How to Buy Overstock From Department Stores

Although many websites offer department store overstocks, the best way to obtain this type of discounted product is to purchase the items directly from the department store. Most large department stores require potential buyers to submit a bid for overstock inventory, and the store then chooses buyers based on the bid information.

1. Create a business. Department stores will usually not consider bids by individuals on overstock inventory. Obtain a Create a business. Department stores will usually not consider bids by individuals on overstock inventory. Obtain a tax identification number from your local Internal Revenue Service's office. Have a plan in place for reselling the overstock items.


2. Select the type of items you are interested in purchasing. Similar products are generally grouped together and may be sold in lots consisting of apparel, shoes, household items or cosmetics. Realize that you will have to buy in bulk.


3. Find department stores. Selecting stores with a headquarters in or near your community is ideal because you are able to easily meet with the retailer's upper management.


4. Contact the administrative offices of the department stores. Ask to speak with someone in charge of overstock bids. In some cases, the purchasing department is also involved with overstock inventory. Find out what the store's procedures are for submitting a bid.


5. Expect to sign a contract with the department store. Since items are sold "as is," many of the products could be stained, torn or blemished. Most contracts include a no return clause that prevents the company purchasing the overstock from trying to return items.


6. Realize that competition for department store overstock is fierce. A number of large businesses with well-recognized retail establishments compete for department store overstocks. Thus, ensure the bid you submit is low, yet high enough for you to make a profit on the overstock.