All retailers have display merchandise, discontinued and shelf pulled items. In addition to as much as 6 percent of all items sold at retail level will be returned. Processing returns alone is estimated at a 200 billion dollar industry.

With all this merchandise, larger retailers hire or partner with companies to handle liquidation. A high percentage of this merchandise will be in new or like new condition and even some still in the original box.

Some of these third-part liquidation companies bring the merchandise into their facility and will “cherry pick” the loads (pulling out the best items). They will then markup the items and offer the remaining merchandise for sale to retailers, flea marketers, and online auction sellers. You are stuck with the hard to sell or slow moving merchandise.

Almost all closeout companies will advertise, “We do not Cherry Pick pallets or loads”. Can this be true? I am sure there are some companies who honor this guarantee, but proceed with caution.

Some liquidation companies will also operate a retail store or sell online through Ebay. Be weary of a wholesale liquidation company that also retails merchandise. Ask up front when buying your pallets or truckloads. Research the company you are going to buy from to make sure that they do no retail merchandise.

You want to make sure that when you buy pallets or truckloads of closeout merchandise to resell…you are getting all of the cherries (High value, fast selling merchandise)

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The company or liquidator I want to buy from is requesting a “Wire Transfer”. What is a “Wire Transfer”? A Wire transfer is a method of transferring money from one entity to another. A wire transfer can be made from one entity’s bank account to the other entity’s bank account, and by a transfer of cash at a cash office.Wire transfers are common place in the closeout industry. Large third party liquidation companies will require your payment be made by wire transfer when buying closeout merchandise. A bank-to-bank wire transfer has the advantage of being much more secure and desirable than other forms of wire transfer transaction like Western Union. If a cash wire transfer (for example through Western Union) is used to purchase something from a private party, the seller can provide false information to the sender of the wire transfer. Cash can be collected at the receiving end under the false ID, and the party can disappear without ever providing the promised goods. Law enforcement is also concerned about subversive organizations using the anonymous method of wire transfer to fund illegal activities.

Do not use a Western Union transfer to purchase closeout or excess merchandise. If the seller you are buying from does not have an established bank account and will not accept a Bank-to-bank transfer….find another company to buy from.

All Retail stores, catalog companies and manufacturers will ask that you pay for your closeouts by Wire Transfer. It is an industry “Standard”.

To initiate a wire transfer to pay for Pallets and Truckloads just go down to your local bank with the sellers business name, full address, bank institution name, routing and account number (All should be given to you by the selling company upon agreement to purchase). Wire transfer typically will cost you the buyer between $5-$20 depending on your banks fee schedule. Remember that the seller will also be charged a fee for receiving the wire transfer. Once wire is completed the seller should notice the funds in their bank account within 24 hours or sooner.

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