One of the best ways to make money

in the wholesale business is by becoming

a wholesale middleman. As a wholesale

middleman you will have the opportunity

to make money by matching up wholesale products

with wholesale buyers.

Essentially you are finding a seller, marking up the

inventory or taking a commission from the seller,

and then finding buyers for that inventory.

Since you are taking on the role of a middleman

you do not have to stock up 

on wholesale merchandise or rent a

warehouse to store it at. You simply

have to find customers for the 

merchandise. Once you make the

sale you can then either have the

merchandise shipped directly from the

wholesaler to your buyer, or you

can pick up the merchandise and

deliver it yourself.

While being a middleman is a

great way to become involved

in the wholesale business, in my

opinion the best way is to actually

be the owner of the merchandise that you

are selling. The reason is

because a middleman can make

a sale only to discover that

his source no longer has any

merchandise left. But if you

actually buy the merchandise

then you will be sure that you

have access to it when you

make your sales.

Having said that, you can

become a successful middleman,

just make sure that you know the

available quantity of products,

and that you stay in touch with your

wholesale supplier to ensure that

the merchandise is still available.


You need to develop a list of contacts

of wholesalers, brands, designers,

importers, closeout warehouses, 

jobbers, and exporters.

This is the list that you will use to

locate the wholesale merchandise that

you will be offering to your prospective

buyers. While you want to have

access to as many wholesale sources as

possible, your primary goal is to develop

a solid business relationship with

at least one supplier that you

can work with over the long term.

You can locate wholesale sources

by conducting searches on wholesale

search engines like,, and

You can also visit wholesale industry shows

such as the the ASD trade shows that take

place in Las Vegas and in New York.

Another highly effective way to 

develop wholesale contacts is by

visiting wholesale districts like

the New York Fashion District.

You are definitely welcome

to visit my closeout warehouse

in New York. I would be

happy to show you some

really good closeout deals

which you can market to

wholesale buyers.

Step #2

Negotiate a fair arrangement

with your wholesale sources.

Some of the points that you

will want to cover are:

the price that you will be paying,

who will take care of the shipping arrangements,

what happens in the event of a return

request, what if a customer wants to

inspect the merchandise in person,

and any exclusiveness which your source

might give you for a specific area.

The best way to develop and keep

a positive business relationship is

by discussing all concerns ahead of time.

Make sure that you both clearly

understand what you are both

agreeing to.

Make sure that you work

with people that you trust,

since there will be many

unexpected situations

that can arise, and you

want to be secure in knowing

that your source will 

help you through it.


Compile a list of prospective buyers

based on the type of merchandise

that you have access to.

If you have access to brand name dress suppliers

then you are going to compile a list

of boutiques that are looking for those

types of dresses. You can also market them

to other dress wholesalers. 

So how do you find your prospective 


You can go online and use a directory

that lists stores, and do a search for

stores based on the type of 

products that you are selling.

With the above example you

would look for a list of dress boutiques.

You can also gain access to a list of

stores and wholesalers by

purchasing a trade directory

for the industry that you will

be involved in.

Once you have your list you

want to call them up,

introduce yourself, and ask them

if you can send them an email

with information on what you do,

and the products that you are selling.

You will want to keep a separate list

of buyers that seemed interested in,

or actually bought, the merchandise

which you are marketing.

I once cold called a dollar store

and got a sale on my first call.

So be prepared to make the sale!


I would recommend setting up

a wholesale website so that you

can refer retailers to it. Whether your

website is a wholesale e-commerce site,

or an informational site, make sure

that it contains a form through 

which people can contact you at.

People that are not on your

list might find your website 

when searching online,

so you want to be able to

capture their contact information

so that you can add them to your list.

You should indicate on your website

that you are also looking for wholesale

product sellers that are looking to

reach more buyers. This way

if a wholesaler sees your site,

he or she can reach out to you

and you can become a middleman

for their merchandise as well.

Some of the best wholesale deals

that I purchased where from

businesses that found my website

and then contacted me to

see if I was interested in their


While cold calling manufacturers

is a great way to find merchandise

to sell, I am sure you would agree 

with me that it's a lot easier when

they call you.


Always keep your business growing.

You want to be constantly looking for

new product sources and for new buyers.

The reality is that some of your

wholesale sources will go out of

business, or run out of merchandise to


For instance when I first started

my closeout business I called a factory that 

manufactured kids socks. Since they

closed the factory I had to look

for other sources for wholesale kids socks.

Or a buyer can close their store.

While I have customers that I have 

supplied merchandise to for years,

I sometimes call a customer only

to find out that they have decided to

close their store. It's for that

exact reason why you will

always want to look for new

customers to add to your list.

The very nature of the business world

is that there new businesses that open and

old businesses that close, so you need to be updating

your contacts all the time as well.

I know that this can sound like a 

lot of work, and it is. But that is

what is involved in being a middleman.

The upside is that if you

find one really good closeout source,

and you are able to profitably sell

a large quantity of the

closeout merchandise that is available, then you

can have some really good results.