If you are planning for your business model, then its likely you are looking for the most cost effective way to source products. Market experts are often found debating on the best source for buying your merchandise. Many people turn to local wholesalers and even overseas factories to try and source cheap “new” products.
However, as of recently the idea of wholesale closeouts is gaining popularity as a good source of merchandise for start-ups and most importantly the e-commerce industry, which is benefitting the most with closeouts.
Understanding Wholesale Merchandise Vs Closeouts:
Wholesale Merchandise: Wholesale merchandise deals with stock being bought in large quantities, directly from the manufacturer or sometimes from the wholesaler with a purpose to further sell it to retailers or the e commerce portals. The stock from here is resold to consumers or the buyers with a price inclusive of profit.
Closeout Stock: These are the high end name brand goods consumers demand, forget sourcing no name brand electronics when you can get closeout truckloads of things your customers actually want. The way it works is retailers have a constant flow of products, things like returns, shelf pulls, over stocks etc. To profit the stores have to sell these items fast to make room for new merchandise, by offering super low prices they move the stock fast and you (the seller) has tons of room for a markup.
Why Closeout Sales are Preferred as a good source of Merchandise?
Closeouts come from a variety of sources, whether the stock is being piled up and remained on the store shelves for too long, making no way for new stock or else, it also could be because the store is going out of business. Therefore, you end up buying products which are brand new and are from some of the biggest retailers at an unbelievably cheap price.
Another of the biggest sales that forms an important part of closeouts is seasonal merchandise. The sale here is on the stock of off season items. For example, you would not buy an air conditioner during winter or a heater in summer. Therefore, during off season, big retailers and stores come up with a closeout sale to sell out the off seasonal products at an extremely reduced price.
Same goes with the technology industry, as in information and technology, there are constant new developments and inventions happening. Therefore, the older stock accounts as obsolete and calls for a closeout stock sale.
Liquidation Companies Ease Out The Process for Buying Closeouts:
The process of liquidation companies lets you buy anything of any quality ranging from very low quality to brand new products & stock. The reason remains that reputable liquidation companies can act as a great platform for retailers and manufacturers to ease out the process of selling by reaching to a larger audience all in one process.
It’s no wonder that retail chains like Walmart offer their over stock items to liquidate through a closeout sale.
With so many added advantages and much more to offer, closeouts sales make out to be a clear winner. This clears the debate on which is better source of liquidation between wholesale goods and closeout sale.