A wholesale trader is an individual that
trades wholesale merchandise. The
wholesale trader is actively involved
in the buying and selling of
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
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
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
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
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
You can find these deals by developing
a network of contacts with brands,
wholesalers, closeout brokers,
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
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.