How to Start a Closeout Retail Business
A closeout retail business usually offers name-brand merchandise at a substantial savings. While some retailers may have warehouse outlets for selling these items, most have other sources for selling off their merchandise. This can create a potentially lucrative career for the savvy entrepreneur who knows how to find these items wholesale and sell them either online, at flea markets or through her own retail location.
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Things You'll Need
- Internet access
- Wholesale supplier
- Selling site or location
- Merchandise
Instructions
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Start Your Closeout Retail Business
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1
Decide which types of products you want to sell. Visit local flea markets and find out which of these items and brands are selling best. Check the bulletin board for business cards and fliers from closeout suppliers. Call them and find out if they will supply items in smaller lots. Get a schedule of flea market start times and dates as well as fees.
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2
Decide how you want to sell your merchandise: online, at flea markets or at a retail location. Sign up for various flea markets once you have a supplier lined up. Go to an online auction site such as eBay.com and find out which brands are available in lots. Start your online efforts at eBay.com and Yahoo.com if you want to sell online. Secure a relatively small and inexpensive retail location if you plan to have a storefront.
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3
Go online and search for closeout or surplus items. Contact these wholesalers and find out if they actually own the products. Ask them about the condition of the merchandise, unit cost and if there are any price breaks for larger orders. Find out if any of the wholesalers drop ship or send individual items to customers, if you plan to sell your products online. Find out which ones sell items in small lots. Contact people at Thecloseoutclub.com for any items they may stock. Continue contacting suppliers until you learn what items are available and their unit costs. Study the offerings of each supplier. Narrow your choices down and select the one that best fits your needs.
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Visit the supplier if possible. Verify the company's credentials. When you are satisfied, place your order and start selling.
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Tips & Warnings
You stand the best chance of success if you sell items that are exciting and interesting for you. For example, if you love clothing and know about the latest fashion trends, consider selling stylish clothing brands such as surplus stock from JCPenney, Bloomingdale's and Calvin Klein. Do not focus on any specific brand. Choose the ones that you give you the largest potential markup. You are better off focusing on either online or retail sales--not both. It will take you time to learn what you are doing. Flea markets are easy to add as needed.
Never buy products in large volume from unknown dealers. Stick to small lots as you can lose a lot of money through unscrupulous operators. Also, never buy salvage goods as these are often damaged. You will hurt your reputation if you try to sell these types of products.
