If you have closeout, surplus or excess inventory that isn’t moving, one of the worst things you can do is allow it to sit in an outside storage facility. In business, we all seem to share similar problems, and one of the biggest is almost always a lack of storage space. There is usually more product coming in than there is going out, and in almost every case there just is not adequate room to work the way we need to. So naturally, more warehouse space in an outside public warehouse seems like a good idea. The problem is the additional expense.

The best thing we can do to help ourselves is very simple: turn over our inventory. Move goods. Sell stuff and ship. Keep moving goods and keep turning that inventory. I had a great uncle who used to say “sales cures all sins”, and to this day I believe these words of wisdom stand the test of time. They are as true today as they were 50 years ago. Storing slow moving and excess inventory at an additional expense is simply bad business. It would likely be much cheaper to reduce price, liquidate your third party warehouse, open up more space, re-invest the money into fresh inventory and move on. Storing old stuff for more money is bad business any way you look at it.

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 it all. 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 4 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.

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 products to sell that are 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.

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.


Lack of Contol: 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 look 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.

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.

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.

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 companies selling wholesale liquidation pallets would also have a difficult time operating from a fulfillment warehouse.

Merchandise USA is a surplus, closeout and wholesale liquidator. We specialize in discontinued products, bankruptcy inventory and liquidation sales. For more information on the liquidation process please contact us today.