FAQ

General Questions

Q: What is inventory liquidation and how does it work?
A: Inventory liquidation is the process of converting excess, overstock, or slow-moving inventory into cash through specialized sales channels. SurplusReps connects your surplus inventory with our network of qualified buyers including distributors, retailers, exporters, and resellers who purchase goods at wholesale prices for resale in secondary markets.

Q: What types of inventory do you handle?
A: We work with a wide variety of inventory including:

New merchandise and overstock

Customer returns and refurbished items

End-of-life or discontinued products

Seasonal merchandise

Manufacturing surplus and raw materials

Electronics, consumer goods, apparel, industrial equipment, and more

Q: How quickly can I get cash for my inventory?
A: Timeline depends on your chosen service model:

Direct Purchase: 7-14 days from agreement to payment

Representation: 30-60 days average time to sale

Consignment/Drop-Ship: Ongoing payments as inventory sells

Q: What recovery rates can I expect?
A: Recovery rates vary by product type, condition, and market demand:

Direct Purchase: 15-35% of original wholesale value

Representation: 25-45% of original wholesale value

Consignment/Drop-Ship: 30-50% of original wholesale value

Service Models

Q: What’s the difference between your three service models?
A:

Representation: We market your inventory to buyers while you retain ownership. You pay commission only upon successful sale.

Direct Purchase: We buy your entire inventory outright for immediate cash payment with no ongoing involvement.

Consignment/Drop-Ship: Inventory stays at your location while we arrange sales and coordinate shipments as orders come in.

Q: Which service model is right for my situation?
A: Consider these factors:

Need immediate cash? Choose Direct Purchase

Want maximum recovery? Choose Representation or Consignment

Large quantities? Direct Purchase handles any volume

Specialized/high-value items? Consignment often yields best returns

Tight on warehouse space? Direct Purchase clears inventory fastest

Q: Do you charge upfront fees?
A: No. We never charge upfront fees. Our compensation comes from:

Representation: Commission percentage only upon successful sale

Direct Purchase: Profit margin built into purchase price

Consignment: No fees – we profit when you profit

Process & Logistics

Q: How do you determine the value of my inventory?
A: Our evaluation process includes:

Current market demand analysis

Competitive pricing research

Product condition assessment

Quantity and packaging evaluation

Historical sales data for similar items

Seasonal and trend factors

Q: Do I need to ship inventory to you?
A: It depends on the service model:

Direct Purchase: Yes, we arrange pickup/shipping after purchase

Representation: Usually yes, for marketing and distribution

Consignment/Drop-Ship: No, inventory can remain at your location

Q: Who handles shipping and logistics?
A: We coordinate all shipping arrangements including:

Freight carrier selection and scheduling

Packaging requirements and materials

Insurance and tracking

Customs documentation for international shipments

All logistics costs are factored into our pricing

Q: How do you ensure my inventory is handled properly?
A: We maintain strict handling protocols:

Bonded and insured transportation

Climate-controlled storage when needed

Detailed inventory tracking systems

Regular condition reports and updates

Secure facilities with 24/7 monitoring

Legal & Business

Q: How do you protect my brand reputation?
A: Brand protection is a core priority:

Controlled distribution through vetted buyers only

Geographic restrictions to avoid channel conflict

Non-disclosure agreements with all buyers

No unauthorized online marketplace sales

Detailed buyer qualification and monitoring

Q: Do you provide references from past clients?
A: Yes, we can provide references from similar businesses in your industry. All references are provided with client permission and maintain appropriate confidentiality.

Q: What documentation do you require?
A: Typical documentation includes:

Detailed inventory lists with SKUs and quantities

Original invoices or cost basis information

Product specifications and condition reports

Any relevant certifications (UL, CE, FDA, etc.)

Proof of ownership and right to sell

Q: Are there any product restrictions?
A: We cannot handle:

Hazardous materials or chemicals

Expired food, drugs, or medical devices

Recalled or banned products

Items requiring special licenses we don’t hold

Products with legal or patent disputes

Financial

Q: When and how do I get paid?
A: Payment terms vary by service:

Direct Purchase: Wire transfer or check within agreed timeframe (typically 7-14 days)

Representation: Payment within 5 business days of buyer’s payment to us

Consignment: Monthly payments as inventory sells

Q: Can you provide advance payments?
A: For qualified clients with established relationships, we may offer advance payments against future sales in our Representation program. Terms depend on inventory value, client creditworthiness, and product marketability.

Q: How do you calculate carrying costs?
A: Carrying costs typically include:

Cost of capital (6-12% annually)

Storage and warehousing (2-5% annually)

Insurance and handling (2-6% annually)

Risk of obsolescence/deterioration (6-12% annually)

Total: Usually 20-30% annually, up to 54-100% for non-moving inventory

Getting Started

Q: How do I get a quote for my inventory?
A: Contact us with:

Detailed inventory list

Product conditions and quantities

Current location and preferred timeline

Any special handling requirements

We’ll provide a preliminary assessment within 24-48 hours and a formal proposal within one week.

Q: What’s your minimum inventory value?
A: We work with inventory values from $10,000 to $10+ million. Smaller lots may be combined with other clients’ inventory for efficient processing.

Q: Do you sign confidentiality agreements?
A: Absolutely. We sign NDAs before reviewing any sensitive inventory information and maintain strict confidentiality throughout the process.

Q: How long have you been in business?
A: SurplusReps has been helping businesses liquidate excess inventory for over [X] years, with millions of dollars in successful transactions and hundreds of satisfied clients across multiple industries