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In the longish game I'm currently playing, I've set up portals directly in front of most merchants in the game precisely in order to clear out their inventory. One of my portals is across the counter from Antone just so that I can clear out everyone else's inventories and sell all the non-magical/low-grade arrowns/bullets/bolts to him.
Sure, you can reduce 4 inventory slots to 1 by buying 4 bunches of (25) arrows and selling them back as 100. But why not sell them to someone whose inventory screen will never be useful to you anyway? Once you've gotten the custom items from him, Antone never sells you anything particularly tempting (with the possible exception in the early game of Precision Arrows).
The reason I set up portals essentially at the feet of merchants is that even if you can't move when your party is carrying too much weight, you can still portal. So get everybody's encumbrance into the red and pop back to Antone's to unload.
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