Where to Buy Pallets of Closeouts and Overstocks

Last Updated: March 9th, 2020

Working from home, part or full-time is becoming popular and among the jobs one can do, buying wholesale merchandise to resell online stacks high on the list. However, in a market that demands both quality and low prices, it is very hard to stay afloat, especially when the profit margins are dwindling, no matter how reliable and favorable your wholesale supply deal is.

In order to provide quality, you have to work on a tight profit margin and often eat into it to the point where it is no longer viable. Opting to purchase cheaper products means risking or taking a significant step backward in terms of the quality of the products you offer. However, this does not mean you can’t offer both quality and price at the same time.

Closeout buyers are thriving lately due to the ability to provide both, and overstock merchandise is offering similar levels of quality and price. Both these types of merchandise are usually sold 25 to 50 percent off the retail price. To take full advantage of both, first you have to understand what overstock and closeout merchandise is as well as where to source the merchandise for the highest chance of maximizing your profit.

Understanding Closeout and Overstock Merchandise

To understand why closeout or overstock merchandise can benefit your business and competitiveness on the market, you have to understand what they are.

Closeout merchandise is the type of merchandise that is being offered usually by a company that is about to close its doors for good. To cash in as much as possible, the company owners will reduce the price and offer their merchandise either to closeout suppliers or other retailers at reduced prices and in bulk.

A company does not, however, need to close to offer closeout merchandise. Very often you will find that a company will be offering products that have been sitting in the store for a while and have not been sold, or the turn of the season is coming, and the retailers is looking to sell the summer clothing and empty the shelf space for winter items. Seasonal goods can always be bought very cheap this way.

Overstock merchandise is fairly similar, but is different in one aspect. For whatever reason, a company or a retailer has made a huge order and bought surplus inventory that they are now selling on more cheaply to clear the shelves. Similar to closeouts, the retailer will sell such merchandise to empty shelf space for new, more in-demand items.

Where and How to Buy Closeouts and Overstock?

You can browse for closeouts online and go through thousands of closeout sites and closeout suppliers. Along the way, you might run into a liquidation closeout supplier or a liquidation company dealing with overstock or closeout merchandise.

Why is this interesting? Liquidators provide platforms where merchandise from retailers and manufacturers is quickly liquidated to small businesses. That’s why the prices you can see listed on a number of liquidation closeout sites are lower than at wholesalers, which will allow you to maximize your profit margin.

The Advantages of Buying from Closeout Liquidation Companies

You will find that liquidators offer closeout lots and closeout pallets of merchandise such as toys, meaning you are paying a lower price per unit for buying in bulk. The price is not the only advantage. We mentioned earlier that overstock merchandise brings another positive to the plate, and that is quality. With closeout and overstock merchandise, you are buying pallets of products that have either been in the storage for a while without being sold, or have been displayed on a store shelf but never sold. This means that these products are in brand new condition, without ever being used.

There are slight chances that there might be some damage to the products that could have occurred during shipping but the chances are very slim if you are working with reputable companies. We can’t stress enough the importance of working with reputable companies. Whether these are specialized closeout liquidation companies or general liquidators, the higher the reputation, the better the service and the products. Top-end liquidators work with top tier retailers and manufacturers, meaning the quality of products being liquidated, especially if it is overstock merchandise or closeout lots, is of high level.

In addition, every top liquidation business will provide you with a manifest of the products being sold within your chosen closeout lots or closeout pallets.

This means you will always know the quantity, the type and the condition of the products contained in the pallet, meaning you don’t have to guess and buy large quantities of overstock merchandise blind just to create a larger inventory of one specific product. By reading through each manifest carefully, you can select to buy only the closeout pallets that have the merchandise you need. You will be able to find closeout toys or home decoration items and purchase in closeout pallets or even truckloads, especially from top liquidation companies like Direct Liquidation, a goTRG company.

Improving Your Business with Closeout and Overstock Merchandise

As you can see from this short read, to improve your business and maximize your profit you should look for closeout lots from a reputable closeout supplier. Not only will you be able to stock up for a longer period with significant quantities of merchandise, you will also be able to get them at prices between 24 and 50 percent off the retail price in brand new condition, which means the quality of the items is not compromised. When reselling online you could gain a significant advantage over your competition.

However, as we always advise, do some research on the market, compare the prices offered by your competition and price your items just below that. Putting too low of a price tag on any item will raise suspicion from the buyers regarding the validity of the listing. So, be smart and also be patient and count your profits only after you have sold all the items from each of the closeout pallets you might have purchased.

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Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

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