Retailers often sell surplus, overstock, or out-of-season merchandise in bulk by truckloads to liquidators, quickly converting these inventories into cash. For retailers, holding onto these goods can be costly because:
The merchandise deteriorates with age,
It occupies valuable space in distribution centers,
And it ties up capital.
To address these challenges, most retailers sell these excess goods by pallet or truckload, a process known as liquidation. About 95% of this surplus stock is sold in the secondary market, often at prices below the retail MSRP.
You can access these discounted prices when you buy closeouts from a Liquidator company like Orotex.
We are not brokers; all of our merchandise is stored in our warehouse in Miami, Florida.
Reverse logistics companies bid for direct contracts with retailers to acquire liquidated goods at a fraction of their retail value. After purchasing the merchandise, closeout liquidators resell it to secondary retailers, wholesalers, or other resellers by pallet or truckload. These resellers then offer the products to eager customers seeking top-quality merchandise at a lower price.
Clearance may seem negative, but it’s an excellent way to make and save money while salvaging merchandise that might otherwise go unsold. Merchandise closeout takes advantage of the vast overstock, customer returns, or items sold during store closings.
Since this merchandise is purchased well below retail price, it can be resold in the secondary market at a lower price, ultimately benefiting customers. Keep reading to learn more about merchandise liquidation and how it can benefit you and your customers.