Should I Deal With A Closeout Broker Or Only Sell Direct To Overstock Buyers?

overstock buyers for closeouts

There are many different ways to get rid of inventory and sell excess inventory. But there is a fundamental question you must answer before getting started, and that is this. When looking for a buyers for closeouts and buyers for surplus inventory, do you want to try to sell it direct or do you want to work with a closeout broker? There are pros and cons of working with a closeout company, and we are listing a few of them here to help you with your decision.

Pro. Closeout companies that specialize in buying overstock and excess inventory know exactly what to do. They can guide you through the closeout process and help you find the fastest way to get the most for your closeouts. They are typically experienced buyers for surplus of all kinds and they know what products are worth and where they can be sold. They are pros who know how to sell excess inventory.

Con. You won’t get as much money when working with a closeout distributor because they need to make money on the transactions. You can figure it will cost you an additional 20% to 30% if you choose to sell excess inventory to a wholesale distributor. You will be able to get rid of inventory either way, but this is a price you may pay for the convenience of working with a professional closeout broker.

Pro. When dealing with a company that specializes in buying and selling closeouts, they will probably be able to take the entire inventory off your hands in one fell swoop. These companies are accustomed to purchasing large deals of surplus inventory from importers and distributors, so it is not uncommon for them to make a bulk offer to take all of your closeouts. Buyers for surplus are generally interested in large deals for wholesale purposes and they can help you to get rid of inventory in bulk.

Con. You can control where the inventory goes. When you get rid of inventory at a loss, the last thing you want is for the inventory to get sold to one of your regular customers, or show up in your regular market. If you do the sale yourself, you can choose exactly who to sell to and where to distribute your closeouts. This is a huge advantage over selling off the inventory to a closeout broker who may distribute it in any way they choose.

Pro. Closeout buyers who specialize in this field will generally make arrangements to pickup the inventory quickly and pay you right away. It is a known fact that companies specializing in closeouts may not make the highest offers. In an effort to help ease some of the pain of getting rid of inventory cheap, they will do their best to work with you on shipping and fast payments.

Con. If you want to sell direct to a retail customer or end user, you may have to put a lot more legwork into making a deal. You might spend more time making cold calls, sending our samples, and investing more of your time into finding buyers for surplus and overstock merchandise. A similar comparison would be selling a used car on the open market or trading in with a car dealer; there are advantages and disadvantages to both and the right approach depends on your personal situation.