The garment industry supply chain has two separate routes from manufacturer to end consumer. Large retailers purchase enough goods to buy direct from the manufacturer. Many design and contract directly with overseas suppliers. Smaller retailers do not purchase enough quantity at a single time, or do not have the resources to source overseas, and therefore go through a wholesaler. A wholesaler purchases from multiple direct (the manufacturer) or indirect (importer or other wholesaler) sources, and sells in smaller quantities to retailers. There is a cost, or markup associated with this service.

On the other side of the retail supply chain are wholesale liquidators. They purchase excess unsold inventory from manufacturers, wholesalers, and retailers. They consolidate the leftover inventory, usually by class of merchandise, and sell to small retailers, outlet and discount stores, and online retailers. They purchase the leftover goods at a steep discount from the original price, and thus offer an opportunity for small stores and online retailers to obtain branded goods at a discounted price, for retail in their markets.

Wholesale liquidators sell their products by the pallets case lot, or truckload. They use multiple methods for selling their products, from online auctions to fixed price lot sales. Quality and service varies greatly between liquidators.