Overstock Pallets

Written by Yvette Dubel
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Overstock in production companies usually results from huge orders not being sufficiently sold. Overstock, by definition, is excess inventory and should be first quality, not damaged or returned goods. It is far better to sell these goods off at a discount, than let them sit and take up valuable space in the warehouse.

The Birth of Overstock Pallets

Companies are frequently left with billions of dollars of excess inventory. They can be forced to sell these overstock pallets for several reasons. One, products must be taken off of shelves and displays to accommodate newer merchandise.

Secondly, fluctuations in financial positioning or shifting strategy can result in cancelled purchases. Also, accounting concerns can push companies to reduce inventories. The final result is they are forced to sell overstock pallets for less money and at a faster pace. It seems that most businesses need to liquidate two to five percent of their products as surplus or overstock.

Overstocks are typically purchased at a substantial markdown, compared to other first quality products. These reductions in first quality prices can be from 15 to 80 percent. Normally these savings are passed on to the consumer, thereby providing a merchant the chance to promote a product at a cut rate to the market.

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