If you have closeout, surplus or excess inventory that isn’t selling, one of the most costly mistakes you can make is to let it to sit dormant in an outside 3PL warehouse. In business we all seem to share similar problems, and one of the most common is a lack of warehouse space. There is usually more product coming in than there is going out, and in almost every case there simply is not adequate space to operate the way we want to. So naturally, more warehouse space in a 3PL public warehouse seems like a good idea. The problem is the additional expense. We often get calls from companies who are liquidating 3PL warehouses, and need to clear stock to free up cash and stop the bleeding of warehouse storage fees. Stop spending money to store dead inventory.

The best thing we can do to help ourselves is very simple: turn over our inventory. Move goods. Sell old merchandise and ship. Keep moving product and keep turning that inventory so we don't accumulate dead stock. The old saying “sales cures all sins" means that the key to everything is to sell inventory. Selling and shipping everyday can forgive all kinds of other mistakes. But spending more money to keep slow moving and excess merchandise is simply bad business. It would be much cheaper to reduce the price, liquidate your third party warehouse, get rid of inventory, free up warehouse space, re-invest the money into new inventory and move on. Merchandise USA can helpguide you through this closeout process and convert excess inventory into cash.

This is where Merchandise USA can help you. We liquidate third party warehouses all the time, and we understand how to work with them. We understand that if it’s the end of the month, you want your inventory out quickly, before the new month begins and you accrue more storage charges. We work with a large network of transportation companies, so it doesn’t matter if your warehouse is in Los Angeles, CA or Ft. Mitchell, Kentucky. We will make it happen, and we will make it happen quickly. And we buy all categories of surplus merchandise. So that means it doesn't matter what you have because we buy all consumer staples. Pet product liquidations, overstock luggage, excess picture frame inventory, surplus giftware, overstock toys, overstock housewares, or liquidation inventory of any kind.

We buy closeout inventory, overstock, excess inventory, and warehouse liquidations. We buy pallet loads and liquidate full warehouses of almost any type of product. Merchandise USA is a leader in our industry and we have been in business almost four decades. You can trust us to help you liquidate 3PL inventory, third party warehouses and public storage facilities. Call or e-mail us today with whatever your particular situation may be and we will be happy to help (888) 757-0060 or

Here are some of the biggest pros and cons of working with a 3PL company.


Efficiency: Whether you sell overstock pet products, closeout sporting goods or closeout toys, you will likely have success shipping faster and easier if you use a third party warehouse. These facilities are run by professionals who are experienced in picking, packing and shipping orders. They may help you move more goods in any given time period than you could move from your own warehouse, and this will also free you up to concentrate on other aspects of your business. If you have wholesale items for sale, 3PL companies are often well managed operations that can benefit you. Many 3PL warehouses work clients who need to liquidate Amazon FBA stock due to slow sales and products not selling. If you have wholesale lots for sale, it is often a good idea to let a 3PL warehouse handle the distribution of your closeouts so you can concentrate on other aspects of the business.

Flexibility: The simple fact is that there are times when business is better than others. 3PL logistics allows you to increase space as needed. You can increase and decrease your space as your business ebbs and flows. This is especially important if you have wholesale merchandise for sale that is by nature either seasonal or cyclical. Even in the case of a company going out of business, and there is a liquidation of a company, it is much easier to downsize 3PL warehouse space as needed until the entire inventory is liquidated. You may have your own warehouse now and are considering shutting down or closing the business. Maybe your products stopped selling and you need to clear the stock, maybe you are shutting down or closing your business due to Covid-19, or maybe you simply need to downsize your warehouse. If this is the case you can contact a 3PL warehouse and make a deal with them to handle your warehousing. If you are downsizing your warehouse, you can utilize 3PL warehousing to help after you have liquidated inventory.

Technology: Fulfillment warehouses that specialize in warehouse distribution tend to have state of the art technology systems. This means you can operate in real time with your inventory, and your system can communicate with their inventory management programs for efficient operations. The technological advantage is most likely helpful to businesses with wholesale sites and inventory management issues related to slow moving systems and procedures. But if you want to eliminate excess inventory and get rid of merchandise that isn't selling, inventory management systems will be very helpful to you. Many times items do not sell because the quantities on hand are too large due to mismanagement; an inventory management system keeps this in check. Whether you need to liquidate Amazon FBA stock or you are selling old inventory, you will be better off with a computer system that tracks your inventory so you don't accumulate surplus merchandise. When too much product accumulates and it is not selling, it puts you in a position where you are forced to get rid of inventory and empty the warehouse.


Lack of Control: When you allow an outside company to run your warehouse, you definitely have to give up control. No longer can you run in back to look at something, go grab a quick sample, or take a fast peek at something that requires inspection. In many cases, with closeout, overstock and excess inventory, shipments come in that must be properly inspected in a short period of time. We promise fast payment for everything we buy, and this means we need to receive, inventory and check-in quickly.

Commitment: Once you turn everything over to a third party warehouse and remove your inside people from doing this work, you are tied to the outside warehouse. If at any point you decide to bring these duties back in house you will essentially be starting all over again with a new warehouse crew and system. This would impact shipping for weeks or months until you are up and running again. On the other hand, if you are closing your warehouse and clearing stock, you may want to find a 3PL company to take over these responsibilities.

Reputation: I often tell my people that the strongest impression our customers have of our company is what the pallets and cartons look like when they arrive at their stores. If you get into a situation where your 3PL company does a sloppy job organizing and palletizing your orders, mislabeling cartons and/or pallets, and sending dirty cases, packing boxes sideways/upside down, etc, this affects your reputation because it affects the image your customer has of your organization. In addition, products can be damaged if packed wrong. As an example, we buy closeout luggage and overstock housewares pallets from companies who use 3PL warehouses. If these products are not packed well, portions or complete shipments can get damaged.


If you are having a liquidation sale or selling old inventory, your 3PL warehouse may help you get rid of inventory to make more space. If you need to get rid of inventory that is stored in your own warehouse, the most practical thing is to contact closeout companies like ours to help you. If you are looking for surplus inventory buyers It really doesn't matter what the reason is, so whether you are closing your business and must liquidate, liquidating and getting out of business, or shutting down and liquidating, the type of warehouse you have may justify the amount of time the liquidation process will take. Surplus inventory buyers try to work as quickly as possible in an effort to review your inventory, make an offer to buy closeouts and get the product shipped out of your warehouse as quickly as possible. If you are trying to liquidate Amazon inventory the process may take longer because the closeouts are often at many different Amazon FBA distribution centers around the country. This often takes up to 30 days to receive and it always takes longer to liquidate merchandise from Amazon. Not all surplus inventory buyers will allow Amazon removal orders to be sent directly to their warehouse without first being collected at an outside 3PL warehouse. If you have Amazon inventory located at a 3PL warehouse, we will work directly with your warehouse to liquidate merchandise and schedule a pickup quickly in an effort to reduce your warehouse fees.

So at the end of the day, although it may seem that 3PL distribution is a slam dunk, you'll have to consider it very carefully. Just because the largest logistics companies in the United States promise they can do the job for you, it may not mean you are a match. Surplus and closeout companies would have a very difficult time operating from a third party warehouse. Wholesale liquidators, online liquidation auctions, and closeout buyers like us who are selling discontinued inventory would also have a difficult time operating from a fulfillment warehouse. If you are having a liquidation sale it is easier to do this from your own warehouse vs closing out merchandise in a 3PL warehouse.

If you want to downsize your business and get rid of inventory, a 3PL warehouse may be very good for you. We are Amazon liquidators and much of our inventory comes from Amazon warehouses where they receive more than 50 containers per year. Major companies call us when they need surplus inventory buyers and overstock buyers to clear stock, liquidate warehouses, close down warehouses, or have a liquidation sale and go out of business. We also buy closeouts from companies you have experienced slow sales due to the pandemic. Thousands of companies have been forced to shut down due to Covid-19 or downsize due to Covid-19. Due to the large number of warehouses liquidating inventory, there is a high demand for closeout buyers and liquidators who buy wholesale items and old inventory. Often times there is a need for buyers who can handle companies in need of liquidating entire warehouses.

Merchandise USA is a surplus, closeout and wholesale liquidator. We specialize in buying discontinued products, bankruptcy inventory and liquidation sales. For more information on the liquidation process please contact us today. Our team of liquidation buyers will be happy to review your obsolete inventory and make you an offer to buy closeouts and discontinued inventory you are selling. Merchandise USA has an excellent reputation and we have been in business more than 35 years.