Dollar stores get their merchandise from foreign countries, other stores’ liquidation sales and through direct dealings with manufacturers. These unconventional inventory acquisition methods allow dollar stores to sell items at greatly reduced prices.
A large portion of dollar store merchandise comes from foreign countries, where it is manufactured using cheaper ingredients. These items are rarely name brand, allowing dollars stores to purchase them at much lower prices.
Dollar stores may acquire some name brand merchandise from liquidation sales held by other stores. Failing stores often attempt to get rid of their inventory by selling it cheaply, allowing dollar stores to acquire name brand items.
Dollar stores also make deals directly with manufactures to buy items in bulk, which greatly reduces the cost per item. Dollar stores may also agree to pay for shipping costs to get better prices on merchandise.