When you find yourself in a position where you have too much inventory, it may be time to consider having an overstock liquidation sale. If you are unable to sell the products on your own, through your existing sales team or an online liquidation, it may be time to look at closeout buyers who specialize in purchasing excess inventory that other companies are interested in getting rid of. These buyers specialize in buying wholesale closeouts and they will redistribute your merchandise to a different market at a lower price. This is the basic idea of how the overstock liquidation business works.
There are 4 major things to look for in closeout buyers and each is important. The wholesale closeouts business is a specialized field and you should do your research before quickly jumping into an agreement with just any liquidator. Getting involved with the wrong closeout buyers can be costly and stressful.
1. Reputation. When it comes to selling wholesale closeouts, the closeout companies reputation is very important because it gives you insight into what you can expect from them If you talk to companies who all gave terrible reviews about a closeout liquidator they worked with, you probably wouldn’t call them. But if you heard about a company whose overstock liquidation process was applauded you would want to know more about them. Look for closeout buyers who have done a great job for other sellers. Find companies who are happy to provide you with names and phone numbers of sellers they have worked with in the past If they are reputable closeout buyers, they should be happy to provide you with this information.
2. Finances. You will want to be sure you only contact closeout buyers who are financially independent and don’t have to rely on anyone for funding. You want to know you will be paid in full for your products without any issues, and also that you will be paid in a timely manner. Wholesale closeouts can potentially turn into big business, so it’s important to research your buyer to be sure they can come up with the money. Most people can talk a good game but at the end of the day it’s performance that counts. If you are going to have an online liquidation these orders should be paid in advance.
3. Experience. Make sure you are dealing with a company that has been in business awhile. It doesn’t take much these days for people to make contact and claim they are closeout buyers. Pretty much a phone and a desk will get you up and running. But in the overstock liquidation business, experience and reliability matter. An experienced overstock liquidation buyer has been in business many years, and they understand the market, the customers, and the value of different categories of merchandise. They will have had a broad range of buying experience from online liquidations and auctions to buying on sight at vendor warehouses to trade shows. Experienced closeout buyers will help you through the liquidation process.
4. Knowledge. Plain and simple, it’s good to do business with people who know what they are talking about. Overstock liquidation buyers who are familiar with products, prices, overseas cost of goods, freight rates, etc will make the selling process better because they have knowledge. For example, if you want to have an online auction and you are dealing with a company that has a long history of holding auctions, you will be much better off than if you are working with a company that specializes in retail store liquidations. These are different types of closeout buyers, each with different specialties and different knowledge. Take time to research your buyers. Find out what they do and don’t know about wholesale closeouts. Choose the company that has experience that fits your needs for your overstock liquidation.