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Wholesale Closeout Merchandise
First, let's look at the three words that
make up this exciting world of buying and selling. When someone
buys wholesale, they get larger amounts of products at a
reduced price, as compared to buying retail (one item at
a higher price because the retail shop has more cost involved).
This is, of course, a simplified definition of a huge industry,
but it gives a good idea of what wholesale is. Closeouts
are simply the final sale of items, usually with the idea
of emptying the inventory. There are various reasons for
closeouts, including that the item is not very popular to
the retail buying public.
The most exciting part of wholesale closeouts merchandise
may be the merchandise itself. In the world of wholesale
closeouts merchandise, the different types of products you
can buy and resell literally extends from apples to zithers
(maybe not zithers).
Who are the customers for suppliers of wholesale
closeouts merchandise? Well, the list might include flea market vendors,
outlet stores, distributors to a select set of retail stores,
exporters, even brokers (more about them later). These customers
of wholesale closeouts merchandise suppliers generally resell
merchandise that first appeared in department stores and
chain stores but for some reason did not sell as well as
expected. These items may also be excess inventory. Though
the merchandise sold well, the designer or manufacturer thought
there would be even more buyers.
For true wholesale closeouts merchandise,
the product is usually available in large lots, on pallets
or even truck or train container loads. Within the world
of closeouts many companies focus strictly on one, maybe
two, types of merchandise. But there are plenty of suppliers
of wholesale closeouts merchandise who have contacts with
dozens of manufacturers and major stores. These suppliers
can usually find the item a reseller needs, help with warehousing
issues and even work to make the "deal" fit a
particular budget. If a retail/resell merchant has problems
getting the large lot transported, many of the wholesale
closeouts merchandise companies will arrange shipping too.
What kind of savings are possible with
wholesale closeout merchandise? For the patient and selective
reseller, most products can be purchased for pennies on
the dollar, then resold at prices that make them a bargain
for the end user and profitable for the retail site. Example:
Name brand men's clothing – retail price $25 to $400 for $7 piece in
lots of 500. A partial list of wholesale closeout merchandise
includes items that are bought, shipped and resold every
day, somewhere around the world: toys, lingerie, sporting
goods, children's clothing, shoes, hardware….the list
goes on and on and on.
As mentioned early, true wholesale
closeouts merchandise companies are not brokers. These individuals usually do not
own the merchandise or even warehouse it in their facilities.
Brokers, in fact, will usually buy from the larger merchandise
dealers, acting as an agent for a reseller or retail store.
Tip: If you have doubts about the source and ownership of
the wholesale closeouts merchandise you are considering,
ask. Most merchants in this industry will tell you up front
if they own and warehouse product or if they are simply brokering
between the retail site and the manufacturer or department
store. Either way, wholesale closeouts merchandise can be
challenging and profitable.
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