The business of buying closeouts, selling excess inventory, and warehousing overstock products can be a very rewarding one, both financially and personally. However, it is also a very demanding business, and it is important to understand the amount of work involved before you get started in the closeout business. Overstock inventory is excess merchandise generally leftover from a project, or end of line unwanted merchandise that is being disposed of. It is called closeouts, because it is excess, surplus or otherwise obsolete inventory a company wants to get rid of.
Buying closeouts
Closeouts are products that are being sold at a discounted price because the business is discontinuing inventory, making room for new products, or going out of business. To find good closeout deals, you need to network with retailers, wholesalers, and liquidators. You also need to be able to assess the value of the overstock products or other dead stock you are buying and negotiate good prices.
Once you have found a good deal on closeouts, you need to arrange to transport the liquidation products to your warehouse. This can be a challenge, especially if you are buying large quantities of products or if you are shipping the products from overseas. Closeout distributors are accustomed to dealing with this because they are always working with closeout brokers and inventory liquidators.
Selling excess inventory
Once you have the closeouts in your warehouse, you need to start selling them. This can be done through a variety of channels, including online marketplaces, brick-and-mortar stores, and auctions. Closeout websites are an effective way to get rid of discontinued inventory, but you can also sell to closeout distributors, inventory liquidation buyers and other buyers of overstock products
To sell your products successfully, you need to take high-quality photos and write persuasive listings. You also need to be responsive to customer inquiries and ship orders promptly. Just because these products are overstock items and merchandise that may no longer be needed, that doesn’t mean it isn’t valuable to the right closeout buyer.
Warehousing overstock products
Warehousing overstock and closeout products requires careful organization and management. You need to keep track of your inventory levels and ensure that the products are stored properly. You also need to have a system in place for picking and packing orders. Liquidation products often sell quickly, so you have to have a system in place where you can pull, pack and ship orders fast. In order to successfully liquidate merchandise and be an overstock liquidation buyer, you will have to learn to act quickly. Liquidation buyers often have large warehouses with enough staff to receive and ship fast. Companies that liquidate inventory are sometimes even second and third generation owners
In addition to the day-to-day tasks of buying, selling, and warehousing closeout products, you also need to take care of the administrative side of the business. This includes accounting, marketing, and customer service. Buying closeouts is only part of the equation; you have to advertise your closeouts, setup a payables system, and have a sales organization that understands selling excess inventory.
How much work is involved?
The amount of work involved in the business of buying and selling closeouts, selling excess inventory, and warehousing overstock products varies depending on a number of factors, such as the size of your business, the types of products you sell, and your sales channels. Liquidation buyers have to put in a lot of hours in order to get the job done properly. There is always liquidation stock available to buy; the issue is how do you manage the entire closeout process.
However, most business owners in this industry work long hours, often 60-70 hours per week. This is especially true when you are first starting out and trying to grow your business. Inventory liquidation buyers get wrapped up in their businesses because there are so many details. Which liquidation stock should you buy? Where will you store your closeouts and overstock inventory? Do you have a sales channel of liquidation buyers and closeout websites to work with?
How to enjoy your life while putting in so many hours
It is important to find ways to enjoy your life even when you are working long hours. Here are a few tips:
Additional tips for success
Here are a few additional tips for success in the business of buying closeouts, selling excess inventory, and warehousing overstock products:
Conclusion
The business of buying closeouts, selling excess inventory, and warehousing overstock products can be a very rewarding one, but it is important to understand the amount of work involved before you get started. Merchandise USA has been in the closeout business more than 38 years. We specialize in buying closeout lawn and garden inventory, pet product closeouts, excess stock of children’s toys, overstock home accessory inventory and overstock sporting goods. If you are shutting down your warehouse, going out of business or liquidating inventory for any other reason, we can help you understand the liquidation process and how to sell your overstock inventory.