How To Flip Brand Name Closeout Pallets

A closeout pallet is essentially a
selection of merchandise that is
being sold in bulk.

A pallet can consist of a single
unit in a large quantity,
or a large assortment of
different items.

I have purchased and resold
various types of 
pallets, from store return
handbags to overstock dresses
to shelf pull shoes.

The merchandise is considered
to be a closeout when it's
being "closed out" from
a manufacturer, brand, department store,
wholesaler, or other retailer.

For example, a department store
might have purchased too
many designer handbags from
Coach, and now has decided
to "close them out."

The department store will
liquidate those handbags
by packing the bags in 
boxes and then stacking those
boxes and selling them
as one lot.

Depending on the department
store, the management 
might have decided to
liquidate them at or 
below their cost.

The reason why the department
store, or any seller for that
matter, will sell the 
handbags at below their cost
is because otherwise they
would have to take a complete
loss on their unsold inventory.

Through their liquidation sales
they are able to recoup some
of the money that they
spent on purchasing
their designer products.

As the buyer of that
inventory you want to first
ensure that you
have potential customers
for the merchandise, or
that at least you can 
realistically find customers
for that merchandise.

Ask for a manifest 
so that you can see
what the contents are.

There might not always
be a manifest available,
which is fine if you
can inspect the 
merchandise, or are
very familiar with the
product category that is
packed inside.

If you are purchasing
department store overstock
or store return pallets,
I would recommend that you
visit the actual stores
to see what kind of 
merchandise the department 
store carries.

If you cannot visit a location
in person, and you don't
have anyone that can do so
on your behalf, then at least
visit the department store's website.

Flipping a pallet is
the process of 
reselling the entire
contents of the
pallet without
having to open
the boxes and selling
the items one at a time.

Although you will
probably net more 
by selling the items
individually, you might
be satisfied in
having a smaller profit
but in knowing that you
won't have to go through
the effort of selling all the
products individually.

You really have to decide
for yourself which option is
better for you depending
on your personal situation.

My own business, 
CloseoutExplosion.com,
allows you to basically
make your own pallets
by visiting the closeout warehouse.

Many warehouses will
allow you to inspect the
contents of a pallet,
so you might want to
visit the wholesaler
that you are considering
doing business with.

Here in New York,
where my business is located,
there are literally hundreds,
if not thousands, of
wholesale suppliers.

Below are
10 strategies for flipping
closeout pallets.

Before you
read these strategies
I would like to mention
something to you.

Although these strategies
can take a lot
of work, I believe
that the potential is there.

Ultimately you're 
going to have to refine
and test out these
business marketing
strategies to see
which one of them can
work for you.


Strategy #1

List it on eBay.

Although most people
associate eBay with consumer
sales, there are plenty of
business to business transactions
taking place on eBay.

There are specific wholesale
categories on eBay that you can
list your auction at.

Strategy #2

Create your own wholesale website
through a hosting company
like GoDaddy.com or Shopify.com 

You would then list your
merchandise and start marketing
your wholesale site to
closeout buyers.

You can use Google Adwords
or Facebook pay per click
ads to market your site.

Strategy #3

Create a Facebook group
and invite wholesale and
closeout buyers to join it.

You would then list your
available inventory in the group.

Strategy #4

Post your lots on 
your personal Facebook 
page.

You just never know
which one of your friends
knows someone that
might be interested in
purchasing the pallet.

I have gotten a decent
amount of business contacts referred
to me through my Facebook friends.

Strategy #5

Look up wholesalers online,
call them up, and follow up with
them by sending them an email
describing the pallet that you
have available for sale.

Strategy #6

Cold call stores. Retailers 
need a constant supply
of new merchandise if
they want their shops
to thrive.

If you live in a 
busy city like New York
you can find many boutiques
that can buy a large
quantity of merchandise
from you.

Strategy #7

Visit your closest 
fashion district,
such as the New York Garment District,
and look for vendors that
deal with the type of
products that you have. 

You would then offer them
the pallet that you
have purchased.

Strategy #8

Look for Amazon sellers
on Facebook, and on other
online wholesale forums,
and then let them
know what it is that you
have available.

If you are going to use this
strategy you will want to
fully research your product category
on Amazon. 

If you want to convince an
Amazon seller to buy your
products you will have to
give him or her a compelling
reason why.

So if your closeout pallet
contains wholesale Calvin Klein
dresses you will have to
research how Calvin Klein
dresses sell on Amazon.

The same is true if you
decide to market the pallet
to eBay sellers.

One important note
is that certain products
can be restricted on Amazon
and on eBay, so you
need to verify what
can be sold, and how
it can be sold.

Strategy #9

Contact wholesale warehouses
and offer your inventory to them.

Because of the nature of their
business, wholesale warehouses
will need to pay really low prices.

The advantage in selling to them
is that they can be serious and eager
buyers.

Remember that these warehouses
primarily supply off price and
discount merchandise to retailers,
so they will need to pay below
wholesale prices for it to work
for them.

Strategy #10

You can also list your
pallet on liquidation.com,
an online auctioneer for
closeout and liquidation 
merchandise.

You might receive a
very low price, and
you'll have to pay a seller's
commission, but the upside
is that your closeout listing
can be seen by thousands
and thousands of 
potential buyers.