Tools commonly used in the Job Lot Merchandise (Wholesale) industry for day-to-day tasks and operations.

• Pallet jacks
• Forklifts
• Hand trucks
• Conveyor belts
• Shrink wrap machines
• Box cutters
• Tape dispensers
• Label makers
• Barcode scanners
• Inventory management software

Common products and services typical of NAICS Code 423990-22, illustrating the main business activities and contributions to the market.

• Discount stores
• Online marketplaces
• Flea markets
• Retailers
• Liquidation stores
• Auction houses
• Surplus stores
• Dollar stores
• Thrift stores
• Warehouse clubs

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

• Hazardous Materials Endorsement (HME): A certification required by the Transportation Security Administration (TSA) for drivers who transport hazardous materials. The certification ensures that drivers are aware of the risks associated with transporting hazardous materials and are trained to handle them safely.
• OSHA 10-Hour General Industry Certification: A certification provided by the Occupational Safety and Health Administration (OSHA) that provides workers with a basic understanding of workplace safety and health hazards. The certification covers topics such as hazard identification, avoidance, control, and prevention.
• DOT Commercial Driver's License (CDL): A certification required by the Department of Transportation (DOT) for drivers who operate commercial motor vehicles (CMVs). The certification ensures that drivers are trained and qualified to operate CMVs safely.
• National Association Of Wholesaler-Distributors (NAW) Certification: A certification provided by the National Association of Wholesaler-Distributors (NAW) that recognizes individuals who have demonstrated a high level of knowledge and expertise in the wholesale distribution industry. The certification covers topics such as sales, marketing, operations, and management.
• Certified Professional Sales Person (CPSP) Certification: A certification provided by the Manufacturers' Representatives Educational Research Foundation (MRERF) that recognizes individuals who have demonstrated a high level of knowledge and expertise in the sales profession. The certification covers topics such as sales techniques, customer service, and product knowledge.

A concise historical narrative of NAICS Code 423990-22 covering global milestones and recent developments within the United States.

• The Job Lot Merchandise (Wholesale) industry has a long history dating back to the early 20th century. The industry started as a way for manufacturers to sell off excess inventory and discontinued products to wholesalers who would then sell them to retailers. The industry grew rapidly during the post-World War II era as consumer demand for affordable goods increased. In the United States, the industry saw significant growth in the 1980s and 1990s as discount retailers like Walmart and Target became more popular. These retailers relied heavily on job lot merchandise to offer low prices to consumers. In recent years, the industry has faced challenges due to the rise of e-commerce and changing consumer preferences. However, job lot merchandise remains an important part of the wholesale industry, offering consumers access to affordable goods and providing retailers with a way to manage inventory and increase profits.

The anticipated future trajectory of the NAICS 423990-22 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

• Growth Prediction: Stable

  The future outlook for the Job Lot Merchandise (Wholesale) industry in the USA is positive. The industry is expected to grow in the coming years due to the increasing demand for low-priced goods. The rise of e-commerce has also contributed to the growth of the industry as more retailers are looking for affordable products to sell online. Additionally, the industry is expected to benefit from the increasing number of discount stores and dollar stores in the country. However, the industry may face challenges due to the ongoing COVID-19 pandemic and the resulting economic uncertainty.

Recent groundbreaking advancements and milestones in the Job Lot Merchandise (Wholesale) industry, reflecting notable innovations that have reshaped its landscape.

• Expansion Of Online Sales Channels: Many companies in the Job Lot Merchandise (Wholesale) industry have expanded their online sales channels to reach a wider customer base.
• Introduction Of New Product Lines: Some companies have introduced new product lines to diversify their offerings and attract new customers.
• Increased Focus on Sustainability: Some companies have started to focus on sustainability by offering eco-friendly products and reducing their carbon footprint.
• Adoption Of New Technologies: Some companies have adopted new technologies such as automation and artificial intelligence to improve their operations and increase efficiency.
• Expansion Into New Markets: Some companies have expanded into new markets to increase their customer base and revenue streams.

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Job Lot Merchandise (Wholesale) industry. It highlights the primary inputs that Job Lot Merchandise (Wholesale) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Bulk Packaging Supplies: Materials such as boxes and pallets that are necessary for the efficient storage and transportation of large quantities of merchandise.

Discontinued Products: Items that are no longer being manufactured, which can be sourced at lower prices and sold to retailers looking for unique inventory.

Display Fixtures: Equipment such as shelves and racks that are used to showcase products effectively in retail environments, enhancing visibility and sales potential.

Liquidation Stock: Inventory from businesses that are closing or liquidating, allowing wholesalers to acquire goods at significantly reduced prices for resale.

Overstock Merchandise: Products that retailers have excess inventory of, allowing wholesalers to purchase them at discounted rates for resale to other businesses.

Packaging Materials: Supplies such as bubble wrap and packing tape that are necessary for safely packaging products for shipment to retailers.

Promotional Materials: Items such as flyers and banners that wholesalers can use to market their products to potential buyers, increasing visibility and sales.

Returned Merchandise: Products that have been returned by consumers but are still in sellable condition, which wholesalers can acquire at a discount.

Seasonal Merchandise: Items that are produced for specific seasons, which can be purchased in bulk at reduced prices and sold to retailers ahead of peak shopping times.

Slightly Imperfect Goods: Products that may have minor defects but are still functional, providing an opportunity for wholesalers to offer discounted prices to retailers.

Surplus Inventory: Excess stock from manufacturers or retailers that can be bought in bulk, providing wholesalers with a diverse range of products to offer their clients.

Service

Inventory Management Software: A digital solution that helps wholesalers track stock levels, manage orders, and optimize inventory turnover to enhance operational efficiency.

Logistics and Shipping Services: Essential services that facilitate the transportation of goods from suppliers to wholesalers and from wholesalers to retailers, ensuring timely delivery.

Market Research Services: Services that provide insights into market trends and consumer preferences, helping wholesalers make informed purchasing decisions.

Quality Control Services: Services that ensure the products being sold meet certain standards, which is crucial for maintaining customer satisfaction and trust.

Explore a detailed compilation of the unique products and services offered by the Job Lot Merchandise (Wholesale) industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the Job Lot Merchandise (Wholesale) to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Job Lot Merchandise (Wholesale) industry. It highlights the primary inputs that Job Lot Merchandise (Wholesale) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Bedding and Linens: Various types of bedding products that may be overstocked or slightly imperfect, allowing retailers to offer consumers affordable options for home decor and comfort.

Bulk Office Supplies: Items such as paper, pens, and organizational tools that are sold in large quantities. Businesses purchase these supplies to maintain operations while benefiting from lower per-unit costs.

Craft Supplies: A variety of materials for arts and crafts that are sold in bulk, including fabrics, paints, and tools. Retailers can offer these items to hobbyists seeking affordable crafting options.

Discontinued Apparel: This category includes clothing items that are no longer in production, allowing retailers to stock unique styles at lower prices. Retailers benefit by attracting bargain hunters looking for trendy yet affordable fashion.

Discounted Toys and Games: This includes toys that may be overstocked or from previous seasons, allowing retailers to provide families with affordable entertainment options. Retailers can attract customers looking for budget-friendly gifts.

Gardening Tools and Supplies: This includes various tools and supplies for gardening that may be overstocked or slightly imperfect. Retailers can provide these items to gardening enthusiasts looking for affordable options.

Health and Beauty Products: This includes overstocked or discontinued items such as skincare and cosmetics. Retailers can provide these products to consumers looking for quality beauty items at lower prices.

Kitchen Appliances: Small kitchen appliances that are overstocked or discontinued, allowing retailers to provide customers with essential cooking tools at discounted rates.

Miscellaneous Home Goods: A variety of household items such as kitchenware, bedding, and small appliances that are sold in bulk. Retailers utilize these products to enhance their inventory with diverse offerings at competitive prices.

Overstocked Electronics: These are surplus electronic items that are sold at discounted prices, often including televisions, computers, and accessories. Retailers purchase these products to offer customers significant savings on popular tech items.

Pet Supplies: This includes a range of pet products such as toys, food, and accessories that may be overstocked. Retailers can cater to pet owners looking for quality products at reduced prices.

Promotional Merchandise: Products that are overproduced for marketing campaigns, such as branded mugs or t-shirts. Retailers can offer these items at a discount, appealing to customers interested in unique promotional items.

Seasonal Decorations: These include holiday-themed items such as decorations for Christmas, Halloween, and other celebrations. Retailers can purchase these in bulk to meet seasonal demand and provide customers with festive options at lower costs.

Slightly Imperfect Furniture: Furniture that may have minor cosmetic flaws but is still functional is sold at reduced prices. Retailers can offer these items to budget-conscious consumers seeking quality furniture without the premium price tag.

Sporting Goods Surplus: Items such as exercise equipment and outdoor gear that are sold at discounted prices due to overproduction or seasonal changes. Retailers can attract fitness enthusiasts with budget-friendly options.

A thorough examination of the Job Lot Merchandise (Wholesale) industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

Economic Factors

Social Factors

Technological Factors

Legal Factors

Economical Factors

An in-depth look at the Job Lot Merchandise (Wholesale) industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.

Value Chain Position

Category: Distributor
Value Stage: Intermediate
Description: This industry operates as a distributor in the wholesale sector, focusing on the procurement and resale of overstocked, discontinued, or slightly imperfect products. Companies engage in bulk purchasing from various sources and sell these goods to retailers and other businesses at discounted prices.

Upstream Industries

Downstream Industries

Primary Activities

Inbound Logistics: Inbound logistics involve the careful selection and procurement of overstock and discontinued items from various suppliers. Efficient storage practices are essential for managing inventory levels, while quality control measures ensure that only functional products are accepted. Challenges include managing excess inventory and ensuring timely deliveries from suppliers, often addressed through robust inventory management systems.

Operations: Core operations include sorting, categorizing, and pricing job lot merchandise for resale. Quality management practices involve inspecting goods upon receipt to ensure they meet acceptable standards. Industry-standard procedures often include the use of inventory management software to track stock levels and sales trends, enabling informed purchasing decisions.

Outbound Logistics: Outbound logistics encompass the distribution of merchandise to retailers and other customers. Common practices include using efficient shipping methods to ensure timely delivery while maintaining product quality. Packaging and labeling are crucial for facilitating easy identification and handling during transport.

Marketing & Sales: Marketing strategies often involve direct outreach to potential retail customers, participation in trade shows, and online marketing efforts to showcase available merchandise. Building strong customer relationships is vital, with practices focusing on personalized service and understanding customer needs. Sales processes typically include negotiating bulk pricing and terms to encourage repeat business.

Support Activities

Infrastructure: Management systems in this industry often include inventory management software that tracks stock levels and sales data. Organizational structures typically consist of a small team focused on procurement, sales, and logistics, allowing for agile decision-making. Planning systems are essential for forecasting demand and managing inventory turnover effectively.

Human Resource Management: Workforce requirements include skilled personnel for procurement, sales, and logistics management. Training programs focus on product knowledge and customer service skills to enhance employee effectiveness. Industry-specific knowledge is crucial for understanding market trends and customer preferences, ensuring that staff can provide valuable insights to clients.

Technology Development: Key technologies include inventory management systems and e-commerce platforms that facilitate online sales. Innovation practices often involve adopting new software solutions to streamline operations and enhance customer engagement. Industry-standard systems may also include data analytics tools for tracking sales performance and identifying market opportunities.

Procurement: Sourcing strategies involve establishing strong relationships with suppliers to ensure a steady flow of diverse merchandise. Supplier relationship management is critical for negotiating favorable terms and maintaining quality standards. Purchasing practices often emphasize flexibility to adapt to changing market conditions and customer demands.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through inventory turnover rates and sales per square foot. Common efficiency measures include tracking order fulfillment times and minimizing excess inventory. Industry benchmarks are established based on average sales volumes and operational costs, guiding performance improvement efforts.

Integration Efficiency: Coordination methods involve regular communication between procurement, sales, and logistics teams to ensure alignment on inventory levels and customer needs. Communication systems often include collaborative software tools that facilitate real-time updates and information sharing across departments.

Resource Utilization: Resource management practices focus on optimizing storage space and minimizing waste during the sorting and categorization of merchandise. Optimization approaches may involve implementing just-in-time inventory systems to reduce holding costs and improve cash flow, adhering to industry standards for efficient operations.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include the ability to procure unique and discounted merchandise, effective inventory management, and strong relationships with retail customers. Critical success factors involve understanding market trends and customer preferences to offer desirable products at competitive prices.

Competitive Position: Sources of competitive advantage include the ability to quickly adapt to changing market demands and offer a diverse range of products. Industry positioning is influenced by the ability to source high-quality merchandise at low prices, impacting overall market dynamics and customer loyalty.

Challenges & Opportunities: Current industry challenges include fluctuating demand for discounted goods and competition from online retailers. Future trends may involve increased demand for sustainable and ethically sourced products, presenting opportunities for wholesalers to diversify their offerings and enhance their market presence.

A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the Job Lot Merchandise (Wholesale) industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.

Strengths

Industry Infrastructure and Resources: The industry benefits from a well-established infrastructure that includes warehouses, distribution centers, and logistics networks. This strong infrastructure supports efficient operations, enabling companies to manage large inventories and respond quickly to market demands, which is crucial for maintaining competitive advantage.

Technological Capabilities: Technological advancements in inventory management systems and e-commerce platforms provide significant advantages. The industry is characterized by a moderate level of innovation, with many companies adopting software solutions that enhance operational efficiency and customer engagement, ensuring competitiveness in a rapidly evolving market.

Market Position: The industry holds a strong position within the wholesale sector, characterized by a diverse range of products and a broad customer base. Companies often benefit from brand recognition and established relationships with retailers, which contribute to their competitive strength, although they face pressure from specialized wholesalers.

Financial Health: Financial performance across the industry is generally strong, with many companies reporting stable revenue growth and healthy profit margins. The financial health is supported by consistent demand for discounted merchandise, although fluctuations in inventory costs can impact profitability.

Supply Chain Advantages: The industry enjoys robust supply chain networks that facilitate efficient procurement of overstocked and discontinued goods. Strong relationships with manufacturers and retailers enhance operational efficiency, allowing for timely delivery of products to market and reducing costs associated with excess inventory.

Workforce Expertise: The labor force in this industry is skilled and knowledgeable, with many workers having experience in wholesale operations and inventory management. This expertise contributes to high operational standards and efficiency, although there is a continuous need for training to keep pace with technological advancements.

Weaknesses

Structural Inefficiencies: Some companies face structural inefficiencies due to outdated inventory management practices or inadequate facility layouts, leading to increased operational costs. These inefficiencies can hinder competitiveness, particularly when compared to more streamlined operations.

Cost Structures: The industry grapples with rising costs associated with warehousing, transportation, and compliance with regulatory standards. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies.

Technology Gaps: While some companies are technologically advanced, others lag in adopting new inventory and sales technologies. This gap can result in lower productivity and higher operational costs, impacting overall competitiveness in the market.

Resource Limitations: The industry is vulnerable to fluctuations in the availability of goods, particularly due to supply chain disruptions. These resource limitations can disrupt inventory levels and impact the ability to meet customer demands.

Regulatory Compliance Issues: Navigating the complex landscape of trade regulations and safety standards poses challenges for many companies. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage.

Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Companies may face difficulties in gaining distribution agreements or meeting local regulatory requirements, limiting growth opportunities.

Opportunities

Market Growth Potential: There is significant potential for market growth driven by increasing demand for discounted and bulk merchandise. The trend towards value shopping presents opportunities for companies to expand their offerings and capture new market segments, particularly in online sales.

Emerging Technologies: Advancements in e-commerce technologies and data analytics offer opportunities for enhancing customer engagement and operational efficiency. These technologies can lead to increased sales and improved inventory management, positioning companies favorably in the market.

Economic Trends: Favorable economic conditions, including rising disposable incomes and consumer interest in value-oriented shopping, support growth in the wholesale sector. As consumers prioritize cost savings, demand for job lot merchandise is expected to rise.

Regulatory Changes: Potential regulatory changes aimed at promoting fair trade practices could benefit the industry. Companies that adapt to these changes by ensuring compliance may gain a competitive edge and enhance their market reputation.

Consumer Behavior Shifts: Shifts in consumer preferences towards budget-friendly and sustainable products create opportunities for growth. Companies that align their product offerings with these trends can attract a broader customer base and enhance brand loyalty.

Threats

Competitive Pressures: Intense competition from both domestic and international wholesalers poses a significant threat to market share. Companies must continuously innovate and differentiate their product offerings to maintain a competitive edge in a crowded marketplace.

Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for job lot merchandise. Companies must remain agile to adapt to these uncertainties and mitigate potential impacts on sales.

Regulatory Challenges: The potential for stricter regulations regarding product safety and labeling can pose challenges for the industry. Companies must invest in compliance measures to avoid penalties and ensure product safety.

Technological Disruption: Emerging technologies in alternative retail channels could disrupt the market for traditional wholesale operations. Companies need to monitor these trends closely and innovate to stay relevant.

Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Companies must adopt sustainable practices to meet consumer expectations and regulatory requirements.

SWOT Summary

Strategic Position: The industry currently enjoys a strong market position, bolstered by robust consumer demand for discounted merchandise. However, challenges such as rising costs and competitive pressures necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and product lines, provided that companies can navigate the complexities of regulatory compliance and supply chain management.

Key Interactions

Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for discounted and bulk merchandise. Key growth drivers include the rising popularity of online shopping, advancements in inventory management technologies, and favorable economic conditions. Market expansion opportunities exist in both domestic and international markets, particularly as consumers seek out value-oriented products. However, challenges such as resource limitations and regulatory compliance must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.

Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and supply chain vulnerabilities. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and regulatory landscapes. Effective risk management strategies, including diversification of suppliers and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.

Strategic Recommendations

An exploration of how geographic and site-specific factors impact the operations of the Job Lot Merchandise (Wholesale) industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.

Location: Operations thrive in regions with high retail density, such as urban centers and suburban areas, where access to a large customer base is essential. Proximity to major highways and transportation hubs facilitates efficient distribution to retailers and discount stores. Regions with a mix of retail environments, including flea markets and online marketplaces, provide diverse selling opportunities, enhancing operational success.

Topography: Flat and accessible terrain is crucial for warehouse and distribution center operations, allowing for easy loading and unloading of goods. Areas with minimal elevation changes support efficient transportation logistics, while regions with significant topographical challenges may require additional investment in infrastructure to ensure smooth operations. Accessibility to major roadways is vital for timely deliveries and inventory management.

Climate: A temperate climate is beneficial for maintaining product quality during storage and distribution. Regions with extreme weather conditions may require additional climate control measures in warehouses to protect merchandise from damage. Seasonal fluctuations can affect inventory turnover rates, necessitating strategic planning to manage stock levels effectively throughout the year. Adaptation to local climate conditions is essential for operational efficiency.

Vegetation: Vegetation management is important for maintaining clear access routes and ensuring compliance with local environmental regulations. Facilities must consider landscaping that minimizes pest attraction while providing necessary buffers for operational areas. Local ecosystems can influence site selection, as areas with dense vegetation may require clearing for warehouse construction, impacting operational timelines and costs.

Zoning and Land Use: Zoning regulations typically require commercial or industrial designations that allow for wholesale operations, including storage and distribution activities. Specific permits may be needed for handling certain types of merchandise, particularly if hazardous materials are involved. Local land use regulations can vary significantly, impacting site selection and operational flexibility, especially in urban areas where space is limited.

Infrastructure: Robust transportation infrastructure is critical, including access to major highways and rail systems for efficient logistics. Facilities require reliable utilities, including electricity and water, to support operations. Communication infrastructure must also be in place to manage inventory systems and coordinate with retailers effectively. Adequate loading docks and storage facilities are essential for handling large volumes of merchandise efficiently.

Cultural and Historical: Community acceptance of wholesale operations can vary, influenced by local economic conditions and historical presence in the area. Regions with a strong retail culture may be more supportive of job lot merchandise operations, recognizing their role in providing affordable goods. Social considerations, such as community outreach and engagement, are important for fostering positive relationships and addressing any concerns related to operations.

A detailed overview of the Job Lot Merchandise (Wholesale) industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Medium

Description: This industry specializes in the wholesale distribution of job lot merchandise, which includes overstocked, discontinued, or slightly imperfect durable goods sold in bulk to retailers and other businesses. Operations focus on sourcing these goods from various suppliers and efficiently distributing them at discounted prices.

Market Stage: Growth. The industry is experiencing growth as retailers seek cost-effective purchasing options, particularly in a fluctuating economy where discount merchandise becomes increasingly appealing to consumers.

Geographic Distribution: National. Job lot merchandise wholesalers are distributed across the United States, with significant concentrations in urban areas where retail demand is high, allowing for efficient logistics and distribution.

Characteristics

Market Structure

Market Concentration: Fragmented. The market is characterized by a fragmented structure with numerous small to medium-sized wholesalers, each specializing in different types of job lot merchandise, leading to a competitive landscape.

Segments

Distribution Channels

Success Factors

Demand Analysis

Demand Drivers

Competitive Landscape

Entry Barriers

Business Models

Operating Environment