Understanding Closeouts And Liquidations

overstock surplus inventory

Closeouts and liquidations are a necessary evil for those of us in the distribution business. Obsolete inventory and surplus inventory must be managed and sold off regularly to maintain cash flow and keep the warehouse clean from dead stock. It is important to understand the value in selling old merchandise to excess inventory liquidators and surplus buyers.

Some management teams don’t believe in getting rid of dead stock below cost, and these companies tend to sit with old inventory for months or even years. In this case, the surplus inventory sits in the warehouse taking up valuable space that could otherwise be used to sell profitable merchandise. Some companies sit with old closeouts so long that the merchandise becomes unsaleable and has to be donated or destroyed.

Excess inventory liquidators play an important role in keeping warehouses clean and clutter free.. These overstock buyers and closeout distributors allow sellers to recoup part of their costs and move on. Not every item can be a winner and there will always be a percentage of inventory that is either slow moving stock, totally obsolete inventory, or simply dead merchandise that never sells. These are the items that should be discontinued and sold off for whatever price they will bring. At the end of the day, it is much cheaper to take a loss early than allow the surplus inventory to sit in a warehouse for years.

Nobody likes having to get rid of closeouts. But the truth is sometimes we buy too much; other times we buy a reasonable amount but don’t sell enough. We have also all had situations where a customer places an order, only to cancel once we commit to buying the goods. This leaves us in a vulnerable position where we have no choice but to get rid of the merchandise for whatever we can get. Sometimes in order to keep a valuable customer happy we have to dispose of excess inventory and allow the account to either cancel or return goods

Liquidators face new challenges today that never existed before. Now more than ever, it is important to understand the role obsolete inventory and closeouts play in our operations. If we don’t learn how to deal with surplus inventory our cash on hand may be severely impacted, and our warehouses can become overrun with obsolete inventory that we are unable to dispose of at any price. Excess inventory liquidators and surplus buyers can offer fast cash, make quick deals, and complete transactions quickly.

If you don’t know where to turn to get rid of inventory, an online search will find closeout websites and surplus inventory buyers who specialize in buying excess inventory. These companies can help sellers getting rid of inventory due to package changes, canceled orders, shortage of warehouse space, Amazon FBA returns, warehouse closures, shutting down operations and much more.