How To Make Money Buying From Closeout Stores
What are closeout stores? A closeout store is a retail establishment that focuses on merchandise from sales from manufacturers and brands, of overstock, reduction, or off price inventory, slightly irregular products, and distressed goods. It could be that a retailer was shutting down for bankruptcy, because of over-selling, a bad fire, over ordering, or simply because of moving. Whatever the reason, the items are then purchased by a closeout store, and placed in a manner that they can be quickly and easily sold to the public. You can potentially make a good amount of money by purchasing products at closeout stores, and reselling the through your store, your website, or on Amazon and eBay.
In days gone by manufacturers and brands might have held on to their merchandise, and tried to sell it themselves at a steep discount. Merchandise that was not bought immediately would stay in the back of warehouses, and there weren't nearly as many people interested in it. This meant that it would take a lot longer to sell the items. Because of the rate of production, and the need for focusing on their business, manufacturers and brands would rather quickly liquidate their products, and continue to focus on their own businesses.
Today, many closeout stores operate much like traditional stores, and buy discounted generic products from their suppliers. They still sell off overstocked or otherwise unsold inventory. However, the methods of operation have changed. Instead of relying on a network of jobbers to find new closeouts and draw customers in, many closeout stores now buy from established suppliers. The best deals, in terms of resale potential, are at retailers that focus on searching for and buying genuine closeout deals.
These businesses have developed sophisticated ways to find their items. They search through auction sites, such as Liquidation.com, Bstock.com, and even on Amazon. They have a rolodex of manufacturers, designers, and brands, who they contact on a regular basis to see what merchandise they would like to liquidate. These closeout retailers will also attend going out of business auctions. Then they compare prices online to determine what their best deal might be. Once a shipment is received by the store, they will start marketing the new items to their costumers. Some of my favorite closeout retailers include Amazing Savings and Marshalls, although they also purchase regular discounted merchandise. Back in the day there were two great closeout retailers, Odd Job and Job Lot, where you could find some amazing items priced way below the regular wholesale prices. Other popular closeout stores in New York include, Closeout Connection, Lot-Less Closeouts, and Jacks 99 Cent Stores.
While you can find great bargains, remember, just because the price is low, does not mean that you are getting bad quality, or on the flipside, that you are buying an item with a high resale potential. Always do your research before purchasing an item. If you sell on Amazon, use an Amazon sales app to determine what your profitability will be on an item, assuming that you are ungated and can sell it through the FBA or FBM program. If you are exporting your items, as many of customers do, you should use your WhatsApp to send pictures and videos of the items to your customers, this way you can determine the sales potential of an item.
One of the most convenient ways to search for what are closeout stores is to use an on-line store locator. Many sites allow users to enter a zip code or state and they will give you a list of closeout stores in your local area. If you prefer to do business on-line, be careful that you are using a reputable site. Read all the fine print before entering your personal information.
Another option for what are closeout stores is to check out your favorite auction sites. Many times these stores post items that are going to be closeout at very low prices. Be prepared to bid on these items, but if you are a bargain hunter you have a good chance of getting a bargain. Just be careful not to spend more than you can afford, or to get carried away in the bidding frenzy.
A final option for what are closeout stores is to use your newspaper. Many times there will be a classified section where you can find great bargains. This is especially true in the winter when people need to put their extra items up for sale. You will have to exercise some caution here as well. Check for authenticity and make sure the price is not too high. Craigslist is also a great resource for finding stores that are liquidating or closing out merchandise.
Be careful of closeout stores that sell used items. Often these stores will sell you items that are broken or are defective.
It is possible to contact these stores to try and arrange a better deal, especially if you are ready to buy in volume, or to buyout the entire inventory of a given product. Introduce yourself to the manager, or owner, of the stores, and ask them to contact you when they have merchandise that they can offer you at extra low prices. Closeout stores, especially really busy ones, are always bringing in new merchandise, so they will be happy to offer you extra savings if it means that you can help them move out their merchandise.
Friendly negotiating is important, and essential, for people who are shopping for resale at these stores.