What Do Closeout Companies Do With Their Excess Inventory?

Companies that only buy overstock liquidation and sell excess inventory still have inventory problems. Not everything they buy is a winner, and even a closeout warehouse makes mistakes. This is made abundantly clear by the number of closeout websites available to help sell excess inventory and help get rid of any overstock liquidation companies may have.

One of the things closeout websites or closeout distributors do to get rid of extra merchandise is donate. You can often donate at the full value of the inventory and get a tax write-off for the full amount. This is great if you are only able to recoup 10 cents on the dollar from a closeout warehouse, because in this case an overstock liquidation for cash would actually result in a lower recovery that a donation at full value.

Another thing closeout websites do is promote flash sales and offer deep discounts to get rid of inventory. This can be successful when you have an online business and need to sell excess inventory. Most flash sales are offered on a specific date for only a short period of time. It is a great way to have an overstock liquidation sale because it gets customers excited about buying and generates sales quickly. Sometimes closeout distributors have liquidation sales to create more warehouse space and generate cash.

If you have a closeout warehouse or a brick and mortar store you may consider having a tent sale or a parking lot sale as a way to sell excess inventory. These sales can be an effective way to move product that isn’t selling and it also drives in new business because people are attracted to outdoor warehouse sales. Having too much dead inventory in the store can be bad for business because the customers will only continue coming back if you continue to offer them new deals and fresh closeouts.

Closeout companies don’t always buy right. Sometimes they make mistakes by purchasing the wrong items or buying too many of the right item. In either case, they need a way to get rid of excess inventory that isn’t selling. The truth is that even liquidators need liquidators to help get rid of dead inventory and sell excess inventory in order to raise cash to buy fresh new merchandise.