Closeout Brokers are in a unique position within the closeout business.
Closeout brokers are facilitators that connect closeout sellers to closeout buyers. Since their business is simply making successful matches between buyers and sellers, they can earn money without having to buy, stock, or deliver products.
A closeout broker is a business person that locates the owners of merchandise, negotiates a price, and then locates buyers for the merchandise. The closeout broker can either make money by marking up the merchandise, or by receiving a commission from the seller.
Since the closeout broker does not stock or ship the merchandise, he can work from anywhere provided that he has a phone and an internet connection.
A closeout broker can even sell the merchandise on eBay, provided that he works out the shipping details with the seller. Once the auction is done the broker would supply the seller with the customers shipping address. The order can be even shipped with the closeout broker’s contact information as the return address.
By having the merchandise drop shipped the broker avoids the logistics issues that shipping entails.
To start working as a closeout broker you will need to form a relationship with wholesalers. Wholesalers have merchandise in large quantities, and are set up to deliver merchandise to your customers. Have a solid agreement with them in place so that issues will not arise in the future.
Your next is to compile a list of prospective customers.
Wholesalers once again top the list. Wholesalers by their nature need to buy merchandise in large quantities. Additionally, compile a list of dollar stores, clothing stores, flea market vendors, and eBay sellers.
Just make sure that he seller is willing to sell in smaller amounts, since small stores will only order in small quantities. The same goes for flea market vendors and eBay sellers. If a wholesaler is unwilling to sell merchandise in smaller quantities, offer him a slightly higher price for his goods in exchange for smaller quantity sales.
Small retailers and vendors understand that the price they pay is dependent on the quantity ordered.
To maximize your earnings as a closeout broker you need to develop repeat customers for your deals. Even if your deals change you can offer them to your customer list.
Being a closeout broker is a lucrative business which requires time and patience. Although the rewards are lucrative, work is still required.
Donny Lowy runs http://www.closeoutexplosion.com an online wholesale and closeout business that supplies brand name products to eBay sellers, retailers, and flea market vendors. Donny can be reached at 718-389-5502