How to Make Money by Selling Products from Outlets: A Comprehensive Guide


How to Make Money by Selling Products from Outlets: A Comprehensive Guide


In today's competitive business landscape, finding lucrative opportunities to generate income is essential. One increasingly popular and effective way to make money is by selling products from outlets. Outlets refer to retail stores or centers that offer discounted merchandise directly from manufacturers or distributors. They provide a cost-effective means for consumers to purchase quality products, making them an attractive avenue for entrepreneurs to explore. In this comprehensive guide, we will delve into the steps, strategies, and resources required to succeed in the outlet retail business.

Understanding Outlet Retailing
Outlet stores are retail establishments that sell discounted merchandise from various brands. These products may be end-of-season items, overstocked inventory, or items with slight defects. Outlet stores offer attractive prices, which draw customers looking for bargains without compromising on quality.

The outlet retail industry has seen remarkable growth over the years, and the trend is expected to continue. According to a report by Statista, the global outlet market revenue amounted to $27.85 billion in 2019 and is projected to reach $39.24 billion by 2023. This potential for growth makes it an enticing opportunity for aspiring entrepreneurs.

Conducting Market Research
Before jumping into the outlet retail business, thorough market research is crucial. Understanding market trends, target demographics, and competition will help you make informed decisions and tailor your product offerings accordingly. Here are some essential steps in conducting market research:

a. Identify Potential Locations: Research potential locations for your outlet store. Consider factors such as foot traffic, nearby competitors, and accessibility for customers.

b. Analyze Target Audience: Understand the demographics, preferences, and buying behavior of your target audience. This will help you curate a product assortment that resonates with your potential customers.

c. Study Competitors: Analyze existing outlet stores in your chosen location. Learn from their successes and failures, identify gaps in their product offerings, and devise strategies to differentiate your business.

d. Evaluate Demand and Trends: Stay updated on industry trends and consumer demand for different product categories. This will guide your inventory decisions and ensure you cater to popular preferences.

Selecting Products for Your Outlet Store
Choosing the right products is fundamental to the success of your outlet store. The key is to strike a balance between popular products and competitive pricing. Here are some tips for selecting products:

a. Source from Reputable Brands: Partner with reputable brands to ensure the quality and authenticity of your products. Establishing trust with customers is essential in the outlet retail industry.

b. Focus on High-Quality Items: Despite offering discounted prices, prioritize quality products to build a loyal customer base.

c. Consider Product Diversity: Offer a diverse range of products to cater to various customer preferences. This may include clothing, accessories, electronics, home goods, and more.

d. Stock Seasonal Merchandise: Align your product offerings with the seasons and holidays to attract more customers.

Sourcing Products for Your Outlet Store
Once you've decided on the product range, the next step is sourcing merchandise. Here are some common ways to procure products for your outlet store:

a. Direct from Manufacturers: Reach out to manufacturers directly and negotiate deals to buy excess inventory or end-of-season items at discounted prices.

b. Work with Distributors: Establish partnerships with distributors who can offer you a wide range of products at competitive rates.

c. Liquidation Sales: Attend liquidation sales to purchase inventory from businesses that are closing down or undergoing changes.

d. Wholesale Marketplaces: Utilize wholesale marketplaces like Alibaba, SaleHoo, and Global Sources to find suppliers and manufacturers.

Setting Up Your Outlet Store
Choosing the right location and setting up an appealing store layout are critical aspects of the outlet retail business. Here's what you need to consider:

a. Location: Select a location that attracts your target audience. High-traffic areas like shopping malls or busy streets are ideal.

b. Store Design: Create an inviting and well-organized store layout that allows customers to browse products easily.

c. Visual Merchandising: Use eye-catching displays and signage to highlight discounts and attract customers.

d. Point of Sale (POS) System: Invest in a reliable POS system to manage inventory, track sales, and process transactions efficiently.

Marketing and Promotion
Marketing plays a pivotal role in driving customers to your outlet store. Implement a well-rounded marketing strategy to increase visibility and attract foot traffic:

a. Social Media: Utilize platforms like Facebook, Instagram, and Twitter to engage with potential customers, share promotions, and showcase your products.

b. Email Marketing: Build an email list and send out regular newsletters with exclusive offers and discounts to incentivize repeat visits.

c. Loyalty Programs: Create loyalty programs to reward frequent customers and encourage brand loyalty.

d. Collaborations and Events: Partner with other local businesses or host events to increase your store's visibility and attract new customers.

Offering Exceptional Customer Service
Customer service can make or break your outlet retail business. Focus on providing a positive shopping experience to build a loyal customer base and generate word-of-mouth referrals.

a. Knowledgeable Staff: Train your staff to be knowledgeable about your products and provide excellent customer assistance.

b. Easy Return Policy: Offer a hassle-free return and exchange policy to build trust with customers.

c. Customer Feedback: Encourage customers to provide feedback and address any concerns promptly.


Selling products from outlets can be a profitable venture when approached strategically. By conducting thorough market research, sourcing quality products, setting up an attractive store, implementing effective marketing strategies, and providing exceptional customer service, you can increase your chances of success in the outlet retail business. Stay adaptable and continually assess industry trends to remain competitive in this dynamic marketplace.

Resources and Sources:

Global Sources: