Clearing Out Your Warehouse: Strategies for Inventory Reduction and Closeout Liquidations.

Holding onto excess inventory, closeouts, overstock products and abandoned inventory can be a significant drag on a business. It ties up valuable capital, increases storage costs, and risks obsolescence because dead inventory sitting in the warehouse never gets better; it always gets worse. If you're facing a similar situation with closeouts, abandoned inventory, overstock, discontinued items, liquidation products or excess stock, it's time to take decisive action. Clearing your warehouse not only frees up valuable space but can also generate unexpected revenue streams. We will explore various strategies to effectively clear your warehouse stock while maximizing your returns and minimizing losses.

1. Inventory Assessment and Categorization

The first step is to conduct a thorough closeout inventory assessment. This involves:

• Identifying and categorizing all items:
• Fast-moving: Items with high demand and quick turnover. These are going to be your better sellers and typically doesn’t include leftover inventory or closeouts that aren’t selling.
• Slow-moving: Items with low demand and slow turnover. This may include overstock pet products or liquidation housewares products you are keen to offload to make space in the warehouse for new products arriving.
• Non-moving (dead stock): Items that have not sold for a significant period.  This is old inventory you don’t need or want anymore and stock you are looking to offload in bulk.
• Closeouts: Items that are being discontinued by the manufacturer. These are products you may be able to sell, but since you won’t have any future support from the importer, it would be best to liquidate the inventory now, rather than wait for some “better” time later. 
• Damaged or defective: Items with quality issues. Most closeout buyers and inventory liquidators don’t buy salvage. They are looking for name brand closeouts or brand new inventory such as closeout lawn and garden products, overstock toys, and abandoned inventory of pet products.
• Determining the condition of each item:
• New: Items in pristine condition. Wholesale liquidation buyers are interested in new items.They want closeouts and overstock products that are in good condition.
• Used: Items that have been previously owned or used. Most inventory liquidators won’t be interested in used products.
• Damaged: Items with defects or imperfections. The same applies here.
• Assessing the value of each item:
• Original cost: The initial purchase price of the item. Keep in mind when offloading closeouts, overstock products, discontinued items and abandoned inventory, you will only be able to recover a small percent of the original cost. Inventory liquidators may only be able to pay pennies on the dollar, however, if you are keen to clear stock and need to move inventory quickly, they can take everything in one fell swoop.
• Current market value: The estimated price the item could be sold for in its current condition. This has nothing to do with what companies that buy overstock and closeouts will give you. Don’t have too high expectations of how much you will get.
• Salvage value: The potential value of the item if it is sold for parts or recycled.

2. Pricing Strategies

• Deep Discounts:
• Percentage discounts: Offer significant discounts on all items, such as 20%, 50%, or even 75% off. Inventory liquidators are specialists in buying and selling closeouts, overstock items, liquidation inventory, abandoned inventory, and excess merchandise. They know how to take dead stock and re-sell it to a different market. They will be able to sell your overstock inventory to a secondary customer base that will not interfere with your current distribution channels.
• Bundle deals: Group together slow-moving or related items and offer them at a discounted price. Consider selling overstock sporting goods and closeout pet products to the same closeout buyers. Consider selling overstock housewares and discontinued home décor inventory at the same time in a bundle. Putting together overstock inventory and closeouts of similar discontinued products may sell your goods faster.
• Tiered pricing: Offer progressive discounts for your closeouts and abandoned inventory. Give greater discounts to closeout buyers willing to take the entire inventory.
• Psychological Pricing:
• Odd-even pricing: Price items at slightly below whole numbers, such as $9.99 instead of $10. Yes, this is a mind game, but everyone does it. You can try working with closeout brokers and closeout websites, overstock websites and liquidation websites to offload excess inventory.
• Loss leader pricing: Offer a few high-demand items at a significantly reduced price to attract customers. This is common practice when looking to offload products in bulk to make room in the warehouse for new goods arriving. Whether you are shutting down operations, downsizing warehouses or just looking to reduce inventory, this may be an effective closeout strategy.
• Auction-style Selling:
• Online auctions: Utilize platforms like eBay or Amazon to sell items through auctions. These are good ways to present your closeout merchandise, abandoned inventory and overstock products to the largest audience of closeout buyers and inventory liquidators possible.
• Live auctions: Host a live auction event to generate excitement and attract potential buyers. This is becoming a more popular way to get rid of closeouts and overstock inventory in large quantities. Some of our customers have been offloading excess inventory in bulk on live auctions and it is a good way for companies to liquidate inventory quickly.

3. Sales Channels

• Online Marketplaces:
• Amazon: A massive platform with a vast customer base. Whether you need to reduce inventory to create cash, or you are making room in your warehouse for new products arriving, Amazon can be a good way to liquidate inventory and sell excess inventory.
• eBay: A popular platform for auctions and fixed-price sales.If you are going out of business and clearing stock from your warehouse you might try eBay.
• Facebook Marketplace: A social media-based platform for local buyers. This can be an effective way to liquidate excess inventory to closeout buyers. If you are looking to a closeout partner, consider a simple Google search using these suggested terms: closeouts, keen to offload inventory, looking to get rid of overstock inventory, keen to clear stock from warehouse, downsizing warehouse, shutting down business, reducing inventory, inventory liquidation, liquidation buyers, liquidation products, closeout brokers, sell closeout merchandise.
• Other online marketplaces: Consider platforms like Etsy, OfferUp, and Letgo.
• Physical Sales Channels:
• Consignment shops: Partner with local consignment shops to sell your items. This may not be your ideal choice, but it is a good way to get rid of overstock products and make room in your warehouse for new goods arriving. Getting rid of excess merchandise can be a challenge so you have to be creative and look everywhere for inventory liquidation opportunities.
• Garage sales or yard sales: Host a sale at your home or a rented space. This moves products in smaller quantities, but it is still a good way to get rid of old inventory and closeouts you don’t want anymore.
• Pop-up shops: Rent temporary retail space to showcase and sell your inventory. This is common with seasonal closeouts including Halloween inventory being liquidated, and Christmas closeouts and abandoned inventory.  Keep in mind, seasonal products are always leftover at the end of the season and need to be disposed of. There are some closeout liquidators that specialize in buying overstock products of seasonal and end of year inventory like this.
• Liquidation sales: Partner with a liquidation company to sell your inventory in bulk. These are overstock buyers and closeout companies that specialize in buying excess inventory in bulk, so generally a pretty good option for offloading large amounts of inventory all at one time. Keep in mind, with these inventory liquidators you are looking at recovering pennies on the dollar.

4. Marketing and Promotion

• Social Media Marketing:
• Targeted advertising: Use social media platforms to target specific demographics with your ads. If you are liquidating Amazon inventory, many closeout buyers will not allow removal orders to be sent directly to their warehouse. So, if you have excess inventory or abandoned inventory stored in a 3PL warehouse or fulfillment warehouse, your chances of finding an inventory liquidator, overstock buyers, or closeout buyers will be much better.
• Local Advertising:
• Print advertising: Place ads in local newspapers or community magazines. This is the old-fashioned way to find closeout buyers and inventory liquidators, but it still works. Remember, if you are getting rid of old inventory you don’t want or need anymore, there will be a buyer somewhere willing to give you something just to take it off your hands. Just because the overstock inventory doesn’t have value to you, doesn’t mean it won’t work for an inventory liquidator or other companies that buy closeouts and overstock products for resale.
• Radio or TV advertising: Consider local radio or TV spots to reach a wider audience. Radio advertising can be an effective way to promote selling distressed inventory and liquidation products. Keep in mind, today’s consumer loves a bargain and is often willing to buy almost anything you want to get rid of as long as the price is low enough.

9. Subleasing Extra Warehouse Space

Once you have successfully cleared a portion of your inventory and you get rid of excess inventory sitting in your warehouse, consider subleasing the extra warehouse space. This can generate additional revenue and offset the costs of maintaining the space.

• Identify potential subtenants:
• Businesses in related industries: If your warehouse is suitable for their needs, businesses in similar industries may be interested in subleasing space. If you can manage to eliminate your dead stock, sell off closeouts, overstock products, excess inventory and discontinued products you don’t need anymore, then you can lease out that space! Think of the revenue you can get for warehouse space that used to be filled with old inventory you didn’t even want!
• E-commerce businesses: E-commerce companies often require temporary storage space for inventory. This is a great option for subleases. Online sellers specializing in selling closeout housewares, closeout lawn and garden items or other deals on excess inventory and overstock are all good candidates for leasing extra space.
• Seasonal businesses: Businesses with seasonal inventory needs may be interested in short-term subleases. These companies are more likely to have year end closeouts and seasonal overstock due to the nature of their business. Companies that liquidate inventory and buy closeouts are familiar with this and they may be able to help you sell your closeouts, offload excess inventory or find inventory liquidators to help you liquidate merchandise.
• Prepare your warehouse for subleasing:
• Clean and organize the space: Ensure the warehouse is clean, well-maintained, and presentable. This is a great opportunity to turn dead stock into new space for new goods. Once you clean up the space, you will realize what a waste of money it was to let dead inventory occupy great floor space. In today’s environment, warehouse space is too costly to store closeouts, overstock products, liquidation stock and abandoned inventory that loses money.

Merchandise USA is one of the oldest and largest inventory liquidators and we have been in business since 1984. We specialize in buying closeouts, abandoned inventory, overstock products and discontinued items from importers who have too much inventory. When warehouse costs are too high or storage fees become too costly, we can help by buying your entire inventory for cash. We buy from 3PL warehouses that are shutting down, e-commerce sellers closing their businesses and other closeout opportunities. If you are keen to liquidate inventory from your warehouse, call us today.