Is This A Good Time To Start A New Closeout Business?
The past couple of years came with their own share of problems. If there is one thing to learn from living through pandemics and lockdowns, it’s that a lot can change in a year. Many entrepreneurs started closeout websites and businesses selling wholesale closeouts last January with high hopes and expectations for their businesses. However, many of those expectations went downhill as the year progressed. As with human nature, life moves on no matter what, so even though we were stuck at home for most of 2020, many businesses found ways to stay afloat. Even with supply chain issues and inventory disruptions, there was a need to sell excess inventory due to the slowing economy early on. Even as the economy rebounded, businesses weren't selling everything and still had to work with closeout buyers to sell dead stock.
Prospective entrepreneurs may be hesitant to start a new business this year because they feel the customer base will be poor. If you are thinking of starting a liquidation company that sells closeouts to overstock buyers and closeout websites, this may be a good time to do it. Yes, the world is going through a pandemic that has impacted many individuals' spending habits. Keep in mind that in any business, the first year is not usually a bed of roses, even if it doesn't take place during a pandemic. You’d still need to put in the work regardless. However, you may find it easier in 2021 as there are already customers who need your product or services. There is always a desire for businesses to sell excess inventory no matter what the economic climate. When times are good they have new products arriving and need space in the warehouse so they need to sell dead stock and obsolete inventory. Likewise, when times are bad and the economy is in a recession, businesses look for companies to buy overstock so they can generate cash flow.
The most important thing is to start with brand awareness and steadily build up a strong customer base of closeout buyers looking for discontinued merchandise. Many customers have been displaced, either because the companies they are loyal to shut down or because they have been temporarily closed due to the lockdowns. You just need to identify potential leads that need your products and services, build a relationship with them and watch those leads turn into paying customers where you can sell your dead stock and liquidation inventory.
As we approach the end of 2021, there is bound to be a lot of uncertainty after the way 2020 turned out. The ripple effects of the events of last year (lockdowns, supply chain disruptions, consumer demand) will still be felt for years to come, and it's normal to feel as though the new year is not an ideal time to start a new closeout or liquidation business. However, you may already have all the resources you need for your business to succeed, and despite the pandemic, you can still start a thriving liquidation company in 2021. Closeout websites flourished this year, and some liquidation companies selling closeouts had their best years in the history of their companies. Now, there is no guarantee you will be successful at selling closeouts but there is definitely opportunity to do well and there are plenty of customers looking for pallet deals, closeout truckloads, obsolete inventory at a discount and liquidation stock. If you are willing to put in the time and long hours to do what is necessary to build a closeout business, you will find there are always closeout buyers and closeout wholesalers with which you can do deals.
Whatever motivates someone to explore entrepreneurship, it’s important to remember that this is a long journey. Success requires developing new habits, engaging in continuing education on your closeout business topics, networking,with other businesses that want to sell excess inventory and much more. Still, the pandemic has placed a spotlight on small, local businesses, and more consumers are interested in supporting local business owners. Though businesses are still struggling to navigate a variety of new challenges, this really may be the ideal moment to start a new business. This year will mark the beginning for many closeout wholesale companies and closeout liquidators who chose to get into the game of buying and selling closeouts. They may do things differently than their predecessors, but that is a sign of progress and an indication that the closeout industry can adopt and change.
Merchandise USA is a wholesale closeout liquidator in business since 1984. We work companies who may be shutting down their warehouse, getting rid of dead stock or closing their Amazon FBA account and liquidating inventory.
