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Why Apparel Liquidation is Booming

Today, there is a global glut of clothing inventory, causing a boom time for the. Apparel retailers, investors, warehouse owners and other players in the apparel inventory market are seeking to capitalize on this phenomenon.

Today, there is a global glut of clothing inventory, causing a boom time for the apparel industry. Apparel retailers, investors, warehouse owners, and other players in the apparel inventory market are seeking to capitalize on this phenomenon. Experts use spreadsheets to track trends in clothing sales data, targeted estimates of supply and demand in the given market niche, figures on the sales performance of the items being considered for offloading, and other data to make calculated decisions on how to benefit from apparel liquidation.

At Michaels Global Trading (MGT), we can guide you through the process of liquidating excess stock. The apparel industry is a very competitive climate today, with ongoing pressure to offer trendy new products to maintain customer interest. Consumers are increasingly unattached to brands and are instead simply looking for clothing that meets their needs in terms of quality, functionality, and style. As new inventory continuously arrives, older inventory taking up valuable space needs to be offloaded.

As a clothing retailer, whether online or bricks-and-mortar, excess inventory is always an issue, especially toward the end of each season. Even during a well-performing quarter, some items will have insufficient sales due to issues such as unflattering draping, unpleasant texture, a displeasing color scheme, faulty zippers or buttons, and poorly chosen pricing. Rather than giving up all of your investment in the merchandise by donating it or keeping it in storage, consider selling excess clothing inventory to recover some of the expense.

Prior to Liquidation

Perhaps the most effective way to reduce the quantity of excess inventory is using inventory management software to calculate how much to purchase at the outset and how much to restock. Be sure to fill in all of the fields used in the calculation information gathering because inaccurate or incomplete forecasting of customer demand can cause excess stock to be ordered. Often, inventory software and accounting software are sold and used together so that the overall management process is refined.

Once the inventory has been available for sale for a lengthy period and won’t seem to move, you still have options. Don’t underestimate the efficacy of the clearance rack, virtual or in-store. It’s a great way to sell off smaller amounts of apparel at discounted prices. Philosophies differ as to where to locate the discount rack—toward the front of the store or at the back. This is affected by many factors, such as where the changing rooms are located, the lighting, the flow of the space, and where the new and featured items are located. Similarly, for online retailers, the choice is whether to promote discount items by using pop-ups or advertising copy at the top, bottom, or side of the main page, or on a separate tab.

To sell off greater volumes of merchandise, consider a “buy one, get one half price” sale. This type of sale can include all items, not just the excess inventory, as long as it is made clear that the discount is applied to the item of lesser value. Consider a quantity discount promotion to move more inventory. To make a big splash, run a heavily promoted weekend-long sale with deep discounts of at least 60 percent off. If your apparel business is online rather than a physical store, tailor your promotion marketing accordingly by using social media and search engine optimization techniques.

Itemization and Preparation

It is important to prepare an itemized list of all the overstock apparel in preparation for sale to a liquidation specialist such as MGT. Always include verification of the condition of your apparel inventory. Note whether the apparel is overstock or discontinued items. Keep only items that are in good condition, and donate or recycle any damaged goods. This itemized list will be useful not only during the transaction process but afterward for tax and other record-keeping purposes.

Preparing a mixed lot of assorted items is common practice for MGT clientele, and we’re happy to help. Please be prepared to provide details on the category of product. We will use these details to list the groups of items for sale and in marketing descriptions. The more information you provide, such as what the clothing is made of, the size range, the type of clothing and so on, the better. An exact manifest is preferred but not required, as a general list of items by quantity can be sufficient. Ideally, it is very helpful to provide the UPC or ASIN codes of the apparel items, or at least the brand names.

Dimensions and Packaging

In order to arrange for shipping of the apparel from your business or warehouse to one of our locations, it is important that you provide information on how the lot is packaged and the type of facility it is housed in. Is the apparel kept in loose boxes or on pallets? What is the weight of the lot? Is the pickup location a residence, commercial warehouse, storage facility with a loading dock, or another type of location? This information is necessary for MGT to facilitate the transportation and sale of your products to our contacts.

Photography and Samples

Your MGT specialist will need images and samples of the apparel to design marketing materials. Depending on your unique needs, we will help arrange photography, or you may prefer to handle it in-house. Providing samples gives us an idea of how to market the items and what pricing will be appropriate. This is especially helpful if the apparel is a new niche or is aimed to attract a limited range of buyers.


If your company is liquidating products for which you have existing marketing materials such as email blasts, brochures, high-quality images, specification sheets, or any other materials used in the original marketing campaign, provide these to us and we’ll help capitalize on it. Collect the materials, preferably in the form of high-resolution PDFs or other digital formats, and send them to us so we can create a promotional plan for your load. A great marketing plan helps attract potential buyers.

For more information, please call Michaels Global Trading Ltd. at 1-888-902-7531 or contact us here.

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