How do closeout liquidators sell excess inventory?
Closeout liquidators can liquidate their bulk inventory in various ways and methods. Some of the ways through which closeout liquidators sell the excess inventory are listed below.
- Auctions: Auctions are among the most popular and easier way of selling excess inventory to potential customers. In the auctions, bids are made regarding the bulk merchandise. Closeout inventory is not sold in small quantities, instead, they are sold in bulk lots. There are two kinds of bids; an open bid and a sealed bid. An open bid is one in which everyone will know how much the other person is bidding and may cause a bidding war where every closeout buyer will try to out-bid his fellow inventory liquidator. While a sealed bid is where the offered price of each closeout buyer is a secret and will cause competing closeout buyers to pay more as they are afraid of losing the purchase.
- Exporting Closeout Merchandise: Exporting closeout merchandise is a great method of enhancing revenue and profits for the closeout liquidator as he gets a better price for the excess inventory than he could achieve in his home country and is the better option.If the closeout liquidator sells the excess inventory in the presence of competing products in the home market, the price he will achieve for that merchandise will be lower as he has to compete with other sellers. However, if the closeout liquidator exports the closeout inventory to other countries, the same closeout inventory would not face the same competition and command a higher price. This closeout merchandise would be considered unique and more desirable in the overseas market.
- Online Selling: Online Selling is an excellent option, where the closeout liquidators can create a website and upload all the products they are offering. They can attach the product description, pictures, and benefits along with the price. Closeout buyers can review the various product offers and buy either in small quantities or in bulk. Moreover, the closeoutliquidators can ship the closeout merchandisedirectly to the closeout buyer’s own warehouse or drop ship to their end customers.
- Amazon.com: Closeout liquidators can also set up an account with Amazon and sell directly to the 100,000 + customers that visit Amazon looking for a specific product. By selling on Amazon a closeout liquidator has access to numerous customers that he ordinarily not have access to. The closeout liquidator pays Amazon a small percentage of the selling price for the privilidge of being exposed to Amazon’s numerous customers worldwide. The greatest benefit in selling on Amazon is that Amazon can process credit card payment and shipping to the closeout buyer on behalf of the merchandise liquidator.