The stock lot trade and stock lot goods: how the surplus stock market works

What is the stock lot trade?

The stock lot trade is the trade in complete lots of goods: surplus stock, excess stock and bankruptcy lots that are bought and sold on in one go. Stock lot traders buy from manufacturers and retailers and sell on to shops, market traders, online shops and exporters. Kooistra.com has been doing this since 1979 from a 15,000 m² warehouse in Leeuwarden.

The stock lot trade is the quiet engine behind many shops, market stalls and online shops: products that no longer fit at one company find a new seller through the stock lot trader, and in the end simply a customer. In this article we explain the terms, show how the chain works and where you can buy or sell stock lot goods yourself.

What are surplus stock and stock lot goods?

Definition and origin

Surplus stock is a quantity of goods left over at a manufacturer, wholesaler or retailer: after a season, a promotion, a collection change or the end of a product line. Stock lot goods is the broader trade term for goods traded by the complete lot rather than per item. That includes surplus stock, but also excess stock, B-grade, end-of-line items and bankruptcy lots. The goods themselves are usually new and undamaged; they have simply ended up in the wrong place or are left over at the wrong time.

Surplus stock arises for everyday reasons: a summer that ends too early, a promotion that sells less than planned, packaging that is redesigned so the old range "has to go", an online shop that bought more than demand, or a shop that closes. As long as stock is bought on expectation, lots will be left over, and the stock lot trade will continue to exist.

Surplus stock, stock lot goods and overstock: the difference

Overstock is too much stock of a current product; surplus stock is what is left at the end of a cycle; stock lot goods is the umbrella term for everything traded by the lot. In practice the terms are used interchangeably, and they all end up in the same place: with the stock lot trader. You can read the exact differences, and how to get rid of excess stock, in our article on overstock and excess stock.

How does the stock lot trade chain work?

The chain in brief:

1. A manufacturer, retailer or online shop is left with a lot;
2. A stock buyer buys the complete lot in one go and collects it;
3. The stock lot trader stores, sorts and sells on by the outer carton, pallet or lot;
4. Shops, market traders, online shops and exporters still bring the products to the consumer.

From manufacturer and retailer to stock buyer

The chain starts where stock is left over. Manufacturers with end-of-line ranges, retailers with disappointing promotions, online shops with a full warehouse and receivers with bankruptcy stock offer their lot to a stock buyer. The buyer assesses the lot on saleability, brand and quantities and makes one offer for the whole. At Kooistra.com that is within 24 hours, with our own transport and immediate payment. In a business closure or bankruptcy the same steps apply; see our article on bankruptcy stock and closing-down sales.

From stock buyer to retailer, market trader and export

Then the trade turns around: the stock lot trader sells the goods on. Small buyers, such as shops, market traders and online shops, buy by the outer carton or pallet; larger buyers and discount chains take whole lots. The margin lies in the difference between the purchase price of the lot and the resale price, and in the ability to find the right buyer for the right goods quickly. Volume, trade knowledge and a broad network are the stock lot trader’s capital.

Trust is at least as important. Suppliers don’t want their surplus visibly dumped in their own market, and brands want to keep control over where their products turn up. A good stock lot trader therefore works discreetly, respects brand restrictions and can agree where the goods may and may not be resold. That is exactly why well-known European retailers entrust their lots to Kooistra.com.

Export: from Leeuwarden to the Middle East and Africa

What may not or can no longer be sold in the Netherlands is often in demand elsewhere. Kooistra.com sells worldwide, including in Eastern Europe, the Middle East, Africa and Dubai. That is why brand restrictions are not a problem: a brand that wants to keep its goods outside its own European market finds a clean way out through export. For suppliers of branded lots, that is often the main reason to work with a stock lot trader that has an export network.

Where to buy and sell stock lot goods?

Buying: by the outer carton in the online shop

Business buyers, such as shops, market traders, online shops and wholesalers, find it easiest to buy stock lot goods through a specialist stock lot wholesaler. At Kooistra.com you order by the outer carton via the online shop (minimum order value €150 excluding VAT, free delivery in the Netherlands from €500), or you visit the warehouse in Leeuwarden by appointment. The range changes all the time, and new lots appear first under new arrivals. Want a whole lot of one item? Add the products to the quote list or contact the sales department. You can read how to buy and resell smartly in our guide buying surplus stock.

Selling: offer your lot

Do you have a lot left over yourself? Offer it via kooistra.com/partij-aanbieden, by email to inkoop@kooistra.com or via WhatsApp, with a description, quantities and photos. You usually receive a no-obligation offer for the complete lot within 24 hours; once agreed, we collect and pay immediately. The full process is described in selling surplus stock to a stock buyer.

The stock lot trade in practice: 45+ years of Kooistra

Kooistra.com has been trading in lots since 1979; the family has been in trade since 1935, when grandfather Kooistra started going door to door with a cargo bike. Today the business runs from a 15,000 m² warehouse on the Apolloweg in Leeuwarden, with suppliers such as Blokker, Wehkamp, vidaXL and Curver and sales far beyond Europe. What that looks like in practice has made the news more than once: when we bought 202 shipping containers full of Blokker items, RTL Z, De Telegraaf and Omrop Fryslân wrote about it. And whatever doesn’t find its way through wholesale, we sell through our own consumer channels: the Maxx shops in the north of the Netherlands, the Actieverkoop events and the Loodsverkoop warehouse sale in Dokkum. That way every lot ends up somewhere in the end. Want to know more about the company? See about us.

Frequently asked questions

What is the stock lot trade?

The stock lot trade is the trade in complete lots of goods, such as surplus stock, excess stock and bankruptcy lots, that are bought in one go from manufacturers and retailers and sold on to resellers.

What exactly are stock lot goods?

Stock lot goods are goods traded by the complete lot rather than per item: surplus stock, excess stock, end-of-line items, B-grade and bankruptcy lots. Usually new products that are left over somewhere.

What is the difference between selling by the lot and surplus stock?

Surplus stock is the quantity of goods that is left over; selling by the lot is the way of selling, everything in one go as a lot. Surplus stock is therefore traded by the lot, usually to a stock buyer or stock lot wholesaler.

How does a stock lot trader make money?

On the difference between the purchase price of the complete lot and the resale price per outer carton, pallet or lot. Speed, volume and a broad network of buyers, including export, determine the margin.

Can I take part in the stock lot trade as a small retailer?

Yes. At Kooistra.com, as a business customer you can buy by the outer carton from €150 excluding VAT. That lets you test an item on a small scale before buying more; private individuals cannot buy from the wholesale business.

Written by the Kooistra.com team, stock buyer and surplus stock wholesaler on the Apolloweg in Leeuwarden since 1979; the family has been in trade since 1935. More about us.