When closeout companies acquire large amounts of inventory, these liquidation buyouts are often referred to as bulk closeout buys.. This is because the merchandise is bought in one fell swoop as a bulk deal. When a business finds itself in an overstock situation it may need to sell excess inventory to closeout suppliers or liquidators who can quickly purchase the entire inventory. It is generally easiest to sell a bulk closeout to overstock companies that specialize in this type of purchase. Small retailers or closeout websites may not be able to handle such a large purchase.
There are many reasons a business may choose to have a bulk closeout sale. It may be necessary to sell excess inventory if sales are slow and do not meet expectations. The cost of storing old merchandise in the warehouse can be very high, or may be even worse to hold overstock inventory at Amazon FBA warehouses. Closeout suppliers and overstock companies have large warehouses where they can receive huge shipments of slow moving or closeout inventory that a business may need to liquidate. It is generally easier to liquidate this type of stock as a wholesale deal where everything can be cleared out at one time. There is not much point in selling a little here and little there when the goal is to get rid of too much inventory quickly and for one large sum of money.
It is difficult for closeout suppliers to buy in small quantities; they need to work with companies that want to sell excess inventory in large quantities of toys, housewares, sporting goods, lawn and garden, or other closeouts. Overstock companies typically have large distribution networks and they require large enough quantities to supply their customer base. Small lots are actually more difficult to work with because shipping is more expensive and quantities are not deep enough. These bulk closeouts are better for retail customers or small liquidators.
According to Wikipedia, bulk purchasing (or "mass buying") is the purchase of much larger quantities than the usual, for a unit price that is lower than the usual. This is what we normally refer to in the closeout process where liquidators and overstock companies buy excess inventory. Wholesaling is selling goods in large quantities at a low unit price to retail merchants. The wholesaler will accept a slightly lower sales price for each unit, if the retailer will agree to purchase a much greater quantity of units, so the wholesaler can maximize profit. A wholesaler usually represents a factory where goods are produced. The factory owners can use economy of scale to increase profit as the quantity sold increases.
Many of the largest retailers offer customers deals on overstock merchandise and closeouts. These include big box stores like Walmart, Ross, Dollar Tree, Burlington and TJ Maxx. These deals are especially important around the holidays when consumers are searching for the best deals. Costco is an example of a large retail chain that takes advantage of special closeout opportunities and liquidations from importers or factories with too much inventory. They will give Costco special reduced pricing to get rid of excess inventory, and Costco passes these deals on to it’s customers.
When businesses need to unload merchandise to make room for new products, they typically offer something called factory closeouts. Seasonal goods, store closing merchandise, old products replaced by newer goods and returns are all typical examples of factory closeouts. These are products that are sold at below original wholesale costs to liquidators, overstock companies and closeout suppliers. They are often referred to as bulk sales.
The best part of factory closeouts is that they can be of high quality, branded items that are perfect for resale. And they can typically be purchased for 10 cents on the dollar. At these prices, businesses can resell factory closeouts for significant profits. They may be housewares, toys, lawn and garden, sporting goods, home decor, or any other product where the factory had too much inventory. Closeout buyers are always on the lookout for these deals on overstock merchandise.
Merchandise USA is a closeout supplier in business more than 35 years. We specialize in excess inventory, liquidations, closeouts and wholesale buyouts. Our customers include closeout websites, inventory liquidators and surplus inventory buyers of all kinds.