What is the closeout business?
The word closeout can often be associated with excess inventory, obsolete, and wholesale. While many of these words do play a part in the definition of closeout as a whole, a large piece of the story is missing. Running a closeout business is not just buying goods and selling them to large supply chains. It takes a community and team to effectively operate within the secondary market. The process is much like a circle, a never-ending cycle with all components being crucial to obtain the goal. The closeout business is a multi-billion dollar industry and acts like the backstage crew when putting on a play. Like the stage crew, behind the scenes closeout distribution plays a quiet but important role in providing off-price retailers with their inventory.
Does a closeout mean the product is bad or used?
An item that classifies as a closeout is not necessarily damaged or inadequate. This assumption that all products that go through the closeout stage are damaged is a common misconception. Additional factors that lead to items becoming closeouts are package changes or simply an excess of inventory. Just because an item is close-dated or slow-moving doesn’t mean it’s bad or unsalable, it just makes it a great opportunity for consumers to get a great deal.
The Story of RKS Sales Group, Inc.
RKS Sales Groups showroom may appear as a child’s dream, filled with bright colors, candy, and toys. In actuality, the inventory in the showroom are final products all with backstories of the hard work and effort that go into what makes a closeout business. There is no quantity or inventory we’re afraid to buy so don’t be surprised if we buy a million units of one item but only 500 of another. If the deal is right and we can offer our customer a great closeout, we’ll buy it! So, once a deal has been made with RKS’ amazing sales associates, the shipping process begins. Products are stored in third party logistic locations (3PLS) and purchases are shipped to these locations then received. Once an item is sold it’s gets put in as an order with the 3PL and they prepare the order to ship. RKS then ships the products to customers warehouse facilities then the product makes their way to the retail shelf for purchase by the consumer. All products RKS purchase get sold and shipped to regular off-price retail stores that most people know and love. Discount Stores all over the United States. It’s up to the customer to track down our amazing new deals in common regular off-price retail stores.
Products on RKS display shelves are examples of inventory that is awaiting sale and searching for the ideal retailer. They also serve as reminders of the many steps one product must take to reach the retail industry’s ultimate stage. One small closeout bought and sold is one large step for customers worldwide to get a great deal.