When it comes to securing cheap and profitable products, bankrupt stock UK is one of the best opportunities for individual resellers and small businesses alike. There are thousands of companies in the UK that are in insolvency or cash flow trouble, which means they can only sell stock at well below its retail value. If you’re a good buyer, there are loads of bargains available from electronics and clothing to furniture and general merchandise.
In this guide we will cover what bankrupt stock is, why it is in so much demand, how you can buy it safely, and how you can resell it to achieve the profit you need. In my opinion, if you want to start or help expand your reselling business, bankrupt stock UK is a sensible place to begin.
What is Bankrupt Stock UK?
Bankrupt stock UK refers to stock available for sale when a business either closes down, goes bankrupt, or goes into liquidation. In such a case the stock is usually sold at such a great price to recoup some cash to pay the creditors and recover any assets.
Bankrupt stock UK is usually desirable stock when compared to standard retail clearance stock which is normally a lower quality and so much of the time with bankrupted stock you get branded goods like electronic items, homewares, clothing and so many other product lines immediately available to buy at a discount.
Difference Between Bankrupt Stock and Other Forms of Clearance
Bankrupt Stock – Available for sale due to the insolvency or bankruptcy of a company.
Surplus Inventory – Businesses want to sell the surplus inside their stores so they can get rid of the excess stock quickly. (See here: Surplus Inventory Liquidation)
Warehouse Clearances – Stock available for sale when businesses offer up their warehouse clearances or are swapping out warehouses (See here: Warehouse Clearance)
Job Lots – discontinued mixed bulk lots of product lines put together and sold as a job lot (general container lots, but sold as job lots) (Job Lots UK)
Bulk Liquidation Pallets – stock comes in as been palletized and is sold in bulk at wholesale prices (Bulk Liquidation Pallets)
Knowing the differences helps a buyer navigate to the product options that fit their model and budget.
4 Reasons to Buy Bankrupt Stock in the UK!
The jig is up! Bankrupt stock UK has exploded in popularity in recent years due to the rise of e-commerce and reselling platforms. Here are some great reasons to buy bankrupt stock:
1. Huge Discounts on Quality Products
Bankrupt stock tends to be sold for a small percentage of its original retail value. Businesses and resellers can often obtain branded products for pennies on the pound.
2. High Margins for Resellers
Whether you’re selling on eBay, Amazon, Facebook Marketplace or your own e-commerce store there is often potential for a huge margin. Buying stock at a low price then selling it at competitive prices leads to excellent ROI.
3. Eco-Friendly & Sustainable
Buying and reselling bankrupt stock reduces waste and enhances sustainability in the provision of goods. Goods are reused and redistributed rather than put in a landfill.
4. Access to Branded Products
Many bankrupt businesses will stock branded items. This importantly enables resellers to provide products that come with terrific brand trust and product quality.
Kinds of Bankrupt Stock UK Available
The range of bankrupt stock UK makes it appealing to resellers of all different niches. Users will commonly find bankrupt stock items in the following categories.
1. Electronics and Gadgets
Electronics such as smartphones, laptops, small appliances, and accessories are one of the most popular bankrupt stock items.
2. Fashion and Clothing
Clothing, shoes, and accessories from bankrupt fashion retailers are especially popular with e-commerce sellers.
3. Homeware and Furniture
It is common for bargain hunters to look for products such as furniture, kitchenware and household items from bankrupt or liquidated companies.
4. Seasonal and Holiday Stock
Items like Christmas decorations, summer merchandise, and seasonal items are available very cheap after a company goes bankrupt.
5. Wholesale Mixed Pallets
Buyers also have the option to buy lots of mixed pallets depending on the suppliers.
Where to get hold of insolvency stock
When looking to buy insolvency stock, sourcing reliable suppliers is key to success. These are the main forms of where you can find insolvency stock –
1. Online Liquidation Marketplaces
Sites like Clearance Giant offer great access to square – on purchasing insolvency stock in the U.K.
2. Auction Houses
The usual auction houses don’t provide insolvency stock, but there are some specialized auctioneers who will be selling assets as a result of a liquidation or bankruptcy.
3. Buying insolvency stock directly from administrators
In the event a company enters insolvency, administrators might sell stock directly to wholesalers or bulk buyers, so it makes sense to reach out to administrators for purchases.
4. Buying from wholesale liquidation stock companies
Most wholesale companies buy insolvency stock in bulk and sell the stock in smaller lots for resellers, so you will find plenty of reputable sellers with good selections of insolvency stock.
Tips for Buying Insolvency Stock UK Safely
While it was never going to be easy to spend money on insolvency stock, and produce a profit, you can help yourself by taking these smart steps before you purchase:
1. Check the suppliers reputation
It goes without saying that you should check and double check a supplier’s reputation. There are trusted sources out there such as Clearance Giant.
2. Find out why they have stock from bankrupt companies.
When purchasing insolvency stock, it is worth knowing the condition of the stock before purchase. When buying insolvency stock it can include brand new, graded stock or even customer returns.
3. Be aware of pricing models
Some suppliers will sell per pallet, some per unit or you can buy in job lots.
4. Buy small then scale up
If you are new to the market, it makes sense to begin with a small lot, then, when you are confident to scale to larger quantities.
5. Research where to sell your stock
You should be conducting research to know if there is a demand for your purchases on platforms
Selling Bankrupt Stock UK for Profit
Purchasing is just half the battle- selling is where the fun (and profit) begins.
The following strategies will increase your returns when selling bankrupt stock UK.
1. Online Marketplaces
- eBay
- Amazon
- Depop
- Gumtree
- Facebook Market Place
These are often the easiest sell points for sellers at any time given their accessibility and traffic from deal seekers.
2. Own Online Store.
Setting up a Shopify or WooCommerce store gives you control over branding, customer loyalty and pricing.
3. Local Markets and Shops.
Setting up a pop-up shop, selling in a flea market or local wholesale store will also allow bankrupt stock to be sold in your community.
4. Niche Reselling
By operating in a niche e.g. fashion;, electronics; furniture; you will gain expertise and develop a loyal following to your niche.
Evaluating Bankrupt Stock UK Against Other Liquidation Types.
When considering bankrupt stock UK you should evaluate it against all other types of liquidation:
- Bankrupt Stock: inventory being disposed of because the business is insolvent.
- Warehouse Clearance: inventory being disposed of to allow for use of the warehouse space.
- Surplus Inventory: redundancy stock bought from suppliers.
- Bulk Pallets: pre-packed lots (usually bulk quantities) that are pitched at wholesalers.
All liquidation options have advantages but in general bankrupt stock will generally provide the largest markdowns.
Challenges Inherent in Buying Bankrupt Stock UK.
While there is the potential for large profits there are challenges that come with all bankrupt stock purchases.
- The stock can sell through quickly due to high demand.
- Stock levels can fluctuate based on orders/enquiries.
- Conditions of products can vary significantly.
- Limited warranties and or returns.
- Limited storage .
Conclusion:
When it comes to investing in bankrupt stock UK, there are few better strategies for resellers and entrepreneurs looking to maximize their profits without significant upfront investment. There are endless possibilities of products to sell as part of this model, ranging from electronics and clothing to furniture and job lots, if you understand how to source the product and how you will dispose of the stock.
By knowing your market, qualifying your suppliers, and utilizing the correct sales channels, you can build a reselling business that has the potential to be sustainable. Whether you are new to wholesaling stock or are an experienced wholesaler, bankrupt stock provides a mechanism for acquiring product at lower prices, potentially maximizing your profit margins in the process.
