Closeout Key Terms

Closeout key terms to know

By Nikki Wheeler

The process of closeout is an important money-making tool in the life of a business, from business start-ups to well-established businesses to the end of life for a business. Buying closeout goods at a great discount can mean the birth of a new business, closing out inventory can help established businesses usher in a new chapter of business and closeout can help a failing businesses minimize losses. When learning about how the process can help your business, keep these basic closeout key terms in mind.

Closeout

Closeout is the process of disposing of obsolete or slow-to-sell merchandise, usually through selling at very low clearance prices, either retail or wholesale in bulk.
Try: Learn more about the closeout process by reading about Circuit City's closeout process at HDGuru.com.

Liquidation

The term liquidation refers to the process involved when a company or section of a company is brought to an end, and the assets, which includes inventory, of the company is redistributed or resold at very low prices to be disposed of as fast as possible.
Try: Read through a detailed explanation of the liquidation process at wiseGEEK.

Overstock

Overstock merchandise is the same thing as overrun merchandise, which refers to the over-production of brand new merchandise by the manufacturer, resulting in more product than is ordered by the retailer; the excess merchandise is then sold at very low prices.
Try: Find more information on what overstock merchandise is and the part that it plays in the closeout process at The Wholesale Room.

Shelf-pulls

Shelf-pulls are merchandise that does not sell in a regular retail setting and needs to be disposed of in order to make room for new merchandise for any number of reasons. This usually happens at the end of the season to make room for new merchandise.
Try: Learn about products that are shelf-pulled and the benefits of investing in them from the Top Ten Wholesale Blog.

Discontinued

Discontinued items are models or versions of a product no longer made by the manufacturer, which need to be sold quickly to make room for newer versions.
Try: Inventory Glossary offers an in-depth definition of discontinued items.

Surplus

Surplus is full-value quality inventory that can no longer be sold at regular price for any number of reasons, such as overstock or discontinuation.
Try: Visit the website of College of Charleston to read more about surplus inventory and the acquisition of it.

Closeout Key Terms