Inventory liquidators that specialize in selling excess inventory have many different distribution channels. When they buy you out of your liquidation stock, they may move your product in one of many directions Below are just some ways closeout companies get rid of the merchandise they liquidate:
1. Sell Overseas. Some companies have developed relationships with discounters in other countries like Guatemala, Bolivia, Panama, Bahamas, and Mexico. This allows them to buy surplus inventory and resell it into different markets at a much lower price. Selling excess inventory in the United States can present challenges because it can disrupt distribution channels of the liquidating company. When the inventory is shipped overseas it is unlikely this would happen, and it is often a better way to sell liquidation stock.
2. Sell Online. Some inventory liquidators specialize in the online business and buy surplus inventory that is sold off to distributors selling on Amazon, Ebay, or Shopify. These sites often do very well selling excess inventory and closeouts at discounted prices direct from business to consumer. Other liquidation stock is sold on customers own deal sites where they offer closeout inventory direct from business to consumer on their own deal site or online sales platform.
3. Sell To Brick and Mortar. Other closeouts companies buy surplus inventory for resale to brick and mortar discount stores in the United States. These are often dollar stores, variety stores and discounters that specialize in selling excess inventory of general consumer products including closeout housewares, closeout home décor, discontinued toys, excess inventory of crafts and games, etc. With a rebounding economy there is strong demand for stores like these that specialize in selling excess inventory and offers the consumer deals on liquidation stock.
4. Dollar Stores. Some closeout distributors buy surplus inventory for very low prices and specialize in working with dollar stores. These are often lower priced closeout novelties and import items that can be purchased on closeout for less than $0.50. Inventory liquidators that specialize in this market try to buy deals in very large quantities because they are dealing with small margins on low priced products. Dollar stores have remained very popular in the United States because they cater to customers who are very price conscious and don’t have a lot of discretionary income. These customers love deals and closeouts on everyday items they can find at bargain prices.
In every case, liquidation inventory is resold into a different market at deeply discounted prices. If you are selling excess inventory it is important to understand you will only be able to recover a percentage of your cost, and you will be selling at a steep discount. Good inventory liquidators will always be transparent with you from the beginning so you have a good idea of what you can expect to happen.