there wasn’t as much demand as they had initially thought, or the demand in a particular area may not reflect that in the rest of the country. So sometimes Costco are left with leftover items that they must get rid of. Each Costco store has an agreement with a liquidator, and sometimes a liquidator will have agreements with more than one Costco wholesale store.

Costco need to get rid of items that they have overstocked because they take up valuable shelf and floor space. The retailer has such a high volume of customers that they need to ensure that the products that they have in store have a high turnover and are making a good profit – this is how they manage to keep their prices so low.

So the Costco liquidator comes and takes the merchandise from the store in bulk – they do this at very low cost per item, and often there will be more than one type of item in any particular lot. All the merchandise are then removed from the store, and are marked as liquidations. Usually this is just a small mark beside the barcode or serial number, which will stop people purchasing at below cost and trying to return to Costco for a refund.

Once the liquidated stock has been processed, the Costco liquidator is able to have it for sale to their customers. These items may be offered individually on a drop shipping basis, or they may be sold in bulk. For you as a business person, you have to decide where and how you are going to be selling your products as this can make a difference to which purchases are suitable for you.

If you are in the business of selling online or via catalogues, then the drop shipping model can work very well for you, as you won’t need to harbor any stock and you can offer a wider selection of goods. However, if you have a physical retail store, its better to make bulk purchases from your Costco liquidator so that you can have stock available for your customers to immediately purchase and take away.

Investigate whether your wholesale distributor supplies Costco liquidated stock so you can benefit from this great opportunity.