My first experience wholesaling Blog

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So it's been a while since I've been on the WF, but I'm branching out into new things and thought I'd share my experiences during the process and maybe I'll make a WSO if it turns out to be a profitable venture.

I'll update the first post as well so you don't have to read through everything.

Synopsis: In a nutshell, I'm going to buy a pallet of overstock/refurbished/returned items from a local wholesaler, Red Tag in Augusta, GA, and see what will come of it.

Day 1: I swung by the shop and talked to the owner who was quite friendly and very transparent about the process. He didn't care that I looked at all the materials and the manifest and told me that they just buy the truckloads straight from Amazon and Target and a bunch of other stores and gave me some advice in general on what sells and what doesn't.

Most of the items in the box were a mixture of the same kind of stuff, mostly cellphone cases, bed sheets, small electronics etc. Here's the list of one of them.


12280897 FENDI FRAME DARK RED 1027 615 F1027-615-52 52-17-140 1 130 32.5

12360564 MICROFIBER COVER CHAIR-SILVER BLACK 3 112.5 28.125

12675409 8-PIECE EMBELLISHED COMFORTER SET MARILYN LINEN Q 1 107.7 26.925

12560178 MLB 14 ART GLASS TABLE LAMP TIGERS 1 100 25

11833624 WEXLEY HOME FAUX SILK FOAMBACK BLACKOUT PANEL PAIR IVORY 38X84 5 93.75 23.4375

12626551 100 COTTON REVERSE 12PC TOWEL SET - CHOCOLATE LATTE 1 85 21.25

12690006 HOTEL GRAND 1000TC EGYPTIAN COTTON BLEND SOLID SHEETS WHITE F 1 82.48 20.62

12768385 GIANT COMIC BOOK BUNDLE 1 77.5 19.375

12667127 ADELAIDE 5-PIECE REVERSIBLE QUILT SET FULL QUEEN - BLUE 1 72.5 18.125

They're all marked down 75% of the retail price and a lot of them are only a few dollars cheaper on Amazon which means there is room for a profit.

My issues are shipping of course because I love Amazon's FBA program since I don't have to do shit when it comes to customer service, answering emails etc. I pay them a small fee and they do it for me. Shipping costs money though and the price to ship these out would easily be over $100-$200. That eats pretty much into all of my profit which means I have to do all the leg work if I want to make a profit.

His pallets ranged from $500 to $1500 so if I do get one it'll be in the $500 range to minimize losses if I can't make my money back.

There is also a fulfillment site that is two hours away south of Atlanta that I plan on calling in the morning to see if they have any pallets for sale. I figure it would be pretty easy to just do my cataloging in the parking lot and then hand it to them and save money on shipping. Not sure how that works to be honest.

I plan on doing some more snooping for items on the manifest and see how often they sell on ebay to get a feel whether it will be worth it or not.

Anyone else buy a pallet before?
#blog #experience #wholesaling
  • Profile picture of the author Sweetcheeks12354
    So I'm already going to terminate this blog because no matter how much I try to calculate the profits on this, it always comes to making a loss or making a profit after several months, both of which are not desirable.

    1. The items are not necessarily low quality, but there are already tons for sale on Amazon/eBay and even though it's still much cheaper than what it's listed (I pay $5 for the item and it does sell at the lowest for $20 on Amazon) the sales rank is so low that it wouldn't make a sale in months probably and that's assuming someone doesn't undercut me.

    2. The items are not listed on Amazon so I have to make my own listing which has 0 reviews, so no one is looking for it and don't trust it since there are no reviews. So having no traffic, no reviews means no one is going to touch it with a 10 foot pole.

    I will continue to keep looking for pallets, but a lot have the same items over and over again which leads me to believe that the pallet business (at least in Augusta) is meant for flea marketers or selling the dream rather than the actual business.
    {{ DiscussionBoard.errors[10058194].message }}
    • Profile picture of the author DWaters
      Originally Posted by Sweetcheeks12354 View Post

      So I'm already going to terminate this blog because no matter how much I try to calculate the profits on this, it always comes to making a loss or making a profit after several months, both of which are not desirable.

      1. The items are not necessarily low quality, but there are already tons for sale on Amazon/eBay and even though it's still much cheaper than what it's listed (I pay $5 for the item and it does sell at the lowest for $20 on Amazon) the sales rank is so low that it wouldn't make a sale in months probably and that's assuming someone doesn't undercut me.

      2. The items are not listed on Amazon so I have to make my own listing which has 0 reviews, so no one is looking for it and don't trust it since there are no reviews. So having no traffic, no reviews means no one is going to touch it with a 10 foot pole.

      I will continue to keep looking for pallets, but a lot have the same items over and over again which leads me to believe that the pallet business (at least in Augusta) is meant for flea marketers or selling the dream rather than the actual business.
      I have not done any sourcing using this method but i have a few comments that may help you. Remember that Amazon requires that items be in "consumer ready packaging". You have seen the inventory so you will know this. If the items are returens or refurbished they will not be able to be sold on Amazon as NEW.

      If you can buy for $5 and sell for $20 you will make money. I do not pay much attention to sales rank but I usually check camelcamelcamel to see the sales history. If there is a large quantity for sale on Amazon already it can matter if those seller are mercahnat fulfilled or FBA. In a sense an FBA seller is really only competing against other FBA seller so do not worry too much about the others. I generally price to be the lowest FBA seller and that often puts me in the buy box
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  • Profile picture of the author AadhyaMehra
    Banned
    Originally Posted by Sweetcheeks12354 View Post

    So it's been a while since I've been on the WF, but I'm branching out into new things and thought I'd share my experiences during the process and maybe I'll make a WSO if it turns out to be a profitable venture.

    I'll update the first post as well so you don't have to read through everything.

    Synopsis: In a nutshell, I'm going to buy a pallet of overstock/refurbished/returned items from a local wholesaler, Red Tag in Augusta, GA, and see what will come of it.

    Day 1: I swung by the shop and talked to the owner who was quite friendly and very transparent about the process. He didn't care that I looked at all the materials and the manifest and told me that they just buy the truckloads straight from Amazon and Target and a bunch of other stores and gave me some advice in general on what sells and what doesn't.

    Most of the items in the box were a mixture of the same kind of stuff, mostly cellphone cases, bed sheets, small electronics etc. Here's the list of one of them.


    12280897 FENDI FRAME DARK RED 1027 615 F1027-615-52 52-17-140 1 130 32.5

    12360564 MICROFIBER COVER CHAIR-SILVER BLACK 3 112.5 28.125

    12675409 8-PIECE EMBELLISHED COMFORTER SET MARILYN LINEN Q 1 107.7 26.925

    12560178 MLB 14 ART GLASS TABLE LAMP TIGERS 1 100 25

    11833624 WEXLEY HOME FAUX SILK FOAMBACK BLACKOUT PANEL PAIR IVORY 38X84 5 93.75 23.4375

    12626551 100 COTTON REVERSE 12PC TOWEL SET - CHOCOLATE LATTE 1 85 21.25

    12690006 HOTEL GRAND 1000TC EGYPTIAN COTTON BLEND SOLID SHEETS WHITE F 1 82.48 20.62

    12768385 GIANT COMIC BOOK BUNDLE 1 77.5 19.375

    12667127 ADELAIDE 5-PIECE REVERSIBLE QUILT SET FULL QUEEN - BLUE 1 72.5 18.125

    They're all marked down 75% of the retail price and a lot of them are only a few dollars cheaper on Amazon which means there is room for a profit.

    My issues are shipping of course because I love Amazon's FBA program since I don't have to do shit when it comes to customer service, answering emails etc. I pay them a small fee and they do it for me. Shipping costs money though and the price to ship these out would easily be over $100-$200. That eats pretty much into all of my profit which means I have to do all the leg work if I want to make a profit.

    His pallets ranged from $500 to $1500 so if I do get one it'll be in the $500 range to minimize losses if I can't make my money back.

    There is also a fulfillment site that is two hours away south of Atlanta that I plan on calling in the morning to see if they have any pallets for sale. I figure it would be pretty easy to just do my cataloging in the parking lot and then hand it to them and save money on shipping. Not sure how that works to be honest.

    I plan on doing some more snooping for items on the manifest and see how often they sell on ebay to get a feel whether it will be worth it or not.

    Anyone else buy a pallet before?
    No. Actually I never used Amazon's FBA program for selling my products. I do it with my own sources.
    {{ DiscussionBoard.errors[10059816].message }}

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