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Wholesaling consists of the sale of goods/merchandise to retailers, to industrial, commercial, institutional, or other professional business users or to other wholesalers and related subordinated services

According to the United Nations Statistics Division, Wholesale is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise, to such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.


A closeout or clearance is the final sale of an item or items to zero inventory. It may be a given model of item that it not selling well, or in the case of the final closure of a retailer because of a relocation, a fire (fire sale), or especially because of a bankruptcy. In the latter case, it is usually known as a going-out-of-business sale, and is part of a liquidation. A "hail sale" is a closeout at a car dealership after hail damage. Often times, when the store is shutting down, they let people know that this is their last chance to buy the merchandise.

Overstock/Shelf Pulls Merchandise

Overstock Merchandise is just that what stores buy and do not sell. These may contain new items shelf-pulls, overstock, out of season, and liquidated merchandise. Most of the loads are in perfect condition with the tags and labels, but some on the other hand may have a slight chance of being slightly damaged due to shipping or human error.


When manufacturers come out with new models, old models become out-of-date and no longer desirable to sell. Discontinued merchandise can still be very valuable and useful (and in the collectibles industry highly desirable!), however is often sold to liquidators and surplus dealers at pennies on the dollar.

What is a "Customer Return Product" ?

Typically Customer Return Pallets/Loads are made up of a variety of products which a retail or major department store has decided to sell off in bulk at a much reduced price or items which it can no longer sell at their regular retail price - some of the reasons are that these items were or have:

(i) In Store display items

(ii) Out of box items

(iii) Items with damaged exterior packaging

(iv) Returned to the store by a customer and the store can not or does not want to re-shelf it.

(v) Cosmetic blemishes or slight defects

(vi) Missing minor or major components (such as either a remote control, manual, a cover, cables etc.)

(vii) Defective when returned by customer

(viii) One or more of the items features do not work

(ix) Overstocks

(x) Out of season items

Most of our pallets will be made up of customer return items though we have several Listings of only New or only Overstock Items

Can I know Exactly what is in the pallet before purchasing ?

Most transactions made in this kind of industry are made 'blind' (i.e. a manifested list of exactly what the pallet and/or truckload contains is not provided).

Certain department stores often do provide a manifest when we purchasing truckloads from them but more often then not, manifests are not available, or are only available with the truck once we receive it. When it comes to Pallet sales, the very large majority of pallets do not have a manifest and the only way we can provide one is by individually going through the pallet and manifesting each item inside - whence ourselves, and others in this industry do not and cannot provide exact manifests. Alternatively, we do provide approximate pc counts and value of each pallet when this information is available to us. We do also provide pictures of current or past loads and descriptions for each pallet/load that we offer.

How are the average values and piece counts calculated ?

Depending on the type of Pallet/listing - the average value and piece count is taken by dividing the total piece count and value of the truckload we purchased and then dividing it by the number of pallets. E.g. If we purchase a Hardware Load of say 10 pallets - we know that the total wholesale value of the load is $20,000 and the total piece count in the load is say 3,000pcs - if we divide that by the number of pallets - in this example 10 pallets, then we determine that the average piece count is 300pcs per pallet and the average wholesale value is say $2,000 per pallet.

The piece count is pretty clear cut - but in order for us to express an average Retail value, and then depending on the type of items (e.g. Electronics have a smaller Mark-up from wholesale to Retail and clothes have the largest Mark-up) we would "Mark-Up" the wholesale value as best and accurately as we can in order to express the average Retail Value of the pallet - in this case $2,000 wholesale value would be expressed say as between $3,000 to $4,000 Retail Value

Please note - this is not an exact science - and also assumes that each pallet in the load has more or less the same value and piece count - which is generally but not always the case

What Percentage of the products work ?

Depending on the Pallet, the type of products and on the department store this percentage varies a lot. For example, typically speaking - a clothes load has very little defective items. Most items would have just been retuned to the store and the store would just sell them in bulk very cheap as part of a "Returned" load because they do not wish to repack it, re-tag it, clean it if necessary etc. Underwear and socks loads are usually always brand new since most stores do not allow the return of socks and/or underwear from customers.

Also, some department stores have more elaborate Repair & Service Centers then others. Products from stores which have comprehensive Repair & Service centers tend to have a higher defective rate. Generally speaking electronic items have a higher defective rate - whilst non-electronic items such as toys, cookware, cutlery, accessories, domestics etc. tend to have much lower defective rates (e.g. a set of 50 pcs of cutlery set may be in a return load simply because one of the pcs has broken)

The generally recognized industry average used when trying to estimate working % is as follows: 65%-75% working, 20% Repairable, remainder scrap/spare parts/throwaway etc. Of course no individual load or pallet will have that exact breakdown, but generally speaking the latter percentages are fairly accurate to describe the average expected condition. Please note - exact working % of any particular pallet/load is unknown - and all items are always untested.

Is there a Risk in purchasing Department Store Returns ?

In the long term and looking at several purchases most people in this industry would agree that the payoffs and money returns are generally very good and that the long-term risk is generally minimal.

However when looking at any single purchase - YES - there is a definite risk in purchasing such types of items - and all items are sold AS-IS regardless of anyone's best intentions to advertise each load as accurately as possible. All persons contemplating purchasing such items must be aware and prepared of the risk. Like most businesses in life - the higher the risks - the Higher the potential returns.

Should everyone be purchasing Department Store Returns ?

No. Purchasing department store returns is not for everyone. This is not a 'get rich quick & easily' scheme. The payoffs are high for those prepared to work hard and put effort in their purchases in order to create the highest possible return on investment. This is a 'get-rich consistently with hard work & creativity scheme'. If you are not prepared to test items do not purchase. If you are not prepared to repair items - do not purchase. If you only want to deal with 100% retail ready items do not purchase. If you are not prepared to expect a percentage of items to be out of box, defective, cosmetically blemished etc. do not purchase.

If you are prepared to test, fix, clean, cannibalize, be creative in sales, open new sales channels in order to get the most revenue back when needed - then do purchase. Purchasing returns is not for everyone - and it generally involves more work and resources then purchasing brand new items. Please do not get this wrong - after all we do not want to discourage you - this is a profitable business for the large majority - and the industry as a whole is approximately $100 Billion in size.

Thousands of people on a daily basis buy and sell such items - many take it up part-time or full-time and profit very well from this. Bottom line is: if prepared to put in a fair share of work and effort - then this could be very profitable for you..

Who will arrange delivery ?

We are able to offer you very competitive shipping quotes to any destination nationwide.

Depending on the "load" which you purchase, there is sometimes the option to reduce shipping costs, and "break down" the pallet into 2,3,4 or 5 large cartons which we will then ship using UPS or UPS Hundred Weight. This can sometimes reduce shipping costs especially when shipping to a residential address - though only some of our pallets can be shipped in this way.

Though c2cwholesale will arrange shipping for you - all claims should be made directly with the carrier. We are not responsible for freight rates, lost, delayed or merchandise damage due to shipping. All shipping quotes are given with no insurance unless specifically requested by the customer.

You are also free to arrange your own delivery, or point us out to companies that you have worked with before and who you would like to arrange delivery for you.

A manned forklift is available to help load the pallets at no charge.

c2cwholesale will never be responsible for your taxes and duties. You should always check on the cost before ordering and having package shipped.

What Information do I need to provide in order to receive a shipping quote ?

Please provide us with the following information:

(i) Zip Code

(ii) Whether you have a business or residential delivery address

(iii) Whether you require a truck with a lift-gate (for lowering the pallets to the ground) - (NB: usually if purchasing one or two pallets, and if the products on the pallets are not too heavy, it is feasible not to request a truck with a lift-gate and to manually unload the pallet by hand

(iv) The number and type of pallets you would like to receive a shipping quote for

Please note: all shipping quotes sent out are only quotes, and are to be confirmed once order is placed.

How long before I receive my order is shipped and delivered?

Most orders, unless otherwise specified, are shipped within 24 to 48 hours of payment. Most orders will reach their destination within 1 to 5 working days of being picked up from our warehouse.

How can I Pay ?

Customers can pay via Check*, Money Order, Wire Transfer, Pay Pal** and major credit card***.

*Check must clear before we release the goods

**We only accept Paypal if you have a confirmed address which is the same as your delivery address.

***The first time you pay with a credit card you will need to Fax us a front and back copy of the credit card as well as a copy of ID. You will also have to fax us a signed Template Credit Card Authorization form as well as signed copy of the invoice which we will provide. We will only ship directly to the Credit Card holder.

Truckload orders and orders over a certain amount can not be paid using Pay Pal and/or Credit Cards.

Last Updated: 30 Aug 2008 08:39:13 PDT home  |  about  |  terms  |  contact
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