If you have been involved in the wholesale
business for some time you are probably familiar
with the existence of New York wholesale warehouses.
These wholesale warehouses all have
unique positions in the wholesale industry.
These warehouse can be located in the
New York Fashion District, throughout Manhattan,
in Brooklyn, Queens, Staten Island, and in the Bronx.
You can also find wholesale warehouses in New Jersey.
Some warehouses are product specific,
which means that they focus on either
one product or one product category.
For instance, there are wholesale warehouses
in New York that focus on dresses. These warehouses
can belong to importers who are bringing in
dresses from overseas, or even manufacturing the
Then there are wholesale warehouses that specialize
in buying department store overstock. These warehouses
will have an arrangement with department stores
in which they buy the excess and unsold merchandise
that the department stores have.
For example, my business, CloseoutExplosion.com,
specializes in purchasing overstock from department
stores. So for instance, I will receive brand name
dresses that the department store had for sale.
These dresses might not have sold because the
store had too many of them, or they simply
had a slow sales period.
In addition to department store overstock,
New York wholesale warehouses can
carry store return merchandise.
Store return merchandise consists of
products that were purchased by consumers
and then returned to the department store.
Products could be returned because
the customer decided that the price
was too high for what they bought, or
they noticed a damage when they got home,
or they even damaged the product and
brought it back to the store.
You would be surprised at the liberal return
policy that department stores have.
They would rather keep the customer
relationship even if it means giving
back a customer money for an item
that the customer damaged.
The thing you have to keep in mind
is that not all store returns are significantly
damaged, or even damaged at all.
Customers might return items simply because
they changed their mind about their purchase,
or received the item as a gift.
So when buying wholesale store returns you need to be aware
of what it is that you are buying. If you
can inspect the merchandise I highly recommend
that you do so.
While there are no constants, from my experience
about 50% of wholesale store returns are in
brand new condition, 25% are slightly damaged,
and 25% are really damaged. These numbers will
vary, so you need to do your own research.
The advantages of store return products is
that the price per unit is much lower than
that of overstock products. And if you can
repair the damaged inventory, or at least
sell it at a small profit, you can come ahead.
Imagine a dress with a broken zipper. If you
can fix the zipper, or sell the dress to someone
that can fix it, then you should be able to
turn a profit on the dress.
When visiting a wholesale warehouse in NY you
need to know if they carry overstock products
or store return merchandise.
While I have sold store returns
in the past, I now focus
on only overstock merchandise,
which is basically in brand new condition.
Another type of wholesale warehouse that you
will encounter will belong to a jobber.
A jobber is someone who goes around looking for
wholesale and closeout deals, and then
shops those deals around to other wholesalers
You can benefit from dealing with a jobber because
he or she can have connections that you
do not have. So the jobber can give you
access to wholesale merchandise that
you would not know about otherwise.
There are also NY wholesale warehouses
that belong to brands and designers.
To buy products from these warehouses
you will have to go through the corporate office,
or through the designer.
You never want to purchase merchandise
from a warehouse employee unless
you know that the owner has given the employee
permission to sell to you.
There are also closeout warehouses like
mine in NYC.
In a closeout warehouse you will find
an assortment of different products.
You can find brand name dresses, designer
women's suits, private label shoes,
fashion accessories, and so on.
It really depends on the business model of the
closeout warehouse, but generally speaking
the inventory changes as closeout buying
For my closeout warehouse I purchase department
store overstock, excess merchandise from the
brands, and store buyouts.
So while many of my categories are consistent,
I also have different types of products depending
on what opportunities come up.
One week I can get a call from a brand looking to
move their overstock designer dresses, and the next
week I might buy out a shoe boutique.
So why buy from a closeout warehouse as opposed to
directly from a brand?
Let's say for example you want to purchase
wholesale Tahari dresses. You have two choices.
You can set up an account with Tahari and purchase
dresses directly from the brand. The benefit is that you will
get the latest style, in the exact colors and sizes that you
But the challenge is that a Tahari dress with an original
retail value of $200 might have a wholesale price of
So if your customers can afford to spend over $100
for the Tahari dress then that might be a good option for you.
Now let's look at what happens by a closeout warehouse
like mine that sells Tahari dresses.
Since I purchase department store overstock,
the Tahari dresses that I have will be from a previous season.
Also the styles, colors, and sizes will be assorted.
But here is the best part.
I sell the Tahari dresses for as low as $19.99 each.
Although the wholesale dresses will be assorted,
you are buying them for as low as
90% below the original retail price.
So it's all a matter of knowing your priorities
when buying wholesale inventory for your
Another type of warehouse that you will find
are those that are owned by the retailers themselves.
For instance, a very large retailer in New York might
a warehouse where the inventory is received, sorted,
and then brought out to the store from.
I would recommend that you contact
retailers in NY and find out if you
can purchase any unsold or excess
merchandise that they have sitting around in their warehouses.
You might wonder why you should purchase
someone else's unsold products. And I could see
why you would hesitate. After all, if they got stuck
with it, how do you know that you will do better with it?
Well it depends if you have customers that
will be interested in that merchandise, and if you
could buy that merchandise at a low enough
price to make money with it.
Everyone has different customers, so your customers
might love the products that another retailer
could not sell.
Or simply the retailer might have bought more
units than she could sell to her customers.
So you can visit her warehouse, purchase her
unsold inventory, and then sell it to your
You should be aware that some wholesalers
sell by the pallet, some by the unit,
some have a minimum, and some, like myself,
do not have a minimum.
I would also recommend that you find
out if the wholesaler can arrange to ship
your products for you.
If your business is located overseas make
sure that the wholesaler can ship internationally,
or that you know of an international shipping
company that can pick up your purchases
from the warehouse.
I have many customers that buy wholesale
from me from as far as Nigeria, Kenya,
Australia, and Argentina. I am well familiar with
shipping products internationally so I am
happy to help you if needed!
One last tip.
When visiting a a New York wholesale warehouse
feel free to negotiate. As long as you are willing to
buy in quantity they should be just as willing to
offer you lower wholesale prices.