Purchasing through our Brokered Pallet (DEPT STORE DIRECT) option is a great option for brokers, wholesalers, distributors, and larger retailers because it offers the lowest cost per unit on department store closeouts. We can broker shipments to you or your client directly from the department store reclamation centers. This is how we purchase from the department stores. Purchasing brokered pallets is not for everyone --- keep in mind that you will need to be able to purchase in larger volumes and have tolerance for product and seasonal variance, among other things. Here are a few things that you should consider when considering the Brokered Pallet Option:
First Quality Minimums: Minimum purchases have recently been lowered! While many offerings are still available as multiple pallet loads, there are now more opportunities to buy as little as just one pallet! Minimums can range from 1 pallet to a trailer load, depending on inventory at any given time. Although dollar amounts may vary depending on item type and piece count, you can estimate that most pallets will be in the $1000-$4000 range.
Store Returns Minimums: The minimum for Store Returns is often just one pallet. Please keep in mind that the damage percentage will be higher than First Quality pallets.
Choose by Category: When purchasing First Quality or Returns lots, you may be able to choose from a variety of options. Several examples are as follows: Women's Better Brands (higher end designers) / Women's Budget Brands (private label and moderate label designers) / Dresses, Suits & Coats / Swimwear / Intimates / Outerwear / Men's Apparel / Children's Apparel & Accessories / Domestics / Hosiery/ Tabletop & Giftware / Luggage and many more!
Choose by Shipping Location: California, Illinois, Connecticut, Florida, Maryland, Ohio, New Jersey and Texas. Please contact our Sales Department for additional BOL's from these locations if not listed on the spreadsheet.
Seasonality Is Not Guaranteed: You must be able to receive merchandise for any season. Although the department stores can usually indicate the primary seasonality of the merchandise being shipped, there are no guarantees regarding the percentage of seasonal merchandise. You will almost always receive merchandise for mixed seasons in each Brokered shipment. (When using the Guaranteed Pallet option, you may specify the seasonality that you wish to receive.)
Apparel Lots --- Accessories Included: You must be able to receive Accessories when purchasing apparel lots. You will receive accessories in both the Men's and Children's categories. Men's accessories may include, but are not limited to, underwear, socks, ties, hats, and more. Children's accessories may include, but are not limited to, underwear, socks, stuffed animals, belts, hats, jewelry, toys, and more. Women's accessories may be purchased separately if desired.
Damages: Although you can elect to receive First Quality items, you can still expect to receive some damaged merchandise. The percentage of damages is unknown and cannot be guaranteed on Brokered lots. We suggest that you allow for at least 15% damages, but keep in mind that they could be higher.
Piece Count: Piece counts are not guaranteed. The department stores' Salvage Liquidation policy is that All Sales are Final; no refunds or adjustments will be given. It is possible that you may receive incorrect items or experience a shortage. We do not often receive incorrect items, but we do typically experience shortages. Please expect that there will be a variance in the number of items that you receive vs. the number that you ordered. A 3-5% shortage is very typical. Please factor potential shortages and damages into your per unit cost when determining your true cost per unit when purchasing brokered lots.
Duplicates: Most lots do generally have a nice assortment of item types and brands, but please be aware that the possibility for receiving large quantities of identical items does exist.
If the above criteria meet your needs, then purchasing through the Brokered Pallet program may be a great option for you to purchase in greater volumes and reduce costs. This is the way that we purchase from the department stores, and it works very well with our business model. Depending on your company size, budget, and level of tolerance for some of the above mentioned criteria (seasonality, duplication, damages, item types, etc), this method of purchasing may work well for you too.
If your warehouse and budget do not allow for some of the above variances, then please consider purchasing either smaller lots or pallets directly from Fab-Look Closeouts. Our price per piece will be higher, but we do offer smaller lots, more guarantees (piece count, no damages) and greater levels of customization (seasonality, size range, item types).
Please call or e-mail us for further information on purchasing brokered pallets. We can provide updated spreadsheets on lots that are currently available. We can also work with you to determine whether the brokered option is the best option to meet your needs. You can reach us Toll Free at 866-795-7990 or via e-mail at sales@fab-look.com
