How Do Large Companies Liquidate Excess Inventory?

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Large companies employ various strategies to liquidate overstock inventory, closeouts, and discontinued inventory. Here are some common methods that most businesses use. Keep in mind there are many different reasons a company liquidates closeouts, overstock products and excess inventory. It can be anything from having too much inventory in the warehouse to canceled orders to going out of businesses. It may also be a business from another country in need of clearing stock from the U.S. warehouse. But whatever the case, where to sell overstock inventory and closeouts applies to big and small companies.

  1. Discount sales: Offering significant discounts on closeouts and overstocked or discontinued items is a popular approach to quickly clear out excess inventory. Retailers may hold clearance events, offer seasonal sales, or utilize online platforms like eBay or Amazon to sell these items at reduced prices. Getting rid of old stock and unwanted inventory is an age-old necessity when you are running a business. You can’t keep dead stock in the warehouse if it has stopped selling; the warehouse space is too costly and you have to make room for new products arriving. Closeouts are just a necessary evil, as is selling off excess inventory and overstock liquidations.
  2. Liquidation companies: Partnering with inventory liquidation companies is another effective option for large businesses. These companies specialize in purchasing excess inventory in bulk at a discounted price, often ranging from 80% to 90% of the original cost. They then resell the inventory to various channels, including closeout websites, inventory liquidation buyers, closeout buyers, closeout brokers or online marketplaces.
  3. 3. Outlet stores: Establishing outlet stores or factory seconds stores provides a dedicated space to sell closeouts, overstock merchandise and discontinued inventory. These outlets typically offer lower prices and attract bargain hunters, helping to reduce excess inventory and generate additional revenue. It is also a great opportunity to offer your existing customers great deals when you have to clear stock from the warehouse or liquidate old inventory.
  4. Donation programs: Donating excess inventory to charitable organizations can not only help clear out unwanted stock but also enhance the company's corporate social responsibility image. Some retailers partner with specific charities to donate specific types of products. Whether you have too much inventory in the warehouse due to slow sales, excess inventory to sell because of canceled orders, or if you are shutting down your warehouse and ceasing operations, there are always opportunities to donate your excess inventory and closeouts.
  5. Employee purchase programs: Offering employees the opportunity to purchase overstocked or discontinued items at discounted rates can boost employee morale and provide them with affordable goods. This strategy also helps reduce inventory levels and generate some cash flow. Everyone loves a great deal, and your employees are sometimes the people who are most likely to benefit. Give them a chance to buy your closeouts and dead stock that is no longer selling and has to be liquidated from the warehouse and cleared into cash.
  6. Bundling and promotions: Combining slow-moving or excess products with popular items in bundles or promotional offers can increase the perceived value and encourage customers to purchase items they might not otherwise consider. This can help clear out closeouts, overstock merchandise and excess inventory while promoting other products. This works well with closeouts of lawn and garden products, closeout pet products, excess inventory of housewares and home décor as well as overstock children’s toys and sporting goods. Closeout merchandise of all types can be bundled with other excess inventory to improve the overstock liquidation sale. Companies that liquidate inventory use this strategy all the time.
  7. International sales: Expanding sales to international markets can provide an additional outlet for your closeouts, overstocked or discontinued inventory. Companies may establish partnerships with distributors or retailers in other countries to reach a wider customer base. Closeout brokers can introduce you to overseas buyers who may be able to take closeouts with restrictions on sales in the United States. As an example, if a Nationally recognized brand has too much inventory in the warehouse and has to clear stock, it may not want these closeouts on the market at a lower price because it can impact their everyday sales. But selling these closeouts overseas and liquidating inventory in another market may be acceptable. Not all inventory liquidators have the ability to do this, but some of the larger closeout buyers with customers abroad can help.
  8. Scrap or recycling: For certain products, such as electronics or clothing, recycling or scrapping may be the most viable option. This can help recoup some value from the materials and reduce environmental impact. Not all overstock inventory and closeouts have value. Sometimes, the only option is to literally dispose of the products. Keep in mind this should only be done once all other options have been explored. If you are looking for a reliable inventory liquidator, a Google search may lead you to the right company. Try using search terms like these: closeouts, overstock inventory liquidators, where to sell my overstock inventory, liquidation buyers, clear stock from U.S. warehouse, going out of business want to liquidate inventory, too much inventory in warehouse, sell excess inventory and unwanted stock for sale.

The choice of liquidation strategy depends on various factors, such as the type of closeout inventory, the company's target market, and the desired timeframe for liquidating the goods. Large companies often employ a combination of these strategies to maximize the value recovered from their excess inventory. Merchandise USA is a reliable closeout buyer in business more than 38 years. We buy all consumer products including closeout toys, closeout sporting goods, overstock pet products, overstock lawn and garden products, canceled orders on housewares, home décor and tools. If you are going out of business, shutting down your warehouse or need an inventory liquidator for any reason, we can help.