Why You Need Closeout and Overstock Merchandise
Your business has been stagnating lately. You are moving stock in and out, but the profit margin is getting tighter every day and your wholesale suppliers have already provided you with the lowest deals they can offer. Still you see competition moving ahead and selling products online almost at wholesale prices, and think about calling it a day and closing the store. While this could happen, you should look at the steps you’d have to take in the closing process, because these steps could actually save your business.
When a store is closing, the remaining merchandise is often packed in closeout pallets to be sold for pennies on the dollar as you have to move all the goods out of the store. This will attract many closeout buyers who will purchase your products and later sell them online for a profit. If closeout merchandise buyers make a profit on your merchandise, why would you not make a profit by browsing closeout sites, looking for closeout suppliers? Instead of liquidating your merchandise, you could look for reputable closeout liquidation companies to source your merchandise from.
What is Closeout and Overstock Merchandise?
As mentioned, when a store closes, the inventory that remained unsold is being liquidated, going for prices 25 to 50 percent below wholesale. This means that products are packed into closeout pallets, often with price tags still attached to them and sold either to closeout buyers, wholesale suppliers or directly to other retailers and customers through liquidation companies.
Overstock merchandise is slightly different as it is the merchandise that has been on the shelves for a while and has not sold for whatever reason. The store might liquidate such cheap wholesale merchandise in order to free shelf space for incoming products. This is often the case with seasonal goods like clothing, merchandise that is in during one season and out the other.
As a business owner you already understand the market dynamics but now you realize that your sourcing strategies have been wrong. Yes, you could have gone for the cheapest option and sourced products directly from the manufacturers, however, high minimum purchase requirements have put such deals out of your reach. But now you see that you can actually get your business back on track if you buy overstock merchandise or look for closeout sites and closeout suppliers.
Where to Buy Closeout and Overstock Merchandise?
As mentioned, you could browse for closeouts online and go through tons of closeout sites in search of closeout pallets of merchandise. But in fact this is not as hard as you could make it to be. The aim is to find a reputable closeout liquidation company. Such companies often work with top-tier manufacturers or even other retailers that are selling their overstock merchandise through the platform. They are usually under exclusive and strict contracts that guarantee quality and the prices are second best only to buying straight from the manufacturers.
The advantage for you is that you can buy overstock merchandise and closeouts in smaller closeout lots, meaning the high minimum purchase requirement is out of the way. With prices going below wholesale, you could secure a healthy profit margin that might keep your business running.
How can Closeout and Overstock Merchandise Benefit You?
The first reason is the reduced price and the increase in profit margin you are securing when purchasing such merchandise. Whether you are looking for closeout toys, home decoration products or some sport and outdoors goods, the process is the same: buy below wholesale, resell for a significant profit.
As the merchandise you would be purchasing has previously been in the store or a retailer’s storage space waiting to be displayed in the store, you are purchasing brand new products that have not been sold or even tried before. And due to the exclusive contracts liquidators have with manufacturers or other retailers, you will find that not only is the quality high but you are also being offered products from top brands. With the quality and price its is easy to see why one should look for closeout suppliers to stock up their inventory.
Whether you have a physical storefront or sell your merchandise online, buying overstock merchandise or closeout pallets of goods is the perfect option. In terms of online resale business, whether you sell through global platforms like eBay or Amazon, you could significantly increase your profit margin as well as your competitiveness in the market, without downgrading in terms of quality.
An additional advantage of buying overstock merchandise through closeout liquidation companies is the fact that every reputable supplier will provide a manifest with each of the closeout lots on offer. These manifests are lists that show you the type, the quantity and the quality of merchandise contained within the pallet. This way you know exactly what you are buying and can only focus on purchasing overstock merchandise you need.
While closeout and overstock merchandise usually come in brand new condition, there is the possibility of some products being damaged. This can either happen during transportation or handling process but the chances of this happening with a reputable liquidator and top manufacturers or retailers are slim.
So, all things considered, the question for a business owner that buys and sells products either through retail or online, is not why you need to buy closeout and overstock merchandise, but why haven’t you opted to buy overstock merchandise earlier?
It has to be added that with lower prices many opt to offer lower prices on resale in comparison to their competition in order to attract customers. While it might seem logical, it can have a strangely opposite effect. Scared of scams and false listings, buyers could regard your low-priced listing as fake and skip on by. This is why you should always keep an eye on the competition and while your profit margin could allow you to offer lower prices, get them as close to the prices of your competition, but still keep them lower and get your business to another level.
Direct Liquidation is a goTRG company.
Jordan currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Jordan is here to help you grow your business.
Schedule a sales callback with Jordan right now.
- Pallet - 90 Pcs - Outdoor Sports, Exercise & Fitness, Hunting, Camping & Hiking - Used, Damaged/Missing Parts, Open Box Like New, Like New, New Damaged Box, New - FITBIT INC, DRAGON, Speedo, Cebeci
USD $462.09 Bid NowEnds
- USD $5,134.52 MSRP
MixedQty: 901 Pallet (319 lbs)Ships from: Blacksburg, SC