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Great Profits in Buying Closeouts

Aug 17, 2007
Many people are quite apprehensive when we take out buying closeouts. Most of these apprehensions come from limited knowledge what is really a closeout. Contrary to what you may be thinking, buying closeouts is just like buying new items. Closeout items are actually brand new products that are no longer sold for the wholesale cost. Which means, these products are either overstocks or discontinued items.

Does this mean that buying closeouts would mean buying reject goods? Technically, it may sound like it but actually it is not like that at all! Lets take the garments industry as an example of how things actually work in buying closeouts. We all know that the fashion industry is rather volatile when it comes to fashion trends. Every month, you get new fashion trends in one area, which would make the fad of the previous month kind of obsolete. However, in some areas, this fad may just be starting out and the things that went out of style in another place could be worth a fortune in another! Nothing is really wasted in the cycle. All you need is a good sense of trend coupled with fast and efficient buying and marketing system so let you catch on the main flow of business.

Where to start buying closeouts? There are many places where you can get good stuff. The Internet offers a lot of options as to where you can start buying closeouts and has them shipped to you for added cost. Most of this closeout merchandise is sold in bulk. Shipping options would mostly be F.O.B. (freight on board) shipping point or F.O.B. destination depending on your location. For instance, if you are ordering garments from London and want to have it shipped to Boston, you must agree with the London based seller before hand as to the terms of shipment to avoid unnecessary snags along the way.

Usually, sellers would offer their goods on a per pallet or Gaylord bases. Now, don't start getting mixed up with the terms here. Let me explain in first before you start to get lost in buying closeouts. A pallet is actually a wooden skid the size depending on the department store or warehouse where it comes from. There are department stores and warehouses, which offers a pallet ranging from 4 feet high to 6 or 7 feet tall. Inside these pallets, merchandises are stacked and shrink-wrapped to maintain good quality. On the other hand, a Gaylord is another form of container, which looks more of less like a pallet except that unlike the pallet, which is sealed, this one is open. Gaylord is mostly used for apparels. Minimum purchase usually applies in buying closeouts so you should be familiar with the pallet or Gaylord sizes that the seller is offering. Estimate how much space you have in your place before making your order or else you would have problems with storage space.

Although you get the best of both worlds if you trade or sell closeouts, there are also some risks involved in buying closeouts. First, since these are overruns and discontinued products, you will probably run into a few damage goods depending on the products. A word of advice specially those who are just starting, its best to start on non-breakables, non-fungibles and not mechanical goods to avoid ending with plenty of problematic items in your hand. Garments and books would be a good place to start when buying closeouts. For one thing, they are easy to sell and are always on demand throughout the whole year!
About the Author
Dustin Cannon is owner of JustArticles.com and writes on a variety of subjects. To learn more about closeouts and wholesale watches Dustin recommends you visit: WatchCloseouts.net
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