Uncluttering Your Warehouse: Strategies for Clearing Excess Inventory and Overstock

A cluttered warehouse is more than just an eyesore; it's a significant drain on your resources. Excess inventory, closeouts, abandoned inventory, canceled orders, discontinued products, and overstock merchandise all contribute to a stagnant inventory that ties up valuable capital, increases storage costs, and hinders operational efficiency. Here we will outline a comprehensive approach to decluttering your warehouse and freeing up valuable space.

1. Inventory Assessment & Categorization

• Conduct a Thorough Inventory Audit:
• Physically count and inspect every item in your warehouse. You will find some products are selling well, but other items are dead stock that haven’t sold in years. This is excess inventory and unwanted merchandise you don’t need and you won’t miss if it was gone. Get rid of these products by offloading them to inventory liquidators as quickly as possible.
• Utilize inventory management software to track stock levels and identify discrepancies. Good software may help, but the truth is we all have slow-selling inventory that contributes to having too much old inventory sitting in the warehouse. If you don’t spend ample time working on selling through these closeouts as time goes by, you will find you are stuck with piles of old inventory collecting dust. Yes, there are inventory liquidators that specialize in buying overstock inventory of this nature, but only if you are on top of the problem and can offer it on a liquidation sale to get rid of it.
• Categorize Inventory:
• Fast-moving: High-demand items with quick turnover. These products are likely okay and selling well, so no need to get rid of these. Just monitor them to be sure they continue selling well.
• Slow-moving: Items with low demand and slow turnover. These are potential closeouts you may want to identify as items that have to go. If they are selling slowly, you will likely not give them the attention they need and sales will continue to get worse. These items will languish and sit in your warehouse soon. Identify them as potential closeouts that you will want to find inventory liquidators for.
• Non-moving (Dead Stock): Items that have not sold for an extended period. This kind of dead inventory is most definitely a problem. It isn’t selling now and it hasn’t sold in a long time. These items have to go and you should be actively looking for closeout buyers, closeout brokers and inventory liquidators as options to offload inventory.
• Closeouts: Items discontinued by the manufacturer. These are products that may be okay, except you won’t be able to get them anymore. So there really isn’t much point it making too much of an effort. When they are gone, they are gone, and you won’t be able to replace them with new stock. Better to consider liquidating these closeouts.
• Abandoned Inventory: Items from canceled orders or returned goods. These closeout products are examples of liquidation inventory you want to get rid of. Whether they are closeout housewares, closeout pet products or overstock lawn and garden inventory. These discontinued products are abandoned in your warehouse and not doing anyone any good. Make an effort to find inventory liquidators where you can offload closeouts and overstock of this nature.
• Discontinued Products: Items no longer produced or sold by your company. Discontinued products are closeouts that inherently have nothing wrong with them, so you may be inclined to let them hang around. The problem is, you won’t be getting more of them so there is little point in putting much energy into them.
• Overstock: Items with excessive stock levels compared to demand. If you need a closeout partner to help liquidate your stock of overstock items, consider doing a simple Google search using these terms: keen to clear stock from 3PL warehouse, abandoned inventory stuck in warehouse, getting rid of closeouts, looking to offload inventory in bulk, liquidation process, closeout brokers, selling old inventory, downsizing warehouse, going out of business, abandoned inventory in warehouse, shutting down business.
• Damaged or Defective: Items with quality issues that cannot be sold. Most closeout buyers today are not willing to buy damaged items. Mostly, they are looking for name brand closeouts and overstock products of pet products, home accents, closeout housewares, excess inventory of garden products and liquidation inventory of toys.

2. Pricing Strategies

• Deep Discounts:
• Percentage Discounts: Offer significant discounts on all items, such as 20%, 50%, or even 75% off. The secret to offloading excess inventory in bulk is to price it low enough that inventory liquidators and other overstock closeout buyers are interested. Once you have these excess inventory buyers on the hook, they can make you an offer to take the complete inventory at one time.
• Bundle Deals: Group together slow-moving closeouts or related overstock items and offer them at a discounted price. This means if you have closeout pet products sitting in the warehouse and you also have excess stock of sporting goods, maybe you can offer them together to offload in bulk.
• Tiered Pricing: Offer progressive discounts based on the quantity purchased. Typically, the higher the discount, the easier it will be to get rid of discontinued items, closeouts, overstock inventory and abandoned stock. Liquidation buyers respond to low prices, and the less they can pay the more interested they will be. Inventory liquidators often buyout complete closeout inventories in bulk for re-sale to discount stores.
• Psychological Pricing:
• Odd-Even Pricing: Closeout Price items at slightly below whole numbers, such as $9.99 instead of $10. Sure, this is a game but we all play it. It’s going to be easier to sell a closeout frypan for $9.99 than $10.00.
• Loss Leader Pricing: Offer a few high-demand items at a significantly reduced price to attract customers. If your goal is to reduce inventory and get rid of leftover products if your company was acquired, then you have to reduce prices below original cost.
• Auction-Style Selling:
• Online Auctions: Utilize platforms like eBay or Amazon to sell items through auctions. Closeouts and liquidations are often sold at auctions with no reserve. This means, an entire pallet or truckload of overstock inventory and obsolete goods is presented to liquidation buyers at ANY price. So, whatever the best offer is, goes.
• Live Auctions: Host a live auction event to generate excitement and attract potential buyers. Live auctions have become an effective and fast way to get a good read on obsolete inventory that may not be selling. If you have a warehouse filled with closeouts, overstock products and abandoned inventory, try selling live.

3. Sales Channels

• Online Marketplaces:
• Amazon: A massive platform with a vast customer base. If your business was recently acquired and the buyer didn’t want your inventory, Amazon may be an effective way to offload closeouts, overstock products and abandoned inventory leftover from when you sold your company.
• eBay: A popular platform for auctions and fixed-price sales. Closeout websites and overstock websites have a similar format to eBay and this may be a good way to liquidate inventory you aren’t interested in holding onto and no longer need.
• Facebook Marketplace: A social media-based platform for local buyers. This is a popular way to offload inventory in bulk to bargain shoppers and deep discount buyers interested in taking advantage of closeouts, overstock products, excess inventory, abandoned inventory and slow-moving inventory.
• Other Online Marketplaces: Consider platforms like Etsy, OfferUp, and Letgo.
• Physical Sales Channels:
• Consignment Shops: Partner with local consignment shops to sell your closeout items and overstock products. These retailers are accustomed to promoting overstock inventory at discounts to bargain shoppers.
• Pop-up Shops: Rent temporary retail space to showcase and sell your obsolete inventory, closeouts, lawn and garden closeouts, overstock toys and games and bulk inventory of stationery and other overstock.
• Inventory liquidation Sales: Partner with a liquidation company to sell your inventory in bulk. Try to work with the largest and most reliable closeout buyers in the U.S. These are closeout specialists that have been in the industry for 20, 30 or even 40 years. They understand the liquidation process and have closeout strategies that can help you understand how to offload closeouts in bulk.

5. Negotiating with Suppliers

Return Merchandise Authorization (RMA): If possible, return unsold inventory to your suppliers for a partial refund or store credit. Dealing with returned merchandise can be a challenge because most inventory liquidators and other buyers of closeouts and excess inventory are looking for name brand closeouts. They don’t want used or damaged products, and they are most interested in closeout pet products, closeout home accents, companies liquidating housewares and home goods, and overstock buyouts of lawn and garden inventory.

• Negotiate Better Terms: Negotiate better payment terms or lower prices on future orders.
• Explore Consignment Options: Consign your inventory to your suppliers and only pay for what sells. Consignment is another way to move excess inventory out of your warehouse while trying to find a way to liquidate merchandise and turn it into cash.

6. Liquidation Options

• Liquidation Companies: Sell your inventory in bulk to liquidation companies. The overstock buyers specialize in buying and selling overstock, obsolete and unwanted merchandise. Their goal is to buy inventory from you in bulk, redistribute it to a secondary market that will not interfere with your regular distribution channels, while making a profit. Keep in mind, when offloading closeouts and abandoned inventory to an inventory liquidator, you will only get pennies on the dollar. However, what this liquidation process will do for you is empty your warehouse and help if you are keen to clear stock and offload everything in one bulk sale.
• Auction Houses: Sell your inventory at auction to businesses or individuals. The only problem with auctions is you may not know exactly how much money you will get for your surplus inventory. It may be sold absolute, which means even a very low offer will win the bid. The good news is, if you are shutting down your business or moving out of the warehouse, this is a fast way to open floor space in your warehouse and get the inventory out fast.
• 7. Preventing Future Inventory Buildup

• Improve Demand Forecasting:
• Analyze Historical Sales Data: Identify seasonal trends and demand patterns. Seasonal businesses are more likely to have year end closeouts and overstock products. Any business selling Christmas and Halloween will have closeouts and overstock inventory leftover at the end of the season that need to be disposed of. If you have enough warehouse space to store the inventory, you might consider holding it for another season and carrying it over until next year.
• Conduct Market Research: Stay informed about market trends and consumer preferences. Closeouts by definition are made up of old inventory that does not meet current market needs. By staying on top of market trends, you will have a better understanding of what inventory you should keep, and what overstock inventory and closeouts you no longer need and should liquidate to closeout buyers.
• Utilize Forecasting Tools: Utilize forecasting software or tools to predict future demand. By doing this, you might be able to reduce the amount of overstock inventory you end up with at the end of a season or sales cycle. The less overstock inventory you have leftover, for whatever reason, the better off you will be. For example, if your company is a houseware distributor and you are left at the end of the season with closeout frypans, overstock skillets and excess inventory of tongs and dinnerware, you can try to do a better job of forecasting so you don’t have these overstocked inventories again.
• Optimize Order Quantities:
• Implement an Inventory Control System: Implement a system to track inventory levels and reorder points. One of the hardest things for liquidation buyers to do is keep good inventory levels. In the closeout business, we are always buying and selling excess inventory in all categories and things move very quickly. When we are keen to clear inventory from a warehouse, it can be challenging to keep tabs on what is coming.
• Order in Smaller Quantities More Frequently: Minimize the risk of overstocking by ordering in smaller batches. When buying closeouts, there is no way to control the amount of inventory ordered. Vendors are keen to clear the entire inventory, so we often take everything that is available for liquidation and ask questions later. Closeout websites and overstock websites allow you to sell smaller lots in a more controlled manner. Liquidation companies act as overstock inventory buyers and we liquidate excess inventory quickly, and all at one time.

Subleasing Extra Warehouse Space

Once you have successfully cleared a portion of your inventory, consider subleasing the extra warehouse space. This can generate additional revenue and offset the costs of maintaining the space.

• Identify Potential Subtenants:
• Businesses in Related Industries: If your warehouse is suitable for their needs, businesses in similar industries may be interested in subleasing space. For example, if you are in the closeout business and you are already buying excess inventory of closeout housewares, overstock home goods, liquidations of toys and games and excess inventory of lawn and garden products, you can sublease your space to smaller companies that do the same thing. There will not be a conflict of interest, and you will already have a good understanding of the liquidation process they use.
• Merchandise USA has been an overstock buyer in the closeout business almost 40 years. We buy excess stock of pet products, closeout housewares, overstock inventory of school supplies and hardware, discontinued toys and closeout sporting goods. We can help you with the liquidation process and closeout brokers process if you are looking to offload lawn and garden closeouts, get rid of home goods overstock or any excess inventory of consumer products. If you have liquidation stock due to closing down operations or moving your warehouse, we can help you. Wholesale liquidation companies are not all the same, so consider contacting Merchandise USA if you are getting rid of overstock inventory, closeouts and abandoned inventory. We are inventory liquidation buyers ready to buy in bulk.