Sep 21, 2026 · 45 min · 14 segments
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Jacques StambouliGuestShannon JeanHost
So, so, so let's, let's get our definitions, right? So first of all, you know, a closeout is, um, one item, an individual SKU, uh, that, uh, a company has large quantities of that it needs to get rid of, right?

So it tends to be, you know, brand new, uh, it tends to be an old product, but in brand new condition.

... a return, a customer return from a store is an item that, you know, a store has sold to somebody.

Maybe it wasn't the right color, didn't fit in the shelf, uh, decided they didn't need it after all, whatever, and they brought it back to the store.

I mean, who knows what happened to it, but it is no longer in the same condition as the closeout.

However, and this especially works well, say with apparel as well as, as with everything else, it is an item that typically is wanted, that is relatively recent, and that has actually been sold.

Now compare that with, for example, something that is not sold at all, right? So let's say it's been in the store and, um, started at 100 bucks, got marked down to $80, got marked down to 70, got marked down to 60, marked down to $50.

You know, all the stuff that's been waiting in the back, you know, the excess that you're supposed to refill once you sell it, never even sees the s- shop floor because that item just has not moved off the shelf.

So, so, so let's, let's get our definitions, right? So first of all, you know, a closeout is, um, one item, an individual SKU, uh, that, uh, a company has large quantities of that it needs to get rid of, right?

So it tends to be, you know, brand new, uh, it tends to be an old product, but in brand new condition.

... a return, a customer return from a store is an item that, you know, a store has sold to somebody.

Maybe it wasn't the right color, didn't fit in the shelf, uh, decided they didn't need it after all, whatever, and they brought it back to the store.

I mean, who knows what happened to it, but it is no longer in the same condition as the closeout.

However, and this especially works well, say with apparel as well as, as with everything else, it is an item that typically is wanted, that is relatively recent, and that has actually been sold.

Now compare that with, for example, something that is not sold at all, right? So let's say it's been in the store and, um, started at 100 bucks, got marked down to $80, got marked down to 70, got marked down to 60, marked down to $50.

You know, all the stuff that's been waiting in the back, you know, the excess that you're supposed to refill once you sell it, never even sees the s- shop floor because that item just has not moved off the shelf.
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