How Can A War In Europe Affects US Sales?
Russia’s invasion of Ukraine carries huge risks for a world economy that’s yet to fully recover from the pandemic shock. Supply chains that rattled the global economy through the pandemic are unleashing another shock as efforts to choke off trade with Russia strain resources ranging from fertilizer needed for crops and palladium for car-making, to oil that’s used to produce almost everything. Closeout buyers and surplus inventory buyers in the United States should be relatively unaffected, however, it is important to note we will see higher gas prices as a result of this conflict, leading to a decrease in consumer discretionary spending. U.S. Companies that run closeout websites, sell excess inventory, or deal in surplus inventory and excess stock will see changes in business.
In the span of just a few days, the global economic outlook has darkened while troops battled in Ukraine and unexpectedly potential ecomomic sanctions rocked Russia's economy and threatened to further fuel worldwide inflation. The price of oil, natural gas and other staples spiked immediately, and at the same time further disruption to supply chains still laboring from the pandemic, rose as the United States, Europe and their allies tightened the screws on Russia’s financial transactions. Closeout buyers in the United States rely on mistakes and over estimates of businesses that import too much inventory and need to get rid of dead stock. This can be done in a number of different ways including selling on closeout websites or sell surplus inventory to discount stores. Closeout buyers specialize in buying closeouts and other excess inventory that either does not sell or is available due to their business closing or shutting down a warehouse. It is necessary to sell excess inventory before it sits in the warehouse too long and becomes dead stock that nobody wants.
Russia has long been a relatively minor player in the global economy, accounting for just 1.7 percent of the worlds total output, despite its enormous energy exports. President Vladimir V. Putin has moved to further isolate it in recent years, building up a storehouse of foreign exchange reserves, reducing national debt and even banning cheese and other food imports from Europe. But while Mr. Putin has ignored a slate of international norms, he cannot ignore a modern and mammoth financial system that is largely controlled by governments and bankers outside his country. He has mobilized tens of thousands of his troops, and, in response, allied governments have mobilized their vast financial power.
Together, the invasion and the sanctions inject a huge dose of uncertainty and volatility into economic decision-making, heightening the risk to the global outlook. Closeout buyers in the United States deal with companies that liquidate inventory and this helps keep cash flow turning and inventory moving. Closeout websites and surplus inventory buyers play a crucial role in the supply chain which has been badly interrupted due to Covid-19. More companies have to sell dead stock because containers arrived late for the Holiday season and they have no choice but to sell excess inventory. Closeout brokers buy liquidated inventory of all kinds including surplus housewares, excess inventory of lawn and garden products,closeout toys, discontinued inventory leftover from promotions, sporting good closeouts, home décor closeouts and much more.
In a flurry of recent updates several Wall Street analysts and economists acknowledged that they had underestimated the extent of Russia’s invasion of Ukraine and the international response. With events rapidly piling up, assessments of the potential economic fallout ranged from the mild to the severe. Inflation was already a concern, running in the United States at the highest it has been since the 1980s. Now questions about how much more inflation might rise — and how the Federal Reserve and other central banks respond hovered over every scenario.
Closeout companies buy excess inventory that importers cannot sell. They may have imported too much or shut down their warehouse because they weren't doing enough business. Sometimes businesses have to sell merchandise because it is overstock and taking up valuable warehouse space. Other times they have a package change and don't want to carry old merchandise any longer. Also, companies sell bulk inventory when they liquidate Amazon FBA stores and close down Amazon businesses.
The chief of the World Bank has said that the war in Ukraine is a "economic catastrophe" for the world that will cut global economic growth. The fighting comes at a wrong time because inflation is already rising. The grim forecast comes at a time when oil prices are at its highest in more than seven years. The Brent crude - international benchmark for oil prices - is hovering above the $112 a barrel mark due to the Ukraine war. Countries, which are part of the European Union (EU), are expected to be hit badly. About 39 per cent of the EU's electricity comes from power stations that burn fossil fuels and Russia is the biggest source of that oil and gas. Also, there are fears that Russian President Vladimir Putin could cut the supply of gas to Europe in response to the sanctions imposed by the West.
As all this is happening 4,500 miles away from the United States, we are more closely connected than most can imagine. Economically, closeout brokers and excess inventory buyers in the United States are running businesses at a time when uncertainty is at it's highest level in years. Markets and closeout businesses do not like risk and consumers do not do well with price increases. Companies that liquidate merchandise often have thrifty customers looking for the best deals. Surplus buyers and other companies that sell bulk inventory may be faced with some challenges ahead.
Merchandise USA buys closeouts and overstock inventory for closeout websites and warehouse liquidation sales. We buy overstock inventory, discontinued merchandise and inventory liquidations.
