Closeout Warehouses Can Be Great Outlets For Store Returns


Closeout warehouses can be great outlets for store return products, as well as overstock and surplus merchandise. The business model is relatively simple, although it's still plenty of hard word to run this type of business. You will need warehouse space, plenty of space to open up the pallets and lay out the boxes, and a good sense of how much to charge for items so that you are offering true closeout prices, while still ensuring that you are earning a decent profit on your sales.

It is essential to running a closeout warehouse that you always have a steady flow of new merchandise arriving, since your customers are going to be attracted to your business by both the variety of merchandise that you carry, and the prices that you charge. The reason why variety is important is because you want your customers to shop both for their basic needs, and for the opportunity to find a unique item that they might not necessarily must have, but would enjoy having.

Ensure that your closeout prices are below those of local discount stores, as well as popular online retailers such as Amazon, and national retailers such as Walmart. 

You can purchase merchandise for your warehouse by shopping through online auction platforms such as,, and by attending going out of business sales and brick and mortar auctions. You can also purchase overstock and store return pallets from department stores, and wholesalers who specialize in these types of merchandise pallets.

OJI Closeouts in Cudahy, California, is an example of a store that is utilizing the closeout warehouse business model:

Below is a short video which I created to talk about wholesale warehouses. Enjoy!