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If you are a smart and efficient business owner, you probably already know that you need to handle the issue of excess merchandise. You probably do so by letting a closeout company purchase your overstock inventory.
Something you might not know is that some closeout companies actually provide third party logistics. Specifically, many of them are able to provide additional warehousing for your needs.
Since you already have a relationship with them and they have a distribution channel in place, it only makes sense that you would want to be able to have higher stock for items that are selling well, even when your own warehouse runs out of space.
This is why we suggest that if your current closeout company partner doesn’t provide warehousing services, you may consider seeking new one. And if you have yet to start using a closeout company, this would be a great criterion to use when choosing a closeout company.
Now obviously, this will depend on your particular situation and your particular priorities. You will have to look at all the different closeout companies who carry your type of product, and determine if they are buyers for you.
It is also possible that you are in a business where your own warehouse can handle everything today; however you must plan ahead. Maybe you don’t need additional warehousing now, but could need it at short notice at some time in the future. In that case, it would be a good option to have in mind your choice of a 3rd party logistics warehouse.