MC011 Question
Hi Everyone,
I am a clothing reseller. Lately, I found a great reputable liquidation company that I am happy purchasing from that supplies me with bulk Luxury liquidation clothing (Nike, Bebe, CeCe, Sweaty Betty) that are NEW WITH TAGS. However, the boxes that I am getting are unmanifested. I am not really understanding the MC011. Would listing 100+ of these types of items trigger the MC011? I've saw cases where an invoice wasn't enough since it wasn't manifested. How would you go about safely listing these types of items? Thanks for your help!
19 comments
kh-shawn
·5 months agoHi everyone,
Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.
Thank you for understanding.
chapeau-noir
·3 years agoI've purchased several liquidation lots and they have never come with a manifest. They've also been mostly unsalable junk or sizes and brands that are so saturated that they'll only sell for pennies, so I no longer bother - I made my money back and that was about it.
Liquidation lots can consist of a lot of different types of clothing - shelf pulls, returns, overages, etc., but mostly they're stuff that no one wanted.*
*So you need to be careful with your choice of liquidator. I wouldn't touch Nike, though.
stainlessenginecovers
·3 years agoAnything 'Nike' being sold by 'liquidators' are fake. Nike is VERY Protective of their brand. Nike has their OWN online website stores as well as 'outlet' stores and agreements with ANY distributor and or retailer that any Nike Products come BACK to Nike for them to 'distribute' to their 'outlet centers'.
This is just some of the FAQ from Nike Website:
How does Nike select authorized Marketplace Partners?
Applications are evaluated to meet rigorous standards, our distribution is extremely selective, and only a small number of new Marketplace Partners are appointed each year. There is no specific business model or distribution requirement for applications, however you must have a valid business license (issued through your local government) for your application to be considered.
I want to sell online, do I need to submit an application?
Yes, it’s the same process. Please note, applications to sell Nike product on a digital marketplace such as Amazon or eBay will not be considered.
djvp53
·3 years agoHow do you determine they are a "great reputable" liquidation company? One of the things that might make them great is providing a detailed manifest that lists the specific items they are selling to you. If they are not providing such a detailed manifest, it might be because they don't want a record of selling goods when they, themselves, can't substantiate that the goods are authentic. That is, if they are knowingly selling counterfeit goods, they wouldn't want to leave a paper trail that says so. So I ask again, how do you know they are great and reputable? They don't sound reputable to me.
thedoubletake
OP3 years agoHi! Thank you for your answer. The company I am using is a company that has been in business for over 12 years. They have heavily advertised on various social media outlets, have been reviewed heavily by other resellers on platforms such as Youtube, and have excellent reviews with the BBB. They offer small boxes, pallets, and even truckloads of merchandise so I would assume since they are a larger supplier that manifest would be extra work, especially since they sell at high volumes.
toysaver
·3 years agoI don't recommend deferring major financial decisions to YouTube.
retro_entertainment_collectibles
·3 years agoIts very simple, simply check with the manufacturer's or even simply ask the supplier for credentials as to being an authorized surplus, liquidator etc from said manufactures. BBB reviews mean zero, its a paper tiger.
Regardless of any of the above be they authorized or not doesn't mean you are. That's just the lay of the land and that's why I said, its really best to get into the companies themselves... Get into their liquidation stream, they all have authorized reclamation/liquidators, every one of them and the one you're doing business with might be one of them.
eBay reserves the right to terminate any account for any reason they see fit. In the case of especially high value brands the company is under pressure by the manufacturers to stop any unauthorized resellers regardless of sourcing.
From the sound of it the company you're dealing with or want to is a retail liquidator meaning they take in product unsold in retail, unsold in warehouses and likely high volume retail returns. Walmarts leg of this is called Jacobs Trading. These places sell "as is" and usually are not authorized by any manufacturer entities, that's on the buyer or resellers. The operations that will sell anything, they dont much care about their sourcing will sell to anyone. The operations that tend work with larger retail such as Macy's, Penny's, Marshalls etc want your information, state issued reseller certificate, filing numbers, LLC, DBA on and on data and often where items are going to be resold. This is due to delisting processes, just because say these shirts have been delisted and Macy's has taken them off retail floors does not mean that Penny's has as Penny's Net Terms of product acquisition differ.
For example say Macys does 30 NET 10 yet Pennys is doing 60 NET 15 as terms of consignment. Products delisted Macy's has taken off retail/Internet that go back to the distributor so as they can get their credit for unsold product. Penny's however still has it on their retail floors and online as they've still 20 days under their terms. So you obtaining product and selling it a retail store or perhaps online at reduced pricing puts Penny's at disadvantage yet Penny's has contractual arrangement under said Terms.
Back in the day we went through this regularly with delisted PC items which we get direct from authorized liquidation venues, publisher direct warehousing etc. I'll cite an example, company called UBISoft. UBISoft depending on actual software titles placed considerable limitation on us even though we were an authorized reseller buying inventory in authorized channels.
We could ship NO UBISoft titles outside US Borders, not a one be it current or delisted. We could ONLY sell current items within the region the company defined (Upstate NY in their case). We could sell NO current titles online at all, anyplace even our own webstores. Recently delisted product (no longer current, 30 days delisted) we could acquire but could not resell ANYPLACE for 90 days thus ensuring other entities able to compete and fulfill their Net Terms. That said, of course, we see other sellers online selling the stuff when we could not and UBISoft's legal contractor eventually catch up with them and they're days at Amazon or elsewhere come to an abrupt and permanent end.
We'd similar problems with Mattel inc. who bought an entity called The Learning Company (TLC) under sketchy pretenses. We place an order with TLC/Mindscape and all of a sudden twice what we order arrive. Call em', tell us you're authorized, good reseller, keep it. OK! Sweet! They were emptying warehouses to make the counts of unsold inventories looking much nicer for Mattel to acquire them.
One day knock on the door, it's a process server along with two cops and a search warrant. What a mess! Process server was subcontract to local firm from Mattels law arm. All acquisition records of product be in TLC or not they took and all product purchased via TLC we had to gather up, confiscated, about $14,000 worth as I recall, they literally had to bring in a box truck.
See Mattel acquired the company and Mattels shareholders took a wallop and I do mean WALLOP when the truth came out about TLC's doings. Without going into a play by play as it took near 9 months get things resolved we were exonerated. However, the judge presiding over things decided to require we provide ALL proof's of authorizations for every single publisher/distributorship acquisition we'd made over YEARS. CRAZY! So here we are having to explain to UBISoft, Electronic Arts, Ingram Micro, Navarre Inc., Take 2 Interactive on and on the entire MESS over and over, like I think it was 48 different sourcing points the entire MESS yet CANNOT discuss any details of the actual case, ours or Mattels. Know how much fun that was? Terrible just terrible and doesn't exactly bode trust ya know? It was long ago but as I recall there were perhaps eight or ten in our supply chain that simply cut us off. It was only after it all was said and done that we were able to reestablish with them as at that point the entire mess was public. Man it sucked and wasn't like oh, deal with the court / entities in a week's time and done. Oh no... Be there this court date, that court date, supply more or this, then that court date it was just CRAZY. All said and done, Mattel authorized us as a reseller albeit we were an authorized TLC reseller but that went out window when Mattel acquired TLC, not like we were informed? We never got that $14,000 some odd back inventory either nor were we compensated, it was a "Stand in line" behind the likes of Staples, CompUSA and others.
I've said this in posts before when it comes to how all this stuff REALLY works vs what the consumer and perhaps would be seller thinks or see's, its ever so much more complex. They just see eBay or Amazon as being mean to them, not explaining things, acting arbitrarily, "They're against me!" when in fact they've no clue how the world of commerce hard goods actually works! It's like, "Oh Walmart has so much money look at all thing they buy to resell! Oh my gosh!" Reality is perhaps 2% of what sits on a Walmart floor did Walmart actually buy, lock stock and barrel. The other 98% is consign under Net Terms.
But as I said, regardless of ANY legitimacy eBay or Amazon for that matter can and do terminate for any reason at any time even if product truly is legit. If they should receive claim from any manufacturer, say Nike to produce proof's of legitimacy towards products they manufacture its on you to provide them. If Nike's subcontract (likely) lawfirm(s) file against you its up to you to prove legitimacy of what you're selling.
In the end if you care about you then it's best make sure all you're "T's" are crossed and you're "i's" dotted as nobody else can do that for you.
djvp53
·3 years agoHow do you know they've been in business for 12 years? Anyone can advertise on social media. From a credibility standpoint, to me, that's a demerit. The two groups of youtubers I wouldn't trust are (1) the ones who pretend to have bought Lamborghinis with their imaginary money and (2) all the other ones.
You might be right that they don't want to offer manifests because of all the work that would be involved. Someone above suggested that perhaps they are involved in retail store liquidations. If so, perhaps their goods are legitimate. Of course, doing retail liquidations would be a great cover for moving huge volumes of counterfeit goods to innocent 3rd party resellers who could get caught holding the bag. Retail liquidators might also be unknowingly liquidating goods from shady stores that were selling counterfeits. How do you know which retailers are supplying their goods? How could you tell if what you got was legitimate?
I'm asking in part because I don't know the answers to these questions myself but my uncertainty would give me pause.
retro_entertainment_collectibles
·3 years agoToochie'! Oops, touche'.
I've been trying figure out how these youTube adventurer's going into old houses, mansions on and on making videos, capitalizing on them is not criminal trespassing but hey, I'm just an "Onmor' " (that's Moron in Moon speak).
Always best and actually considerably cheaper to get into the actual delisting channels. Back in the day when software was actually a term people associated with computers .vs. plushie blankets lots of middle man op's existed. Sell ya' titles at $8-$10 when they acquired them no different than we did except their price be $2-$4 a unit.
Like gee, "If this clothing place sell me a pallet of this stuff for $400 how much is it costing them?"
Probably in the area of $100.
If an entity get into just ONE legitimate liquidator that'll open the doors to another, they open the doors to more. We'd gotten to the point at "their discretion" we could get into the warehousing/backend of Circuit City, Fry's, EB Games, Media Play thus saving all parties significant amounts of money from having to ship all this unsold or return product back to distributorships. Save big!
Manufacturer-> Warehousing or distributorship -> Middle Man -> Third Party Reseller is ever so traditional as folks dont do the work to be Manufacturer-> Warehousing or Distributorship -> Third Party Reseller and the amount of money is VERY VERY significant. In most middle man enterprise they are at the VERY LEAST doubling their money, usually more like 300-500% or they just can't stay in business with all the overhead.
So we've got 800 master cases of T-Shirts to get rid of, 24 to a case. $1.50 a shirt to the third party reseller, wow what a deal! What the reseller doesn't see is the middle man paid .25 cents a shirt or less. They just can't make enough money to operate if their margins are not EXACTLY or MORE than it takes for that third party to operate. You hear folks say, "Well it's all about volume" and that true, they buy good in mass and the volume out the door is mass but the margins necessary to stay in business are not at all different!
femmefan1946
·3 years agoThe Better Business Bureau is a franchised private company. It was set up to promote trust in local businesses.
It is not a part of the justice system.
It does mediate when there are business/consumer problems.
Businesses pay a fee to belong to the BBB. (We were members for decades before we retired and closed our shop.)
https://www.investopedia.com/what-is-the-better-business-bureau-5024818
retro_entertainment_collectibles
·3 years agoWe were as well, I will admit that they can be helpful. We'd a few chargebacks back in the day whereby Cardservice International was quite pleased about our BBB rating and responsiveness but other than that, pretty much paper tiger.
ron-191651
·5 months agoim looking for a good company can you share
pjcdn2005
·3 years agoPerhaps someone who has bought large groups of item from liquidators could confirm whether or not these items usually come with some sort of itemized receipt? I was under the impression that when something that when someone wanted to purchase a pallet or large lot from a liquidator they were told that there were xx items of womens clothing, xx accessories, etc. but that nothing specific was listed. If that's the case, I would be surprised if the liquidator provides a more detailed invoice.
ckimodog
·3 years ago@thedoubletake
Some brands require authorized vendors to sell their items. I would check into it just to make sure & cover my bases.
thedoubletake
OP3 years agoThanks for replying. Where would be a good start to look into this? I've done some research into the company and everything seems to look legit but I'm not sure if I am covering myself with the proper channels since they, themselves, are internet websites.
ron-191651
·5 months agodo you know any honest and legit sellers
toysaver
·3 years agoalready sounds counterfeit to me...
retro_entertainment_collectibles
·3 years agoNot necessarily, there are places that take in legit product like Pawn Shop's but without being an authorized reseller of some lines of product those entities can and do act usually via subcontract law firms. With pawn shops never know either really, we'd one months back where the proprietor got a 4 year sentence and has to pay back a whopping 3 million dollars.
These days have to watch everything even association. Say I find a place selling clothes and they've got high value brands. Not that I sell clothing but let's I'm scared to sell that stuff but they sell other stuff, Columbia or whatever brands so I'm gonna sell that, after all that's not a brand that go after me lets say on eBay. Odds are when the supplier goes down for selling whatever, illegit Nike items... I'm going down right with them by association even though I was selling Columbia items.
"But I never bought any Nike items from them you're honor!"
Doesn't matter, doesn't even matter if the Columbia items actually WERE legit. Buying stuff from a criminal enterprise and reselling it whether product was legit or does not absolve one of their culpability in buying from a criminal enterprise. It's not like cops, district attorneys, state attorney generals dont follow the food chain. Be like saying "Oh law only pursues those who steal the actual cars not those who part them out and resell the parts." They go after the whole food chain.
retro_entertainment_collectibles
·3 years agoThey'll want know who and where the merchandise is coming from. With tags means nothing if an operation counterfeit clothes, shoes etc they've no problem counterfeiting tags. If you want find out if the company you're looking at working with is reputable then you contact, Nike, Bebe, CeCe etc and get authorized. If the companies legit all is good, if not they'll be spending time in prison.