Sales Channels: Better to place eggs in multiple baskets...

By Robert Cyr

I have had the pleasure of interviewing Alain Stambouli from Via Trading this past week and we discussed several key areas in the wholesale liquidation industry. Alain explained the sales staff at Via Trading is expected to work with each new client prior to a purchase making sure each customer understands what to expect when buying liquidation merchandise. Via Trading supplies hundreds of online ebay auction sellers with name brand merchandise.

(excerpt of interview)

Q- What advice can you give the small Ebay seller wishing to purchase liquidation merchandise for ebay?

Generally speaking standard advice is the more sales channels you have – the better chance you have of recuperating a higher amount on your inventory investment. For example: someone who sells at flea markets and on eBay has a much better chance of making more money then someone who only sell on eBay alone or vice versa.

Via Trading offers the following guidelines to eBay sellers –

• Aim to purchase High Value (low bulk) items (e.g. a low end microwave – retailing for $40 will not do well on eBay since shipping costs will be prohibitive
  
• Keep unbranded goods to a minimum as people tend to search for top name brands on ebay
  
• Depending on your business model – purchasing assorted wholesale lots (as opposed to large quantities of same item) will mean a faster turnover of goods for you and will minimize your risk in case any particular item for some reason or another is ‘price dumped’ in the online market
  
• Be creative and intuitive – Try to distinguish yourself form other sellers. E.g. if your selling shelf pull clothing – try to match up bottom with a top and sell as a set. If selling cosmetics, try to match up like colors and sell Lipstick, Skin, Eye as a set as opposed to individually.
  
• Keep a database of your customers and what they have purchased. With permission email them appropriate offers – discount coupons etc.

Alain Stambouli offered additional advice that I will be sharing with you in future blog posts, but lets talk a little more about diversifying your sales as explained above.

In addition to selling on Ebay you might try the following:

• Sell on Craigslist which is a centralized network of online urban communities, featuring free classified advertisements. Users are able to post "For Sale" items in dozens of categories. Unlike ebay, there are no fees associated with listing or selling merchandise!
• Sell at your local Flea Market or Swap Meet. Often dealer tables can be rented by the day or weekend. Large markets will attract tens of thousands of buyers every week. Flea markets are a great way to move merchandise that will not sell on ebay.
  
• Leverage the traffic from your ebay auctions to your own E-commerce website. Make sure you link your "About Me" page to your website and cross sell all auction winners with special discounts for future purchases
• Sell through local classified adds through your print newspaper. I know of several local ebay sellers in my city who routinely run two line adds daily

This post brought to you by:

The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

Soaring Profits with Wholesale Liquidators!

By Robert Cyr

I read recently about Viatrading's expansion from 63,000 to a massive 227,000 square foot warehouse and the news added another reason to reaffirm my opinion about closeout merchandise. Companies like Rgriley.com, Genco, Roden Surplus Imports and Ca Liquidators have continued to have impressive growth over the last couple of years due to the nature of their "niche" market. Yes, I stated the Buzzword "Niche" because wholesaling closeout or surplus merchandise in my opinion is a specialized sub category of wholesaling in general.

Why are liquidators who distribute closeout, surplus and customer returned merchandise doing so well? I believe the biggest reason is due to the current state of our economy in general. Consumers, faced with less spending power, want name brand products at "better than" fair pricing when they are out retail shopping.

Seasoned retail entrepreneurs understand that it is important to follow the trend of consumer spending in order to be successful. Small store owners and online auction sellers are constantly looking for inventory with brand appeal and the ability to purchase that inventory at the lowest possible price. The savings can then be passed on to a client base.

Enter wholesale liquidation merchandise. This niche category of wholesale merchandise includes overstock; customer returns and shelf pull items from the some of the Nations largest big box retailers. Sold in small pallet quantities, by wholesale liquidators, the average reseller can now offer top name brands at less than retail pricing.


Jargon used when describing Liquidation Merchandise:

Closeout Merchandise: New excess inventory no longer being stocked by a retailer.

Customer Returned Merchandise: Customer Returns are offered by department stores or catalog companies usually, a percentage of merchandise will be unsellable due to damage.

Overstock Merchandise: New merchandise that does not make it to the retail shelf. Usually deemed "Overstock" when a retailer has purchased more inventory than the store can sell.

Shelf Pull Merchandise: Inventory that has been sitting on the shelf for an unspecified amount of time and is pulled to be liquidated on the wholesale market to gain revenue for the retailer. May have retail price tags affixed.

If you retail through a traditional "Brick n' Mortar" store or if you are selling online through auctions like ebay, you should at least explore wholesale liquidation merchandise. often, you can purchase small pallet quantities of top name brand merchandise at unheard of pricing.

Visit wholesale liquidators right here at WholesaleEz.com

This post brought to you by:

The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

Plan ahead when using a Drop Shipper

By: Robert Cyr

Drop shipping does work, the concept and the process is not new. There are thousands of companies who openly advertise, "We will drop ship to your customer". Drop shipping has offered a sense of hope for many individuals who are are interested starting a business, but do not have a large amount of cash to invest.

Wikipedia defines drop shipping as - "a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer. The retailers make their profit on the difference between the wholesale and retail price."

Lets take an honest look into using this business model:

Advantages:

• No inventory to stock


• Ability to instantly have thousands of products to sell


• Total control over who you use as a supplier


• Product shipping/order fulfillment handled by supplying company


• You can run your business from home


• Drop shippers will typically allow you to use their image photos to advertise on your website or ebay auctions
  

Disadvantages:

• Unless you actually have the product in hand, you do not know condition or quality of any one item being shipped out


• Merchandise returns? Most, if not all drop shippers will not accept purchase returns from your customers. How then do you offer customer satisfaction?


• Sometimes orders placed with a supplier will be "out of stock"


• Product shipping/order fulfillment handled by supplying company. This can be a disadvantage as some drop shippers might process your orders too slow.

If you decide to use a drop shipper for order fulfillment the best way to succeed is to start with a business plan. Lets look at it this way..How many times have you found yourself using Mapquest or Yahoo maps on line for directions?

If you have a place where you want to go (destination) and you have never been there before... you would follow step-by-step instructions to get there, right? If your business idea is a destination for you into uncharted territory please follow a map (business plan) or you will inevitably become lost along the way.

Develop a strategy that will answer the disadvantages of dropshipping should they occur in your business. Be ready and prepared for the unexpected and your business will prosper. Consider the following suggestions when drop shipping:

• Use multiple companies to drop ship your products; why rely upon (or be at the mercy of) one?
• Follow up with your customers...Did they receive the merchandise in a timely manor? Are they happy with the purchase? Would they order again?
• After reviewing the performance of a drop shipper (order fulfillment) discontinue those that under perform
• Use drop shipping as a starting point for your business, work up to actually stocking the product you are selling. When you inventory the product you are in total control of the selling process from marketing to shipping

What is your experience with drop shipping....success or?


This post brought to you by:

The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

Economy Response: Wholesale Salvage Food

By Robert Cyr

As our Nation feels the "Crunch" at the gas pumps (surging well over $4 per gallon in some regions) angry shoppers are looking to cut costs in all areas of spending. Food, being a major staple, is one area where budget minded consumers are paying close attention. As Americans stretch their paychecks food wholesalers are seeing a steady rise in the request for deeper discounts.

Small surplus and salvage grocery stores are opening around the Country promising to offer name brand products discounted at unheard of pricing. This trend is in direct relation to our economy, savvy entrepreneurs understand that consumers are feed up with paying exaggerated pricing. Enter the wholesale Salvage food industry.

Where does this Salvage food come from?

Food becomes "salvage" after it is discarded by supermarkets because it has damaged packaging or nearing expiration. Large grocery stores will ship pallets of salvage food to reclamation centers where it is either donated to charitable organizations or resold to smaller retail outlets. Due to its Salvage nature often name brand products can be purchased at a fraction of the original wholesale price and thereby offered to consumers, once again, in a discount setting.

End resellers will buy this food sight unseen in whats called a "Banana Box". There are typically 24 banana boxes filled with salvage food on a single pallet. Banana boxed pallets will range in price from a low of $168 up to $288 depending on factors such as item quantities and condition.

To meet the demand of our slow economy individuals are opening discount salvage grocery stores at an ever increasing rate filling shelves with grocery items and aisles with budget minded consumers.

Within the last few weeks I have spent countless hours on the phone with salvage food distributors who have all reported the fact that "phones are ringing off of the hook" as the demand for wholesale salvage groceries has increased at least 50% over last year.

What is your experience:

1. Do you operate a salvage grocery store?
2. Have your sales increased due to consumer demand for lower pricing?
3. Are you experiencing difficulty in finding salvage groceries on a wholesale level?

This post brought to you by:

The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

WholesaleEZ Blog - Welcome!

Chances are if you are reading this post you have found this blog searching for wholesale information and resources. Welcome, please start by adding our feed to your reader or choose
to have this feed emailed directly to you. You will want to stay updated on all posts here as you will learn about the latest information relating to inventory sourcing, retailing and general marketing ideas. Our blog feed can be accessed by clicking on the "Feed" link found just to the left in the side menu.

My name is Robert Cyr and I will be posting here at the WholesaleEz Blog on a regular basis. Please make full use of the comment feature allowing you to ask questions, post feedback and become a part of this community.

I have been involved in the retail and wholesale industry for just over ten years in several different capacities. My area of specialty is that of the Liquidation Industry where I have successfully launched and organized several internet companies. I have extensive experience in brokering merchandise (arranging sales transaction finding both buyer and seller), importing, exporting and I am currently offering consultant services to small and large domestic companies.

I am passionate about every aspect of business and I devote a lot of my time to helping others succeed. I have worked with large chain stores down to the individual making a part time living selling on ebay. I am really excited about writing for WholesaleEz and I am certain I will meet a lot of interesting people here., but remember you are a contributor as well.... So please stay in touch with comments.

Benefit from using a Loss Leader Strategy

By Robert Cyr

There is a strategy in retail marketing which employs the use of a "loss leader" product or

simply put a product sold at, below or just above cost to elicit consumer interest.

Lets take a look at some loss leader examples:

Your local grocery store routinely utilizes the loss leader strategy to get you through the front doors. Watch for low prices on staple items including laundry soap, toilet paper and OTC (over the counter) drugs. The theory here is simple, you are drawn to the store to buy a few products at great pricing and before you leave you fill up the cart with other merchandise. It is not uncommon to place loss leader items at the back of the store that way you are forced to view other products (at everyday pricing) before checkout.

New Car Dealerships will continuously advertise vehicles at a very attractive price in print advertising. Look closely at the promotion and you will notice that the special pricing applies to only one vehicle or "One at this price". Dealerships will usually advertise the exact VIN (Vehicle Identification Number) of the "Loss Leader" and if you are not the first customer to purchase this vehicle you will then be encouraged to view other makes and models at the dealership. The coined phrase, "Bait and switch" comes to mind here.

Car dealerships use the loss leader strategy to peak interest and bring in a steady flow of potential car buyers.

Online or mail order music and DVD retailers advertise promotions which will offer the ability for consumers to purchase 10 DVDS or CD's at an unheard of price of one penny each! Who can resist this? Well, the fine print states you agree to purchase an additional amount of DVD's or CD's at regular pricing, plus shipping and handling within a specific time frame after the initial purchase.

Cellular phone providers will use the loss leader technique offering free cell phones to entice consumers. In order to qualify for a free phone you must sign a twelve or 24 month contract with the carrier and this is where the cellular company makes up for the initial giveaway.

The examples above illustrate the use of loss leader techniques and while you might be a small retailer, online seller or even a flea market vendor your business can benefit from the use of the loss leader strategy.

As a retailer you should always be on the lookout for wholesale pricing which will allow you to buy at a deep discount. Check with your suppliers on a regular basis for specials or closeouts which will allow to buy a particular item to use in your loss leader promotion.

This post brought to you by:

The Closeout Industry - offers a wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to

sourcing name brand merchandise far below wholesale pricing.

I Have Slow Moving Inventory!

By Robert Cyr

Every retailer is faced with the dilemma at one time or another... what to do with excess or over-purchased stock? Have you thought about other ways to turn "Stagnant" inventory into cash? There are several ways for an individual to liquidate inventory thereby increasing cash flow. Slow moving merchandise ends up costing more and more each day it remains on your self. Lets turn it into cash.....

Ebay - There are (as of today) 44,013 auctions found with the keyword "Wholesale". Sign up to become a seller and list your wholesale inventory on Ebay. Your excess merchandise might not sell in your store but, ebay attracts millions of potential wholesale buyers who are searching daily for just about anything in bulk quantities.

Liquidation.com - Here is an auction specifically designed to help retailers, wholesalers, liquidators, manufacturers and others move bulk items. The website boasts several categories of merchandise and just might be the solution you are looking for.

Surplus.net - Offers a way for individuals to send out a what they call a "Blast" email to all liquidation members explaining the merchandise you have for sale in quantity. Fill out the form describing your inventory and you could have several liquidators contact you with cash offers to purchase!

Aside from the three links above, many closeout company will buy excess merchandise in quantity. When you visit wholesale and closeout websites make sure you look for a link offering to buy inventory.

This post brought to you by:

The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

Get Friendly With Retail Packaging

By Robert Cyr

Lets get a "little friendly" with some wholesale terms today! I want to talk specifically about retail merchandise packaging. Manufacturers spend a great deal of money when it comes to item packaging with both the retailer and consumer in mind. Packaging must offer the retailer an easy way to display inventory and the purchaser wants to be able to view an item before a decision is made to purchase. If you have specific questions relating to how an item is packaged make sure you ask the wholesale company or distributor before you buy. Wholesale companies use industry jargon when describing retail ready merchandise:
Blister Carded: A type of product packaging with a clear plastic semi-rigid plastic shell and a hard cardboard backing. Displays products clearly to the consumer but still provides the security of a theft resistant package.

Window Boxed: Cardboard box with at least one side protected by a clear plastic "Window" which allows the consumer to view contents. Used heavily in the retail toy industry.

Clam Shell: Retail packaging designed to open and close by a hinge along one edge. Clear plastic protective packaging also allows purchaser to view all sides of an item prior to purchase.

Display Boxed: A box specifically designed to be placed on a shelf or retail counter. Display boxes will usually offer product information including merchandising graphics designed to "entice" the consumer into a purchase.

Poly Bagged: Refers to an item placed in a polyethylene or polypropylene plastic bag which allows for merchandise protection and consumer inspection. Often used with a colorful or informative Header Card.

Header Card: Cardboard folded card usually attached to the top of a clear poly bag in which the item is held. Offers the consumer an easy way to view merchandise contents.

Skin Packaging: Product is covered by a closely fitting transparent film on one side and paperboard on the other. During sealing process a vacuum is used to draw the heated film around the product and bond it to the board.

Insert Card: Printed merchandising and information card used in conjunction with clamshell or other packaging.

This post brought to you by:
The Closeout Industry - A wealth of information centered around wholesale closeout merchandise. Author and consultant,
Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name
brand merchandise far below wholesale pricing.

Reselling Catalog Overstocks

By Robert Cyr

There are literally tens of thousands of mail order catalog companies shipping millions of dollars of merchandise yearly. If your like the average household you have a few retail catalogs laying around. Huge name brand retailers utilize catalogs to sell merchandise to those who either cannot leave their homes to shop or individuals looking for unique gift items.

The larger catalog retailers mail out new catalogs frequently offering new merchandise in the hopes of tempting a sale. If you have looked through a few catalogs you will notice that the successful mail order retailers spend millions of dollars in product merchandising, picture layouts and fresh new products with the intent to garner huge sales. They key to that last sentence is "Fresh" or "New" merchandise.

If you picked up a catalog and realized that it was filled with items you recognized from last year would you buy? Probably not. Successful mail order retailers know that inventory must be rotated from month-to-month, season-to-season or at the very least yearly.

This poses and incredible dilemma for mail order retailers. Old stock, last years models and stagnant merchandise must be liquidated to recoup cost or most of the time inventory is simply sold at a loss. Enter you the small retailer. Mail order and catalog companies are an excellent source for overstock merchandise! This is an area of product sourcing where you can literally purchase inventory for your business well below wholesale pricing

Start by finding catalogs in your home. Call the customer service number listed on the order page and ask for the corporate number or simply the individual in charge of liquidating catalog overstocks. Be persistent as this can be a tedious task. Once you have exhausted all the leads (catalogs in your home), search the internet for catalog ordering websites like - Catlogs.com. Order all of the catalogs that pertain to the type of merchandise you resell. Once they arrive start investigating until you get in contact with their liquidation department.

There are thousands of mail order catalog companies who have millions upon millions of dollars of excess merchandise to liquidate.

This post brought to you by:

The The Closeout Industry which offers a wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

Buying Wholesale - Shipping and Freight Basics

By Robert Cyr

Finding a wholesale supplier who offers low pricing is but one part of the sourcing equation. The merchandise you purchase must be shipped from your suppliers warehouse to your location. Smaller, compact order typically will be shipped using one of the three major carriers which are UPS, FedEx and DHL. UPS is by far the world's largest package delivery company delivering over 15 million packages daily. UPS, FedEx and DHL can deliver packages to your home without a "residential Fee" often charged by larger freight companies.

All three of the above shipping companies have a great tracking feature which will allow you to track your order from point of origin to arrival all by the use of a tracking number. The tracking system is a great tool for you as you will have an estimated day of delivery.

Depending on the size, volume and weight of your merchandise order the supplier you are buying from will often seek out the most economical way to have your order delivered. Each of the three shipping companies UPS, FedEx and DHL can handle large orders shipped in several boxes to one destination.

There is a point at which the cost associated with multiple boxed orders should be palletized and therefore shipped through a traditional freight company. It is much easier for the shipper (Company you are buying from) and more economical for you the “receiver” to have your order shipped LTL (Less than Truckload).

A pallet, which is sometimes referred to as a “Skid” is a wooden transport structure (Base) that supports goods in a stable fashion while in transit. A standard wooden pallet is 40″ by 48″ and can range in height due to the amount of merchandise being shipped. The shipper simply stacks boxes on the pallet and then uses shrink wrap to secure the merchandise while in transit.

How much does it cost to have goods shipped by pallet? This will vary due to may factors including the type of merchandise being shipped(class), weight and destination. On average shipping for one pallet will range between a low of $150 (Short distance) to about $400-$500 (across the Country). While this might sound substantial the advantage to LTL shipping is the fact that multiple pallets will lower your cost per pallet freight charge. For example: if one pallet being shipped costs $300 an additional pallet (Same Order) might incur another $75 there by lowering your actual freight cost per pallet to $187.50. It is advantages to order as much merchandise as possible to receive maximum freight discounts

Two key points to think about when ordering merchandise by the pallet:

• If you are having your pallet delivered to a residence there is usually a “Residential Fee” which will be added to your freight cost. Usually between $25 - $75 depending on the actual freight company. It is best to avoid this fee by having your pallet(s) deliver to a business address or the nearest freight terminal closest to your door.



• If you do not have a forklift or loading dock you will need to make sure the trailer is equipped with a lift gate. A lift gate will allow the truck driver to lower your pallet to the ground once delivered. A lift gate trailer will add an additional fee to your total cost usually between $30 - $50.00. Please note: if your pallet consists of smaller boxes stacked and shrink wrapped you might be able to have the driver simply cut the wrap and hand the individual boxes down to you with the use of a lift gate.

This post brought to you by:
The The Closeout Industry - a wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing.

Creative way to find Wholesalers Close to You

By Robert Cyr

Here is a method of which I have used countless times to locate wholesale suppliers that are within a specific driving distance from my geographic location.

Go to Ebay.com and look for the Item Search box. Next to the box just to the left you will notice a link which reads Advanced Search. On the advanced search page place the keyword Wholesale in the search box and then scroll down until you see an area that reads, “Items Near Me”. Check the box that says, “Items Within xxxx Miles of Zip or Postal Code xxxxx”.
Enter your desired radius and zip code and then hit the Search button.

All of the items now displayed by Ebay will have the keyword Wholesale and be within your local driving area. Scan through the listings to find the type of merchandise best suited to your business and then visit that auction page looking for any additional information relating to that sellers identity, business name or even email address. Those sellers who have merchandise to resell on Ebay will typically have an “About Me” page where you could find further information including a web address if they have one.

I have found several large wholesalers close to my home using this method. It is one method I use continuously to discover and network with wholesale contacts that are close in proximity to my hometown.

This post brought to you by:

The The Closeout Industry - a wealth of information centered around wholesale closeout merchandise. Author and consultant, Robert Cyr has educated thousands of entrepreneurs offering advice relating to sourcing name brand merchandise far below wholesale pricing. .