Multiple markets create further cash flow

Readers here at the TopTenWholesale Blog will be astounded today as I am about to unleash a cutting edge Top Eleven List offering ways to sell wholesale and liquidation merchandise.

I know the advent of a top 11 list might be a “walk on the wild side”, but bear with me. Everyone loves the good ‘ole top 10 list including viewers of the popular Late Show with David Letterman, but please remember when Top 10 lists are superseded by 11…you saw it here first. I expect full credit.

Successful retailers understand that cash flow is critical and when sales are down it might be a good idea to look for additional ways to market inventory….

1- Ebay We have to start with this auction giant. There are tens of thousands of “brick and mortar” retailers who supplement their income by auction selling. What doesn’t sell in your store can be sold online through ebay’s global market reach.

2- Craigslist – Ebay is a shareholder in this online classified website, but ebay does not have a large enough stake to influence Craig to start charging for listings! Here you can list merchandise in your geographic region for free. Upload pictures and await the emails and phones call to come…believe me they will. Craiglist is a highly visited site

3- Website – Maybe it is time to to start your own dot com empire? A wesbite will give your customers a way to visually view your products through an online catalog. The first step is deciding on a domain name…you know like www.yourname.com. You can register a domain name at www.godaddy.com for as little as $9.99 per year.

4- Classified Ads – Yes, they still print a newspaper in your hometown. Many who subscribe to the “Old School” mentality still browse the classifieds in print. I have sold a diverse offering of merchandise through my local newspaper. Give it a try-

5- Garage Sales – Maybe in your neck of the woods called a rummage sale. People love to get up early and find great deals driving from sale to sale. Word of advice: if you advertise your sale starting at 8:00 AM expect “early Birds” to start coming around 7:15

6- Flea Markets – Depending on your area, flea markets or swap meets are a great way to showcase your inventory for a reasonable per day fee. Some of the larger flea markets will have upwards of 20,000 – 30,000 visitors in a single weekend. Now that is exposure.

7- Event Sales – One or two day sales where you rent a portion of a parking lot or an actual storefront to “Liquidate” merchandise. Advertise locally and make sure you have adequate staff on hand to assist with the frenzy of sales.

8- Rack Merchandising – Start a local route re-wholesaling your products in retail stores. You can negotiate with store owners to place inventory in each store on consignment. You get paid by the retailer when your products sell. For example…if your main product line is jewelry you could merchandise your products in apparel stores, beauty shops, discount stores etc. Make sure to revisit each store on a regular weekly or bi-weekly basis to restock and invoice for items sold.

9- In-home Parties – Serious money here as giants like Tupperware, Home Interiors and other companies understand that networking with friends can be lucrative. Model your business just like the pros and host partys inviting family, friends, coworkers and strangers off the street. Ok, maybe not complete strangers. Set up a marketing compensation package to recruit others to hold partys and sell your merchandise. At each gathering setup your display merchandise and take orders while eating cookies and socializing.

10- Live Auctions – Every medium to large city will have a traditional live auction house where you can offer your merchandise for consignment. The average the commission charged by auctioneers will range from 8-12% of the final bid. I know of a very successful friend who purchases “scratch and dent” furniture by the truckload and auctions it off for huge profits!

11- Festivals/Fairs - Check your geographic area for scheduled 1 and 2 day events which allow retailer vendors. Often these events will attract tens of thousands of people who love to spend money on souvenirs and miscellaneous wares

Tracking Moving Targets: How to Stay on Top of Wholesale Merchandise Trends

A little online market research can go a long way when you need to track moving trends: Latest fashions, must-have lifestyle gear, best-priced jewelry, designer and knockoff shoe brands. Here are some look-out posts, social media lurking sites, and top deals listings.

Look Out Post #1: Search Trends by Keyword, Brand Name, Category.

Go to http://www.toptenwholesaletrends.com, select a time period from the drop-down box, then enter words for the merchandise you are stalking: womens handbags … mens leather … plus size denim jeans … urban and hip hop clothing … fashion watches … backpacks for adults. Alternatively, plug in search terms for the brand name of your choosing.

A click of the search button gives you a graphic line chart showing how popular – or not – your searched merchandise is. This Trends charting from TopTenWholesale dips a toe into a wholesale search database that draws from over 20,000 buy/sell search actions a week. You are pulling popularity stats – totaled search results — from manufacturers seeking resellers, power auction resellers searching for product sources, and wholesalers stalking the best off-price and returned merchandise lots.

Lurking Post #2: Hang Out in Social Media to do Buzz Checks.

Surveyors of online user behavior — Pew Internet and American Life Project – recently published results of the Internet’s influence on politics and social participation, especially among youth. Key was the UNFILTERED and NO-SPIN nature of information exchanged at social media sites; sharing the latest and greatest without going through middlemen like newscasters, publisher’s editors, advertisers or other folks with an agenda. Unfiltered and uncensored opinion.

The Pew Project simply supports what we already know: Lurking and listening at the right social media and social networking web sites can provide up-to-the-minute trend and marketing info.

· Youth Hangouts (Ages 18 to 29): Facebook, MySpace and Most-Viewed Videos at You Tube.
· Boomer Lifestyle Sites (Ages 45 to 60+): Second Life, Gather.com.

Daily Deals Lists #3: Check Top Deals Lists to Learn What Moves.

Go to main category pages at eBay, such as Fashion & Apparel or Electronics. You’ll often find a list of most active products at auction, by product or brand name, for a quick merchandise pulse check.

TopTenWholesale offers a Top Ten Daily Deals list that draws from patterns of buyer and seller search activities in over 20,000 wholesale searches on our industry network. (TopTenWholesale, OffPriceNetwork, WholesaleU, Wholezilla) See http://www.toptenwholesale.com/daily-deals.html for lists and links to the day’s hottest merchandise. Sample Top Ten Daily Deals include the latest fashion watch that tells time and holds a portable Flash drive, the most text-friendly cell phones, backpacks for grown ups from makers of the Swiss Army knife, and Lifestyle Gear (the latest healthy food dehydrators; right-priced adjustable training weights).

Intimidated by Freight shipping? – Get over it!

The thought of having wholesale or liquidation merchandise shipped by a freight company can evoke outright fear into many individuals. It is ok, take a deep breathe…we can get through this together.

Shipping pallets by a freight company is really similar to having merchandise delivered by UPS (United Parcel Service). Yes, the trucks are bigger and I know you are wondering if you will need a forklift or loading dock to receive pallets…

Most wholesale and liquidation companies are frequent freight shippers and receive discounts based upon the volume of shipping they do on a regular basis. In most circumstances when you purchase a large volume of merchandise from a wholesaler they will arrange all aspects of shipping to your door.

If you are faced with scheduling your own freight I am going to recommend that you use the services of a freight Broker for the first couple of shipments . A broker will quote and arrange shipping for you charging in most case a modest fee.

I speak from experience on this issue as my first freight shipment (3 pallets) was arranged through the services of FreightQuote.com. All I had to do was answer a few simple questions online to get a quote. Once I entered the details of my shipment I was given several choices of carriers and cost. The information needed for the quote was very straight forward and they do have a customer service phone number if you have further questions. After using this service a couple of times I felt confident enough to open my own freight account with a large national freight company.

Whether working with a freight Broker or direct with a trucking company you will need to provide some key information to get a freight quote including:

• What is the origin and destination zip codes?
• What is the weight of the shipment? This is a critical requirement as all freight companies will re-weigh your shipment to make sure you are being charged correctly.
• Number of pallets being shipped?
• What type of merchandise is being shipped? This will determine freight class (See terminology below)

Freight Terminology:

FOB – Acronym for Freight on Board. An FOB point describes where specific merchandise is departing from, or rather where merchandise being shipped should be picked up. When you are shopping for wholesale inventory an advertisement might read:

“Name brand electronics pallet $500, FOB Los Angeles, CA.”

You now know where this pallet will be shipping from

Bill of Lading – Also referred to as a BOL or B/L – This is a document which establishes the terms and conditions of a contract between a shipper and a transportation company. The BOL is provided by the freight company to the shipper and will include information such as, type of merchandise being shipped (class) and specific delivery instructions if necessary. If you are having merchandise shipped you will be required to sign the BOL once merchandise has been delivered as evidence of receipt.

Freight Class – Refers to the National Motor Freight Classification (NMFC) and it is the category of your freight as defined by the National Motor Freight Traffic Association (NMFTA). Your merchandise being shipped will be categorized under a specific Class which will determine the freight companies shipping charges. When a Class category is assigned it tells the freight company details about merchandise being shipped including, but not limited to, item weight, volume, value and how fragile items are. FYI – There are 18 freight classes ranging from class 50 (the least expensive) to class 500 (most expensive)

Residential Fee – If you are having your pallet delivered to a residence there is usually an additional fee to pay. This fee usually costs between $25 – $75 depending on the actual freight company. It is best to avoid this fee by having your pallet(s) delivered to a business address or the nearest freight terminal closest to your door.

Liftgate Fee - You will need to unload your pallets and without a forklift you will need a Lift gate trailer . Adding a Lift gate to your delivery will cost an additional $25-$75 extra

LTL – Acronym for Less Than Truckload, which means the shipment does not completely fill an entire truck. A trailer can hold up to 24 single-stacked pallets (See chart below). If your shipment is less then 24 pallets it will be considered an “LTL” shipment.

Wholesale Shelf Pull Apparel Explained

We are going to journey today into the category of Wholesale “Shelf Pull” apparel. This is a very popular category of liquidation merchandise sought after by ebay sellers, flea market vendors and exporters. I want you to fully understand what Shelf Pulls are and what to expect when buying this category of wholesale merchandise to resell.

The following are actual photos from a recently purchased shelf pull apparel pallet received from a liquidator. This pallet of merchandise was described as, “A Nice Mix Of Casual Dresses, Formal Dresses and Special Occasion Dresses With Some Suits And Separates. Brands Can Include Jones New York, Liz Claiborne, Kasper, XOXO Dresses, Elie Tahari, Rampage Nine West, Donna Morgan, Calvin Klein, Adrianna Papell, Jessica Howard, City Triangles, Donna Ricco, Maggy London International, and More”

Wholesale Shelf Pull merchandise simply refers to items that have been removed from a retail store usually after a series of pricing markdowns. The rationale is simple…If an item does not sell… liquidate it to a wholesale distributor and thereby increase cash flow. Shelf pull merchandise is a big mixture of items that did not sell for various reasons, maybe due to “end of season” or just “too many” of one style.

Shelf Pull merchandise can be considered new merchandise, but remember items will have been handled by several individuals before you purchase them. Keep in mind that some apparel items may have been tried on in the store by shoppers. Once “deemed” shelf pull by the original retail store, items are usually placed into a large cardboard box called a Gaylord. The Gaylords are then placed onto pallets and shipped to a reclamation center or a wholesale liquidation distributor who will then sell in smaller quantities to ebay sellers, small retail stores etc.

I cannot stress enough that Shelf pull apparel is a big assortment of sizes and brands. It is possible to receive duplicates styles. Most liquidators who advertise this category of merchandise will advertise brand names you might see in your purchase. Do not be led into believing that the name brands listed will necessarily be included in your purchase. Again, expect an assortment of all brands sold thought the department store they originally came from.

Each article of clothing will have a department store and/or manufactures sales tag unless it fell off in handling. In the ebay world of name brand apparel this is where we get the acronym, “NWTS” or “New with Tags”.

The first photo above shows an actual retail tag from this clothing pallet. All tags will have the manufacturers suggested retail price and then a series of markdowns in ink. This particular clothing item started out at $320 followed by $199, $160 and then down to $99.99

Once you receive your shelf pull apparel pallet you will need to do some additional work to make the clothing presentable or “retail ready”. This may include minor spot treating (from handling) and wrinkle removal.

Unless you are buying 200-500 pieces of clothing at any one time, small orders of 50-200 pieces can usually ship to your door by UPS or FedEx. The average weight for 100 pieces of adult apparel is approximately 130-150 pounds depending on the apparel season. Winter apparel weighs far more than Summer. Coast to Coast shipping via UPS or Fedex will average $50-$70 per 100 pieces.

Questions to ask when buying Shelf Pull apparel from a Liquidator:

• What store is this apparel originally from?
• Will this pallet contain any accessories such as socks, belts, jewelry and other items other than clothing?
• Will this Shelf pull apparel pallet contain any customer returns
• Are you shipping this apparel from your warehouse or is this a brokered purchase?
• What is my cost per piece?
• What season is the apparel from?
• Do you offer a quantity discount for larger orders?
• How much damage should I expect with this purchase?

Google your wholesale supplier….or Else!

Have you, or a loved one, experienced a wholesale or liquidation merchandise purchase that went terribly wrong?

Authors Note: Sorry..I could not resist adding “or a loved one” line in that sentence, it reminded me of the motorcycle accident commercials that are run continuously on daytime TV

Back to business, this is a serious topic…

Your Internet browser is an incredible tool which allows you to instantly search for wholesale and liquidation merchandise by simply typing a few key words. Once you hit the “enter” button after a search query you will notice page after page of companies advertising wholesale merchandise. Sitting in your living room or from your office how do you know which company to buy from?

Anyone with a few hundred dollars can produce a website and start offering wholesale or liquidation merchandise for sale…Do not trust “Just Anyone” with your hard-earned money.

If you have spent time researching a specific category of wholesale suppliers you have probably come across industry forums like WholesaleU. The forum provides a way for individuals to network with others who are connected to the wholesale Industry. If you are not networking with other wholesale buyers I suggest you sign up for a free forum membership at WholesaleU and start benefiting from tons of industry information.

The forum offers several different topical categories, however I want to bring to your attention one titled, The Good, The Bad & The Ugly . This topic has over 360 posts either asking about the validity of a wholesale supplier or revealing individual purchases that went wrong. This is a great resource for you in the pursuit of finding trustworthy, legitimate wholesale suppliers. I cannot tell you how many people I have spoken with over the last 5 years who have lost thousands of dollars attempting to purchase wholesale and/or liquidation merchandise from fraudulent companies.

In addition to researching through industry forums there are other websites which will allow you to further investigate the validity of wholesale suppliers you are thinking of buying from:

The Better Business Bureau You can search the online records of the BBB looking for consumer complaints associated with a particular business or website.

RippoffReport.com – This website allows disgruntled consumers the opportunity to publicly “voice” details of a purchase that they were unhappy with for various reasons. Ripoffreport also allows rebuttals from the company of which the complaint is directed to.

Network Solutions – You can enter a domain address in the “Whois” search to find out when the domain was registered, administrative contact information and often a phone number for the domain owner. This can be a great tool when researching a company. Some domains are registered as “Private” and all contact information is not available. This is a great tool to use when a website does not list a physical address!

Google Maps – If you cannot travel to a wholesale or liquidation companies’ warehouse you can map the location. Often you can zoom in through Google’s satellite feature to see specific location details. Why would this be beneficial? Well, if you are told an address is a warehouse, but you map it out to be a residential home you probably should find another company to buy from.

When I am buying wholesale or liquidation inventory from a new company I follow a six step procedure:

• I carefully read through the entire website in question reviewing payments accepted (checks, credit cards etc), merchandise returns and shipping information. I ask for clarification if needed.
• I contact the company by email and phone asking specific questions about the company’s history and detailed information about the merchandise I am interested in purchasing.
• Ask for customer referrals. Be specific in requesting names and phone numbers of individuals who have purchased similar merchandise in the past. Understand that some companies have strict privacy policies in place which do not allow for disclosure of customer information.
• I like to “Google” the company in question, you will be surprised at information (both adverse and positive) which can often be found on the Internet.
• I visit industry forums like WholesaleU, Surplus.cc to actively look for company information.
• And lastly, I visit The Better Business Bureau, Ripoffreport, Google Maps and Network Solutions to further complete my research

Following the suggestions above will assist you in making “better informed” decisions. Please understand that not all companies have an internet presence or can be readily found (adverse information) by searching the Internet. I am a huge advocate for the old saying, “Fly and Buy”. The phrase basically means visit the company you are about to send or wire thousands of dollar to. A $500 plane ticket just might turn out to be the best investment you will ever make…..