We often remind our clients that no retailer or brand is immune to the challenge of excess inventory—it’s an issue everyone faces. Luckily there are many buyers of excess inventory, but the challenge lies in finding excess inventory buyers who are a good match for your inventory. Factors such as brand recognition, quantities, assortments, and packaging all play a role.
In this article, we’ll explore these different avenues and discuss which ones make the most sense based on your business needs, helping you find the best solutions for handling excess inventory. One of the biggest mistakes we find is when inventory owners reach out to us frustrated by their lack of response from buyers, only to find out they have been looking at the wrong excess inventory buyers.
Let’s start by going over the most common overstock inventory buyers. Only once you better understand the best fits should you start your outreach. Below, we will discuss the outlet, when to use them, and the benefits.
Online Marketplaces
What is an Online Marketplace?
An online marketplace is a platform where multiple third-party sellers can list and sell their products directly to consumers. Well-known examples include eBay, Amazon, and Alibaba. These platforms give businesses a broad reach to millions of buyers worldwide, offering a convenient and efficient way to offload excess inventory. Sellers can list individual items or large quantities, with each platform providing tools for managing transactions, shipping, and customer service.
Online marketplaces also offer features like auctions or fixed-price listings, allowing businesses to choose how they want to sell their excess stock.
When to Use Online Marketplaces
Online marketplaces are particularly effective when a business has small quantities of various items rather than large amounts of a single product. For instance, if a retailer is dealing with excess inventory from various product lines, such as electronics, apparel, or home goods, each with limited quantities, platforms like eBay or Amazon allow them to list each item individually.
This flexibility makes online marketplaces an ideal solution for moving mixed and diverse inventory. Sellers can target specific buyers who are searching for unique or discounted products rather than needing to find bulk buyers.
Benefits of Selling Excess Buyers on Online Marketplaces
Utilizing online marketplaces to sell excess inventory offers several benefits. First, these platforms have a massive global audience, increasing the chances of quickly selling off unwanted stock. Additionally, marketplaces like Amazon or eBay provide built-in infrastructure, reducing the need for businesses to manage the sales process themselves.
Sellers benefit from secure payment processing, shipping tools, and customer support features that streamline the transaction. Another key advantage is flexibility—sellers can adjust prices, set auctions, or offer promotions to increase sales, maximizing the return on excess inventory without committing to a single bulk buyer.
Discount or Off-Price Retailers
What are Discount or Off-Price Retailers?
Discount or off-price retailers, such as TJMaxx, HomeGoods, and Marshalls, specialize in selling branded products at a lower price than traditional retail stores. These retailers purchase excess inventory, overstocks, or out-of-season items from brands and sell them to consumers at significant discounts. They operate by acquiring products in bulk and distributing them across multiple locations, allowing brands to offload large quantities of inventory.
These stores are known for offering customers name-brand products at a fraction of the original cost, and they thrive on constantly rotating inventory to create a treasure-hunt shopping experience.
When to Sell to Discount Retailers
Selling to discount retailers is an ideal solution when a business has larger quantities of excess inventory, typically ranging from a few hundred to a few thousand units of the same item. These retailers focus on brands that typically have high recognition and quality. They are all about giving customers that high-end product, but at a significantly lower cost.
Because these retailers have multiple locations and a consistent need for new inventory, they are well-suited for absorbing larger volumes of stock. However, working with discount retailers often comes with specific requirements. Brands must meet logistical expectations, such as handling returns and agreeing to extended payment terms. These factors can impact cash flow and inventory management, so businesses need to weigh the benefits against the operational complexities when selling to off-price retailers.
Benefits of Selling to Discount Retailers
Selling excess inventory to discount or off-price retailers can benefit businesses. First, these retailers provide an opportunity to quickly move large quantities of products, which helps clear warehouse space and reduce storage costs. Since they operate on a bulk-purchasing model, brands can offload inventory that might otherwise sit unsold or depreciate in value.
Additionally, selling through off-price retailers allows companies to reach a different customer segment—price-conscious shoppers who may not buy from the brand at full retail price but are attracted to discounted goods. This helps brands recover value from excess stock while maintaining broad market exposure.
Closeout Retailers
What are Closeout Retailers?
Closeout retailers, such as Ollie’s, Big Lots, and Job Lot, specialize in purchasing and reselling inventory that’s been discontinued, overstocked, or marked for liquidation. These stores buy products at deeply discounted prices from manufacturers or retailers and then pass the savings on to their customers.
Unlike traditional retailers, closeout stores typically sell a wide variety of products, from household goods to electronics, at steep discounts. Their customer base is driven by bargain hunters looking for value rather than brand prestige, making these stores ideal outlets for moving large amounts of excess or unsold inventory without needing strong brand recognition.
When to Sell to Closeout Retailers
Closeout retailers are well-suited for selling larger quantities of inventory, typically ranging from a few hundred to a few thousand units of each item, due to their extensive networks of physical locations. These retailers are an attractive option for brands that don’t have significant recognition or for product lines that aren’t necessarily high-end.
Customers shopping at places like Ollie’s or Big Lots are looking for great deals rather than luxury products, making it a great fit for moving products that might not appeal to traditional retail outlets.
However, brands should be aware that closeout retailers often have strict requirements, including managing returns and agreeing to extended payment terms, which can impact immediate cash flow and logistical operations.
Benefits of Selling to Closeout Retailers
Selling excess inventory to closeout retailers offers several advantages for brands. First, these retailers can quickly absorb large quantities of stock, helping businesses clear warehouse space and avoid further depreciation of their products. Since closeout buyers are less focused on brand reputation, less well-known brands or discontinued products can still recover significant value by selling through this channel.
Additionally, closeout retailers help brands minimize losses on unsold inventory by offering immediate sales opportunities, enabling a quick turnover of excess goods. This method can also reduce the environmental impact of unsold products by keeping them out of landfills and in circulation.
Inventory Liquidators
What are Inventory Liquidators?
Inventory liquidators, such as B-Stock and Overstock Trader, specialize in buying large volumes of excess, discontinued, or overstock products directly from manufacturers and retailers. These companies typically purchase inventory at a steep discount and then resell it to various buyers, including small businesses, resellers, or secondary markets.
Liquidators handle everything from consumer electronics to clothing and household goods, offering businesses a fast way to offload unsold stock. Unlike traditional retail outlets, liquidators don’t focus on brand recognition or retail-ready packaging, making them an ideal solution for moving large quantities of unsellable or outdated items.
When to Sell to Liquidators
Selling to inventory liquidators is a good choice when a business has large quantities of excess stock, often ranging from a few hundred to hundreds of thousands of units. This is particularly helpful for businesses that need to clear out inventory quickly without dealing with the logistics of customer returns. Liquidators typically offer cash upfront, making the transaction fast and simple.
For brands dealing with liquidation sales, obsolete products, or failed product launches, liquidators provide a reliable option to recover some value without the need to manage returns or extended payment terms. This no-hassle approach makes them a preferred choice for companies looking to liquidate stock with minimal complications.
Benefits of Selling to Liquidators
One of the key benefits of working with liquidators is the quick turnaround they offer. Since they provide cash upfront and don’t require brands to meet complicated conditions, liquidators are ideal for businesses that need immediate inventory clearance. For eCommerce brands in particular, liquidators don’t demand retail-ready packaging or UPC labels, making it easier to sell items that don’t meet traditional retail standards.
Additionally, because liquidators purchase inventory in bulk, businesses can offload large quantities quickly and efficiently, helping to free up storage space and improve cash flow. This streamlined process, without the need for returns or lengthy payment terms, makes liquidators an attractive option for brands seeking a fast and straightforward solution for excess stock.
Closeout Wholesalers
What Are Closeout Wholesalers?
Closeout wholesalers acquire large volumes of excess, discontinued, or overstocked goods directly from manufacturers, retailers, or liquidators and sell them in bulk to other businesses. Unlike closeout retailers that cater to individual consumers, closeout wholesalers focus on supplying products to other discount retailers, distributors, and resellers.
These wholesalers specialize in offering goods at significantly reduced prices, which allows businesses to purchase inventory at lower costs and then resell them at a profit. Their inventory can range across various product categories, making them a versatile solution for businesses looking to stock diverse merchandise.
When to Sell to Closeout Wholesalers
Closeout wholesalers are a great option for manufacturers and retailers when there’s a need to move large quantities of inventory fast. If your business is dealing with overproduction, discontinued product lines, or needs to liquidate assets, selling to a wholesaler offers an efficient way to clear out stock. Closeout wholesalers are particularly valuable for businesses that want to quickly offload inventory without the need to market or distribute products directly to consumers.
Selling in bulk also reduces the need for complex sales operations, making it a practical choice for those looking to streamline the process of clearing surplus goods. Also, many closeout wholesalers will pay cash upfront, which is seldom applicable for large national closeout retailers.
Benefits of Selling to Closeout Wholesalers
Selling to closeout wholesalers provides several key advantages. First, it enables manufacturers and retailers to quickly move large inventory quantities, freeing up storage space and reducing carrying costs. Since closeout wholesalers are accustomed to handling large transactions, they offer businesses the ability to liquidate stock efficiently without having to deal with the logistics of individual sales.
Additionally, by partnering with a wholesaler, businesses can recover some of their investment in unsold goods while avoiding the expenses associated with direct marketing or consumer-facing channels. This also helps reduce the environmental impact of excess inventory, keeping products in circulation rather than contributing to waste.
Now that we’ve identified the buyers for various types of excess inventory, let’s go over how we at Overstock Trader approach outreach. Thorough research and investigation are key. We’ve found certain methods more effective when reaching out to buyers. Here are a few examples:
Company Websites
Many companies make it easy to find surplus inventory buyers, often categorized by type. After all, it’s in retailers’ best interest to access quality excess inventory so they can streamline the process. A great example is Ollie’s Discount Retail, where you can find a direct link to their inventory on their homepage.
Then, scroll down to locate the specific buying department you need. Here’s the link for Ollie’s Buyers.
Sales Navigator
LinkedIn Sales Navigator simplifies the process of finding buyers for discount retailers by offering advanced search filters, enabling you to target decision-makers in relevant industries. You can search by job title, company, or industry, making connecting with the right people easier. Additionally, the tool provides insights into company activities and potential leads, helping you tailor your outreach effectively.
We searched for buyers using filters such as title and company name. My putting in the search criteria, we found over 600 buyers at TJ Maxx.
Partner with inventory liquidation service companies.
Instead of managing outreach and ensuring competitive pricing themselves, many brands are now turning to inventory liquidation service companies to handle the process. These services specialize in connecting with excess inventory buyers, saving brands the time and effort to find the right buyers and negotiate deals. By outsourcing to liquidation experts, companies can streamline the sale of surplus
products, maximize returns, and focus on their core operations while leaving the complexities of pricing and buyer outreach to the professionals. This approach also helps brands move inventory faster and more efficiently.
Attend Trade Shows
Attending trade shows like ASD Market Week and The Closeout Show offers a prime opportunity to network with excess inventory buyers. These events bring together key players in the discount retail and liquidation industries, making it easy to meet potential buyers face-to-face. You can showcase your products, build relationships, and gain insights into current market demands. Connecting directly with buyers in a focused environment increases your chances of striking deals and expanding your network for future sales opportunities.
Want to know the value of your inventory?
Conclusion
Now that we’ve reviewed excess inventory buyers and identified the types of outlets best suited for your surplus, along with proven methods employed by companies like Overstock Trader, you’re equipped to make informed decisions. With this knowledge, you can optimize your outreach efforts and maximize the value of your overstock. Start leveraging these strategies today to efficiently manage and profit from your excess inventory!
FAQs
Who typically buys excess inventory?
Excess inventory buyers include discount retailers, liquidation companies, online marketplaces, and niche brokers who specialize in surplus goods. Each type of buyer has distinct requirements and caters to different markets. Therefore, it’s crucial to align your inventory with a buyer whose needs and distribution channels closely match your product type and brand goals.
How can I determine the right buyer for my excess inventory?
To identify the ideal buyer, consider several factors: the type of product, its condition, the quantity available, and the target market of the buyer. For example, liquidators typically seek bulk deals at lower prices, while discount retailers often prioritize high-quality items that appeal to their customers. It is essential to align these criteria with the buyer’s needs to ensure a successful sale that maximizes value and protects your brand.
What are the benefits of selling excess inventory to specialized buyers?
Selling excess inventory to specialized buyers provides several important benefits. First, it frees up valuable warehouse space. Second, it helps recover cash flow and reduces ongoing storage costs. By selling unsold products to targeted buyers, you can generate revenue from items that would otherwise go to waste or collect dust in the warehouse, maximizing the overall value of your inventory.
How can I decide between discount retailers and liquidators?
Discount retailers work well for high-recognition brands with large quantities per single SKU, while liquidators are ideal for quickly selling bulk stock without brand requirements or retail packaging. They also often pay on better credit terms, and take larger assortments of products and SKU quantities.
What should I consider before selling to inventory liquidators?
Before selling to inventory liquidators, consider the volume of excess stock you have and the speed at which you need to sell it. Liquidators typically offer cash upfront and handle large quantities efficiently, but ensure you understand their terms regarding returns and payment timelines.