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Let us start with understanding what exactly is overstocking. Overstocking occurs when stores and retailers purchase more products than they can sell which leaves them with too much of stocks and ends up affecting the profitability of the store. Who does not love walking down the aisles of their favorite stores? The variety of colors, sizes and so many other options to choose from! So, what exactly happens to the stocks in the inventory that do not sell out? The overstock inventory offers huge opportunities for resellers and often the stocks go to wholesale liquidation stores in order to be resold.

An overstock inventory is an inventory that has the stocks that were not able to be sold within that time period that was required at the retail stores. Because these products were never purchased by the customer, these products are not defective at all and are not even returns but they are definitely a bane for retailers because they face a loss now, which is why wholesale liquidation stores are a blessing for these retailers and companies.

So, what exactly happens to the stock in the overstock inventory?

The easiest and shortest way of explaining this would be that the stock often ends up at wholesale liquidation stores. Various products like furniture, clothes, toys and so much more also fit into the categories of products in the overstock inventory. Retailers then send this stock to the wholesale liquidation stores in order to liquidate them or else they would just take up the space in the inventory and prevent new stocks from arriving.

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Does the quality of the products found in the overstock inventory which are sent to the wholesale liquidation stores, are inferior in any way?

These products that are not sold, and end up as products in the overstock inventory are products that are of great quality and in no term inferior. They are sent to wholesale liquidation stores because it profits both the parties involved. Wholesale liquidation stores are basically suppliers who have a huge selection of overstock inventory goods in their warehouses which they have purchased directly from these retailers.

Who can gain access to these overstock inventories and who are they advantageous to?

The products in overstock inventories are advantageous to wholesale liquidation stores who purchase products in bulk and these stocks are often provided and available in the manufacturing facility seals, which also shows that they are new merchandise that are not used or touched. The reselling of the products that are found in an overstock inventory is not something new, and is actually a popular and widespread method of ensuring that your store does not face too many losses because of your misjudgments. The whole process is fast, easy and also saves money. 

If you are someone who is looking for various ways to create a business, wholesale liquidation stores are quite popular and they are quick, efficient and not to forget to mention, extremely profitable. You can find stock from various overstock inventories that belong to the big name giants as well, and purchase them at subsidised rates. 

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How to purchase products from an overstock inventory?

There are a number of platforms and services that allow wholesale liquidation stores to buy products from overstock inventories in bulk, either allow you to purchase the products directly from the retailers or help in acting as an intermediate between both the parties involved. There are also private auctions that are held which help the retailers to auction off their excess products in their overstock inventory and to various wholesale liquidation stores at a fraction of the retail price they would have charged their customers. When these auctions are held, this also gives the buyers the confidence that they are purchasing products right from the source as well as that they will also be purchasing quality products. It also helps them understand the market better as it gives these wholesale liquidation stores the freedom to see what other buyers are bidding and also not pay more than what they are paying.

Overstocking often occurs when store owners misjudge the consumer demand and order excess, that fear of always running out of stock, ineffective marketing of the products and poor inventory management being few of the reasons on why an overstocked inventory is made. But, a lot of these products are sold to wholesale liquidation stores which purchase these products at a lower cost and help in making sustainable choices for the future.