Everything You Need To Know About Buying Closeouts.

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Closeout sale is a generic term referring to how you could get rid of surplus inventory that isn’t selling. Overstock buyers and closeout buyers have an entire industry dedicated to helping businesses get rid of unwanted inventory. The surplus inventory could comprise of many items, including closeout pet products, overstock of home goods and housewares, toys, sporting goods and even lawn and garden closeouts and other excess inventory.

Various reasons could trigger the need for closeout buyers to review your liquidation stock for sale, including closing down a business, products that have gone out of the market, too much inventory in stock, store returns, factory rejects, surplus inventory, etc. Whatever the reason, closeout buyers can help you get back a percentage of the capital invested in a product preventing you from experiencing a complete loss.

Regardless of the type of liquidation inventory you are getting rid of, whether it’s your surplus stock or your entire warehouse, there are different ways to get rid of too much inventory in stock and liquidate excess inventory.. Excess inventory refers to products that haven’t been sold but exceed the projected amount likely to be sold through regular distribution channels. Excess stock, also referred to as liquidation overstock, closeouts or unwanted inventory, can result from a lack of proper stock management or other reasons like canceled orders, inaccurate projections, or poor economy. In today's business environment most business owners have already dealt with liquidating overstock inventory at one time.

2020 and 2021 have witnessed a dip in the global economy, and businesses that have been affected are left in a challenging position. Such businesses lack the means to get rid of surplus stock effectively without getting help from overstock buyers and closeout liquidation companies that specialize in helping businesses get rid of unwanted stock. Consumer demands, market trends, and consumer behavior have also played a huge role in surplus stock and the amount of wholesale surplus inventory sitting in 3PL warehouses. We could help you get rid of any excess inventory and free your business up, leaving you to work on more important aspects of the business.

If you decide working with overstock buyers is the right thing for you, consider a simple Google search using terms like these: discontinued products, too much inventory in stock, shutting down warehouse, moving warehouses must liquidate inventory, closeouts, selling closeouts or closeout brokers. Any of these terms will help you find a reliable closeout company that can help you liquidate complete inventories in a single transaction. It is possible you will also be able to make arrangements to have your closeouts exported to another country, or sold in a manner that will not interfere with your regular distribution.

When contacting inventory liquidators, it is important to first know the value of your merchandise and understand what is and is not an acceptable sale price. Now this may be a function of how long the merchandise has been sitting in your warehouse, how costly it is to sit there, and how much space it is taking up in the warehouse – especially if you are shutting down your warehouse or going out of business by the end of the year. Also, most buyers aren’t going to pick up the inventory after liquidation so consider the cost of shipping or delivering inventory to a closeout buyer. Finally, liquidating inventory may come with a hit to your brand. Customers are suspicious of businesses that are willing to part with inventory for such steep discounts. A good way to “keep it in the family” so to speak is by giving away your excess products to customers. Rather than sell the closeout products, giveaways are a good way to incentivize customers to keep coming back.

You can run a promotion where every 10th customer who buys something gets a free product. You can also offer a “buy one, get one free” kind of liquidation sale. Excess stock from previous seasons and years is particularly expensive to hold on to because you may need to move out excess inventory to make room for new products. For higher-priced inventory, you may invite customers to enter a raffle with their email address or phone number, allowing you to build your marketing lists and clear out some inventory at the same time. Another option is to give away excess products to influencers or thought leaders in your industry. They may be willing to review or simply use your product, giving you some free advertising.Excess inventory happens. Just about every business will be forced to deal with selling closeouts and dead inventory — and how to get rid of it without taking a financial hit — at some point. Simply keeping it becomes a drain on your business and may even force you to downsize your warehouse and even shut down your business for good. You should be strategic and creative with how you try to sell that inventory to customers. But, ultimately, if it becomes clear you can’t sell it, there are still productive ways to put it to use.

Closeout wholesalers come in many different shapes and sizes. Some are companies that only buy closeouts for resale out of the country. Some buy closeouts only in certain categories – for example they may only be interested in buying electronics for gadgets. Other buyers of excess inventory and closeouts are only looking for name brand closeouts that can easily be sold to retailers in the U.S. So it is important to know who are are dealing with before you get too involved with any companies that specialize in buying and selling closeouts. Liquidation companies are generally well funded, but it is always a good idea to discuss the terms of any sale in advance to avoid any surprises.

You should also know that when you sell closeouts and clear stock from your warehouse or get rid of unwanted or dead inventory, you will likely only recoup a small percentage of the original cost. The reason for this is closeout buyers are often taking a chance by buying your inventory. If you couldn't sell it then there is a good chance they may not be able to get rid of it either, so anyone trying to sell dead stock that you couldn't get rid of is going to want to buy it cheap. If you think you are going to be able to get your cost out of it, think this through because you are mistaken. If a buyer would be willing to pay regular cost, they would just go out and import their own products and get exactly what they want and how they want it. Getting rid of old stock isn't easy and it can mean taking a hit to both your wallet and your ego. Let's fact it, nobody wants to admit they made a big mistake of having bought way too much inventory or even having paid too high a price. But nobody is perfect and we all get stuck with poor sales and inactive inventory.

It is always best to liquidate inventory sooner rather than later, and sometimes your first loss is your best loss. Buyers for old inventory will expect you to take a loss in order for them to help you out. Now, if you are willing to sell closeouts in small quantities over a longer period of time, you may be able to get more money for them. But it is always a trade off between getting rid of everything at once, or letting it sit in the warehouse and having slow sales for more money. You can try closeout websites that only sell overstock inventory and discontinued products on the cheap, but they won't be able to truckloads. It is more likely they will only buy pallets of closeouts or less than full pallets. If you need bulk inventory buyers who can buy closeouts of entire warehouses or entire inventories, you will have to be priced aggressively.

If you have a retail business and are trying to move slow selling products, if one product is n’t moving, try pairing it with one that people can’t stop buying. According to a study by Software Advice, 90% of stores use bundling as a technique to sell more of a certain product. If you can, group certain complementary products together in your store and offer them at a slightly lower price than if they were purchased separately. That way, you can sell slow-moving products without taking a hit on the profits.

For instance, if surge protectors are one of your most popular items, but you can’t seem to sell your travel adapters, bundle them together for a special price. You don’t have to bundle your excess inventory with complementary products, however. Sometimes, simply seeing a bargain is enough to get somebody to purchase. Offering a slow-moving product as a discounted up sell to anyone who is already making a purchase may get a few bites. It's all about getting dead stock to sell without having to deal with liquidating inventory or having a liquidation sale to sell overstock inventory.

Merchandise USA is an inventory liquidator specializing in buying and selling closeouts. We have been in business since 1984 and are one of the most reputable closeout buyers in the industry. We buy and sell closeouts of toys, housewares, sporting goods, home goods and lawn and garden products. If you want to know where to sell closeouts you are in the right place. Overstock inventory buyers come in all shapes and sizes, but Merchandise USA is one of the largest surplus liquidators in the U.S.