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COVER STORY
Wholesalers Meet
Challenges Online
continued from page 87
like that, owner, John Fenwick, is confi dent about what his customers want. “All we do is create greeting cards,” he says. “We believe in mak- ing very saleable, fresh new product and offering it to consumers at the lowest price possible.” And even in a down economy, the company is doing just fi ne. “Consumers always need greeting cards,” says Fenwick. “They might not be able to afford the gift, but they always buy the card. Business is good because our product sells well, it’s made in America, and it’s offered at the best price in the market.” As a wholesaler, Fenwick feels that Stockwell Greetings offers
retailers some strong incentives. “We are a very reliable and steady source of greeting cards for our cus- tomers.” And he means it when he talks about price. Cards are 23 cents each, packed in six packs for $1.38. Orders over 150 packs get free freight, and retailers buying large orders can get volume discounts that go as low as 18 cents per card. The minimum order is $50. And of course, the company website is fully ecommerce equipped. Reliability is also a key selling
point for Liquidity Services, the par- ent company of
Liquidation.com. “You can trust us as a source for product,” says Patrick Landis, a director of marketing at the whole- saler. “We are a fully transparent wholesaler online.” What Landis is getting at is the company’s sta- tus as a publicly traded fi rm. Any
company that trades on a public stock exchange is required by law to disclose a deep set of data that privately owned companies keep tight to the chest. For example,
Liquidation.com’s 700 employ- ees moved $356 million in gross merchandise value last year. That includes company revenue as well as the value of goods that Liquida- tion sold on a consignment basis. The company takes a ten to 15 percent cut of those deals, and of course gets 100 percent of the sales value of goods it sells from its own warehouses. In 2009, the company reported actual revenue of $236 million, down 10.5 percent from 2008’s record $264 million. The company turned a profi t of $5.7 million in 2009, just about half what it earned in 2008.
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