Purchasing Factory Closeouts

Another question from a faithful community member writes:

Dear Robert,

I met a guy other day who is involved in closeout business from china, India, Bangladesh etc. He told me he gets all closeout offers from different countries. He was reluctant to give away the information,which is understandable. Can you please guide me as to how can I register with international factories who sell excess inventories, overstock/closeouts? Your input in this matter would be highly appreciated.

There are plenty of manufacturers overseas who will sell off closeouts and some of the best offers come as a result of canceled import orders!

Let me explain a little further:

Various importers as well as large chain store buyers will contract with overseas manufacturers to produce a line of items often with strict completion deadlines placed by the importer. If the factory cannot meet rigorous guidelines placed by importers, often goods will go unsold and most of the time can be purchased inexpensively by you and me.

Another example would be a manufacturer who completed an order and then prepared it for shipment by placing in a freight container only to never hear from the importer again!

When this occurs a manufacturer must quickly recover lost money by liquidating this stock, often at a loss.

How do you find deals like this?

Your business needs exposure, without contacts you are dead in the water. One of the best ways to do this is through advertising; build a simple website explaining the nature of your business and the fact that you are involved with importing and wish to purchase loads of closeouts and manufacturers overstock. Let the contacts come to you with this method. Once you have a virtual business card (website) you then can connect with The IMASD, which is a large association of surplus dealers. Leads come in daily from this directory.

Another way to accumulate contacts would be to take advantage of the services of Global Sources. This company connects importers with manufacturers and could prove to be an invaluable resource for sourcing manufacturers closeouts. Global sources offers supplier catalogs that allow you to contact prospective factories to develop buying relationships with. The catalogs cover multiple categories of merchandise. I would contact as many manufacturers in your chosen niche and let them know you are interested in closeouts, odd lots and canceled orders.

Global Sources helps buyers reduce risk when sourcing from Greater China and Asia by providing the following supplier verification services:

Verified Suppliers: Global Sources visits each featured supplier personally – 3 or more times. Each supplier has shown its commitment to export, plus, we verify all information possible before we offer it to you

Credit Checks: Using Global Sources you are able to access the most comprehensive credit reports – up to 13 key financial and legal areas – provided by Verify Screening Solutions and Sinotrust

Supplier Capability Assessments: You can get supplier assessments across 12 categories provided by Bureau Veritas, one of the world’s most-trusted certification authorities.