What you need to know about closeout liquidation

What you need to know about closeout liquidation

Before we go any further into the article, we'll take a little time to explain what is a kohls closeouts liquidation sale. When a business is acquiring new products, more often than not, they will find that they need to make room for these new products. How they'll achieve this is usually by offloading their already existing products through a process called factory closeouts. These products are typically sold below their original wholesale cost and includes goods such as home decor, clothing, footwear, accessories and many more. They are normally divided into 2 groups; job outs and salvage items.

SALVAGE PRODUCTS is closeout merchandise that consists of floor damages, customer returns and samples. Some products may have been damaged due to the mixed assortment nature of closeouts, however, goods damaged does not render them unsellable. This will largely depend on what the product is as well as the extent of the damage it has experienced. The second group of closeout products are the JOB-OUTS. These types of goods are those that were already somewhere on the retail floor but unfortunately did not sell. When this happens, their costs are reduced in order to accommodate a quick sale to a new consumer audience through another retailer. The probability of damage to these types of goods is much lower compared to that of salvage products.

One of the most commonly known factors of closeout purchases is that they are usually bought in bulk and the bulk purchases bought are almost always an assortment of several different items. For example, buying a 200 assorted buy of shirts from ten different vendors in total or purchasing 150 units in total of mixed accessories that include barrettes, bracelets, headbands and so on.

Closeout dealers are usually skilled professionals that have the ability to identify most of what each assorted bulk of merchandise has to offer, however, it's normally still very difficult not to get a little surprised when it comes to the business of purchasing closeout merchandise. Most times you'll get somethings you just didn't expect. For some people, that's a large part of the fun of it all, but for others, this is the part of the buying process where they find themselves getting stuck in. Fortunately for those you that happen to find themselves in such scenarios, there are several great resources available to you that will alleviate many questions concerning buying closeout merchandise. Besides closeout dealers of course, as we've mentioned above, sites such as Merchandise Liquidators specialize in offering their closeout buyers exactly what they're looking for.

Several small and indie retailers usually tend to stay clear from closeout liquidations simply because they don't fully understand the process and also due to the bad publicity it garners sometimes. The best advice when it comes to such things would simply be serious consideration of what works the best for you. However, when done right, factory closeouts can prove to be a very successful way of generating alternative revenue. Generally, all you'll need to do is come up with the perfect game plan. With all that said and done, there's no doubt this is one thing in the retail world that has more success than failure to its name.