Factory outlet stores in Nappanee are the building-based or online stores where customers can buy branded products directly from the manufacturers. Traditionally, such stores were located adjacent to the factory or production unit to allow customers to watch the manufacturing process. While, the modern factory outlets in Nappanee are typically stores that are branded by manufacturers and provide a significant amount of discount to its customers. Such stores in Nappanee often deal in that firm's closeouts, discontinued merchandise, irregulars, canceled orders, and sometimes, in-season, first-quality merchandise.