Merchandise in Overstock and Closeouts/Shelf Pulls conditions are pretty similar, but we have separated their definitions below, for a better understanding of each term.
In the liquidation industry, Overstocks tend to be merchandise which was never exposed for sale in a retail store. Such goods are typically from department stores, manufacturers or distributors who simply have excess goods in their warehouse that they need to move.
Department stores regularly clear excess goods from their warehouses and often have “New Overstock” lots for sale. Overstock lots tend to be less assorted then typical customer return loads but are generally in 100% new condition.
Most Overstock items may have some or all of the following characteristics:
- Items are usually 100% retail-ready and in new condition.
- Additional retail/discount or warehouse labels/tags will not be found on the items.
- Usually these items are in their original factory case but occasionally can also be loose-packed.
- Packaging and items tend to be in good condition with no excessive signs of handling.
Closeout/Shelf Pulls Condition
Closeout/Shelf Pulls lots consist of goods that have been displayed for sale in a store showroom or online but were never purchased by a customer. They are usually excess inventory from store shelves, and can be considered to be in good selling condition.
Most Closeout/Shelf Pulls goods have some or all of the following characteristics:
- Most items may still have their original retail pricing stickers/tags on them.
- Items may also have additional retail discount tags on them.
- A percentage of the items may be out of box or in open boxes.
- Exterior packaging is often in less than perfect condition.
- Item may show small signs of handling.
- A percentage of the items may be in-store display units or samples.
- Discontinued goods.
- Seasonal goods.
- May be defaced/de-labeled (inner labels or tags removed to prevent return to the original store).
In most cases, merchandise in shelf pulls condition require little or no work compared to customer returns, in terms of reconditioning and repairing, but you should always do some examining as well as cleaning off potentially dusty items and removing their price tags (if necessary) before reselling these items.