Closeouts Are No Match for Surplus Merchandise Profit Margins

Entrepreneurs, vendors and retailers, online and offline are always on the lookout for new sources of high quality merchandise that can be acquired at the lowest price possible opening the door to potentially high profits at resale.

These buyers are looking for merchandise to resell in a variety of venues such as::

  • ·Offline shops and stores
  • ·eBay and other auction sites
  • ·eCommerce stores online
  • · Flea markets
  • ·Swapmeets
  • · Individual websites

This is not a complete list but simply an example of the types and variety of venues that need and want merchandise at the lowest price possible..

A question that often arises is whether it better to focus on buying and reselling closeout or surplus merchandise. In order to answer this question we should take a moment and examine the difference between these types of merchandise

What is Closeout Merchandise?

Closeout merchandise is nothing more than merchandise that is on sale or in the process of being discontinued. It is merchandise that is discounted below its normal cost so that it will sell quickly, giving the retailer the opportunity to bring in new stock. Some retailers even advertise that they sell “closeout merchandise.”

What is Surplus Merchandise?

Surplus merchandise is excess inventory that a business has over and above what it needs. This is not the same as a closeout. Beyond merely being on sale this is an inventory that can no longer be used by the seller for any of a number of reasons such as: product changes, packaging changes, and design updates. In effect it has become unwanted merchandise.

As excess or unwanted merchandise it may start to collect dust in a warehouse. The owner needs to get it out of the warehouse to make room for new merchandise that has in effect replaced the surplus merchandise.

In such a scenario, the owner may decide that it is time to sell the inventory as surplus at rock bottom prices just to get it out of the warehouse and make space,.

Opportunities Exist to Sell Retail and by the Truckload

Savvy surplus merchandise liquidators know how to take control of entire inventories of unwanted surplus merchandise for mere pennies on the dollar for resale at substantial profits by the truckload to stores, or on a retail basis in their own business

Surplus Liquidators Provide a Needed Service

In effect, the surplus merchandise liquidator will be helping the owner get rid of an inventory headache and convert it to cash. By providing this needed service and helping the owner clear out a warehouse, the surplus liquidator helps the wheels of the economy moving as new goods can be delivered.

The surplus merchandise can now be sold to hungry buyers looking for good deals online and in stores producing profits and opportunity.

Keep in mind that there is nothing wrong with the merchandise which is now classified as surplus. It is not defective, broken, damaged or returned merchandise. It is retail packaged and ready to go on the shelf of a retail environment or posted on a website for sale.

Closeouts May Become Available for Liquidation as Surplus… in Time

On occasion closeout merchandise will become, in time, available as surplus merchandise.

Keep on the lookout for warehouse sales where a seller needs to liquidate remaining closeout merchandise at the conclusion of their sales. Profitable opportunities may exist in such scenarios provided that you agree to a surplus liquidation price and not a simple discount at the end of a sale. This is critical so be sure that you understand the tenets of liquidating before making any buying decisions.

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