What does foreign trade inventory tail goods mean? How to determine?

When we buy things online, we will see that some merchants specialize in foreign trade inventory. Some refer to the original brand inventory. So, what does foreign trade inventory mean?

1. What does foreign trade inventory tail goods mean?

1. Tail goods mean: the remaining products after factory returns or orders, or samples, and inventory backlogs.

2. Tail goods are the excess products left after the production is completed and the products are delivered. Some of these products belong to reasonable production losses. As a highly profitable industry, the threshold for clothing is very low, and it has developed too fast in recent years. As a result, supply exceeds demand, and a large number of clothes cannot be sold. Therefore, a large amount of inventory in the warehouses of manufacturers and brand owners has become tail goods, which is the largest source of tail goods. For example: the total production volume of domestic processing enterprises is equal to the subject volume of the contract order plus the reasonable loss agreed by both parties. After delivering the goods according to the contract order volume, the remaining products are called foreign trade tail goods. Generally, they can be handled by domestic production enterprises.

3. Since these are leftover products, domestic processing companies have already earned the profits they deserve by completing orders. In order to reduce inventory backlogs, they often sell them at prices below cost.

2. How to determine the tail goods of foreign trade inventory?

1. Price comparison

Foreign trade tail goods usually come from manufacturers. Their business is mainly to produce products for brand owners, not to sell them. Therefore, the price of excess foreign trade tail goods is not high.

2. Quality comparison

Foreign trade tail goods are genuine products. Whether in terms of materials or craftsmanship, they are no different from genuine products. The only difference may be a small inconspicuous flaw on a certain product. Most foreign trade tail goods are intact genuine products. However, nowadays, some manufacturers who are good at imitation can produce fakes that are almost indistinguishable from the real thing. When purchasing goods, the store must understand every detail of the genuine product, or compare it with the genuine product.

3. Trademark comparison

The biggest difference between leftover foreign trade goods and genuine goods is the label. Some leftover foreign trade goods are labeled at the end, while some leftover foreign trade goods of big brands are not labeled at all. This does not mean that the quality of the goods is bad or they are fake, but it is to protect the genuine goods on the market. Big brands have very strict protection measures for their products. Not only will leftover foreign trade goods not be labeled, but even the brand packaging bags cannot be used.

To sum up, foreign trade inventory tailings refer to the products or samples that remain after the factory orders are completed, or the defective products that are returned due to unqualified quality.