A wholesale trader is an individual that 

trades wholesale merchandise. The

wholesale trader is actively involved

in the buying and selling of

deals.




While a wholesaler will simply 

buy merchandise from his wholesale source,

and then resell it to his wholesale buyers,

a wholesale trader does not have

limit himself to any specific

wholesale sources.




As a matter of fact, many of his

deals might not even come

from traditional wholesale sources.




Another difference is that a wholesaler

will usually focus on one specific market,

whether it's ladies fashion, kids clothing,

or brand name handbags.




But a wholesale trader bases his business

on the opportunities that he or she discovers.




He does not limit himself to a specific

category, but instead only limits himself

based on the profit potential of

any merchandise that he comes across.




For example, a wholesale trader might

come across a fantastic deal online

for kids socks. The kids socks might ordinarily

be priced at $3.50 a dozen, but under this special

deal they are priced at $2.00 a dozen.




The wholesale trader will swing into action

and purchase those socks with the intention

of then finding buyers for them.




Now it might be more prudent to first

find the buyers for those kids socks,

but by the time the trader finds a customer

the socks might be sold out.




A trader will jump on a deal because 

of the perceived market demand

and potential margin that the deal

has.




That is the biggest difference between

a closeout broker and a wholesale trader.




A closeout broker will find deals and seek to

match them to buyers. The closeout broker

only places an order for the products once

she has received the payment from her customer.




This is an excellent way to minimize the risk of

purchasing merchandise that she won't be able to

sell, but it also can lead her to missing out on

many deals.




By the time a closeout broker finds

a buyer for a lot of designer dresses

those dresses might already be sold out.




A wholesale trader will actually purchase the

designer dresses assuming that she has

done her research and is confident

that she can find profitably sell them

to a buyer at a later point.




A wholesale trader might get stuck with merchandise

that she cannot sell, but at least she is positioned

to sell the merchandise that she does find.




I personally believe that the wholesale trader 

model is better.




If you actually buy the

merchandise you will be more motivated

to find a buyer for it. Basically you

will be forced to try to sell the merchandise since you

have already spent money buying it.




A closeout broker can easily move on if he does not find

a buyer right away since he has not

invested any money in purchasing the product.




The important caveat is that a wholesale

trader needs to be extremely well informed

about the products that he will be buying,

and needs to have very good relationships

with potential buyers.




When I first started my closeout business

I would purchase products without

considering who I would sell them to.

I ended up accumulating a lot of unsold merchandise

that way.




Now I try to think ahead of time who

I could possibly sell the merchandise to.




I also try to research the market

for those products to ensure

that the merchandise has the

characteristics that are demanded

by the market.




For example, if I see a deal

for a brand name men's polo shirt

I will call people to find out if that specific

polo shirt style is still in demand.




Even if I don't have a specific buyer in mind,

I base my decision on the experience

that I have in selling wholesale and closeout

merchandise to retailers.




One of the best ways to determine

if you will be able to find a buyer for

your wholesale merchandise is by calling

retailers and telling them about the merchandise

before you actually buy it.




If they seem excited then you know

that you have a deal with

possibly good potential.




Keep in mind that even if the retailers

that you contact are excited

about the merchandise it does not guarantee

that they will actually buy it. But at least

you will know that you are dealing with

products that are of interest to retailers.




Remember, if you wait until you

actually have a paid order for the

merchandise the deal can be sold out,

and then you will completely miss out.




Some people in the business are of

the opinion that there will always be

another deal in the future, but

I would rather focus on what

is available right now.




That is the reason why a 

trader will take a chance on

a deal before actually having

a customer who has agreed too buy.




The trader wants to secure the

merchandise so that when the

buyer is ready he can be sure

that he can supply it to the buyer.




You should also be checking out the wholesale

prices of the products on closeout websites

so that you can determine if you

will be buying the products at a low

enough price so that you can compete

with other suppliers.




So how do you find really good 

wholesale deals?




You can find these deals by developing

a network of contacts with brands,

wholesalers, closeout brokers,

and importers.




If they have an email list you

will want to join it.




It can be a good idea as well to

periodically call them to see what

they have available.




You should also visit your local department

stores and discount retailers. They will often

have highly discounted clearance merchandise

which you can potentially resell at a profit.




The most important ingredient is

your willingness to take action.




I have missed out on some really good

closeout buys because I hesitated literally

for a minute. 




While it's hard to eliminate the human trait

of hesitation, one way to overcome it is

by doing a lot of research into the

wholesale and closeout industry.




This way when you see a good deal

you will have the confidence

to make a decision immediately.




As far as selling the merchandise that you

will be selling, you want to do the following.




1) Develop a relationship with

retailers, flea market vendors, eBay sellers,

Amazon sellers, and other wholesale buyers.




You want to call or email them when you

have merchandise that is appropriate

for them.




2) Get into the habit of calling or emailing 

prospective customers as soon as you

buy merchandise that is suitable for them.




While I understand that cold calling a store

can seem daunting, I have actually made

sales and bought merchandise on account

of cold calls.




3) Set up a website where sellers can submit their

deals to you for consideration, and where

potential buyers can subscribe to be

updated regarding your offerings.




I would like to invite you

to my closeout warehouse

so that you can start the process

of becoming a wholesale trader

by seeing the below wholesale closeout

deals that I have.