Buying Closeouts and Wholesale Apparel

The first step in buying closeout apparel is to educate yourself. Closeout apparel can be overstock, salvage, surplus, inventory clearance, store returns, shelf pulls or factory rejects.

Closeouts are offered at drastically reduced prices for a reason so it is important to learn the in’s and out’s of the wholesale closeout business before diving in headfirst. Successful closeout distributors first learn the price points.

Regular wholesale prices are typically set at one half of regular retail prices but closeouts might be offered at one half of the regular wholesale price (or less). There are unlimited reasons why closeouts are offered including irregular quality, limitations on colors or sizes or discontinued styles.

Because of the deep discounted prices and sometimes inferior quality, one might presume that closeout merchandise is fake but the truth is that authenticity has nothing to do with the quality or price. Authentic brand name clothing comes in all shapes, sizes and conditions.

Janesdeals visited the retail factory outlet stores in the US. The information collected might be helpful in seeing what authentic closeout apparel looks like.


If it comes from China it is fake.


Made in China does not mean the goods are fake. Authentic apparel is being manufactured in China, Sri Lanka, Bolivia, Taiwan, Indonesia, India, Hungary, Indonesia, Israel, Tunisia, Morocco, Turkey, Peru, El Salvador, Mexico, Hong Kong and many more countries.


If the clothing is poor quality with loose threads it is fake.


Authentic apparel is not always perfect. Authentic irregulars, shelf pulls and store returns are being sold at the discount factory outlets each day. In addition, factory made garments of a lower thread count is being mass produced in unlimited supplies for the outlet stores.


If the price is too low it is fake.


Low pricing does not mean the apparel is fake. Factory stores will discount apparel that is being closed out from last season or if there is overstock of the current goods. Sometimes the merchandise is discounted if a style is being discontinued. When merchandise has not sold at the end of the season, it is pulled off the shelf and liquidated. The factory retail stores discount the prices on authentic branded apparel between 50% – 75% off the retail price.


If large ongoing supplies are available, the goods are fake.


Factory stores produce ongoing supplies for the factory outlet stores so large volumes of closeouts can be purchased in large volumes. The RL and the Brooks Brothers stores are two examples of outlet stores selling unlimited supplies of polos in all sizes and colors.

The Lacoste Factory Outlet store in Orlando, sells Lacoste shirts Made in Hungary, Indonesia, Morocco and Tunisia. The Armani Store sells Armani shirts made in Turkey, Nike sells shirts made in Israel and Miss Sixty sells denim jeans made in China.

Here are some pictures of authentic closeout apparel being sold at the factory outlet stores:

Authentic Brand Name Factory Apparel

In summary, most of the factory outlet stores are selling brands made in China and other parts of the world. The apparel is priced way below wholesale and discounted for a variety of reasons. The clothing can be a combination of overstock, factory seconds, shelf pulls and store returns. The quality of the apparel ranges from first quality to irregular and defected and some authorized retailers sell new factory produced goods in addition to closeouts and overstock. All of the apparel being sold at the factory outlet stores is authentic.

Factory Outlets in USA – More Info []

Post time: 10-05-2017