Bankruptcies: If things look bad and you find yourself in a situation where your business is losing money, bankruptcy is not necessarily your only way out. It is possible you can have a liquidation sale, turn things around and become profitable again, but it may require hiring a company that specializes in working with small businesses experiencing financial difficulties. Part of this process may include selling off closeouts if you have too much inventory, or even closing your 3PL warehouse if the expense is too great. There may be steps you are not taking or things you are not aware you can be doing to make your business better. This will likely include getting rid of extra merchandise and liquidating inventory to generate cash flow, restructuring or possibly downsizing your warehouse, closing warehouses, or other actions that will help you to stop losing money. But the good news is that you may have other options than shutting down your operation and liquidating inventory for cash. Liquidation buyers are another option and they will buy closeouts or excess inventory taking up room in your warehouse.
3PL Warehouse Closing: When you carefully asses your warehouse, Is it functioning efficiently and profitably, helping generate revenue and allowing you to deliver optimum service to your customers? If your answer is is “Yes” then carry on with what you are doing. If not, you need to look seriously at why shutting down your warehouse could be the best thing for your business. Running a warehouse can be a big drain on your resources both mentally and financially. Packaging company experts will take it off your hands and you can focus on the activities that directly grow your business and help you attract more customers and win more sales. Shutting down your warehouse and transferring this task to another company takes away stress and hassle that is associated with managing an aspect of the business that is not directly related to business growth.
Business Closing: If it is time to close your business, you might want to walk away and never look back. But closing a business is a bit more complicated than that. There’s legal paperwork you need to complete, assets you need to distribute, and employees you need to pay. If you walk away without fulfilling all the requirements, you risk legal disputes, a tarnished reputation, and unnecessary fees. The decision to close a business is not one you have to make on your own. If you own a partnership or limited liability company you may need to consult with other owners. If you own a corporation, you may need to consult with your board of directors. Work with your stakeholders to formulate an exit strategy and map out the best way to shut down the business. Then consider getting help from lawyers, bankers and accountants, tax professionals, or the IRS. Formulating a plan before deciding to cease operations can help you navigate the closure process smoothly.
Discontinued Inventory: For most companies involved in the sale of tangible products, selling through discontinued inventory is a significant recurring challenge. Discontinued stock can represent a significant amount of capital, and converting the inventory back into cash is important. However, it's also important to realize the best possible return on the product. Discounting too deeply can deplete profits and revenues, and might also undercut or devalue newer, more profitable merchandise. Despite these challenges, finding ways to sell your discontinued inventory is vital to a successful business.
Slow Selling Products:It happens to every retailer and closeout wholesaler from time to time. No matter how well you try to forecast sales trends and manage your excess inventory purchasing, you end up with slow selling products and closeouts that just don’t sell, or an overstock of certain items that you just bought too much of. This is a very common problem and nothing to worry about as long as you manage too much inventory in a timely manner and don't let it get out of hand. You may want to have a liquidation sale or warehouse sale to get rid of dead stock and you may consider closing your 3PL warehouse if you have too much inventory that isn't moving.
This can happen for a variety of reasons. Perhaps an unseasonably cold summer means no one’s in the market for a new bathing suit even though it’s July. A regional economic slowdown or major employer closing its doors can put a damper on sales of nonessential items. A downturn in the economy might result in a buildup of excess inventory creating liquidation stock for sale. Having surplus stock and closeouts is just part of running any business. When you’re stuck with slow selling products, merchandise or overstock, don’t give up. There are many different ways to get those goods moving. You can always have a liquidation sale and if you don't know how to do this just Google how to liquidate inventory and you will be on your way. Overstock inventory and closeouts are part of doing business in 2022.
Late Shipments: After more than two years into the pandemic, shippers want to see relief in 2022. First COVID-19 emerged, then came unexpected variants, and now there is a risk of global disruption following Russia’s invasion of Ukraine. Stakeholders in the industry don’t see much relief coming for shippers anytime soon. It may not get better and 2023 will possibly be worse, Supply chain disruptions will continue and companies with too much inventory may need to consider closing 3PL warehouses or having a liquidation sale to keep liquidation merchandise under control.
Some think this is not a U.S.-only problem but a global one. “This is just a symptom of a bigger problem that is global that affects origin ports in Asia, and that’s probably going to continue so I think we’re gonna see more waves,” said Widdows. “It gets better a little bit then ‘Here they come again.’” Knowing when or where the next disruption will come is difficult to predict. Conference panelists mentioned Russia’s invasion of Ukraine and upcoming contract negotiations between marine terminal operators. Selling excess inventory will become more important moving forward, as inventories build up and take up warehouse space needed for new merchandise.
Merchandise can help you sell dead stock and get rid of obsolete inventory. We specialize in closeouts of housewares, home décor, lawn and garden products and related overstock consumer products. We buy excess inventory from 3PL warehouses shutting down and Amazon sellers shutting down or downsizing their business and getting rid of all inventory.