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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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