Closeouts offer resellers high profit margins along with high volume sales, when done right.

Resellers, whether flea market vendors, eBay sellers, or dollar stores, will be faced with competition from online and offline retailers who can buy wholesale closeouts at a lower price.

To outmaneuver this competition in the wholesale closeouts business, resellers need to have a strategic plan in place.

Part one of their plan deals with finding the best sources for wholesale closeouts at the lowest possible prices.

For this reason I would recommend resellers to stay away from drop shippers when looking for wholesale closeouts.

Since the drop shipper is set up to offer his products to thousands of other resellers, you will not be able to compete based on price. All the resellers are paying the same price to the wholesale closeouts drop shipper, so how can your prices be lower?

When looking to buy wholesale closeouts you want to get as close to the source as possible.

Since you will not be able to buy brand name wholesale closeouts for a lower price than major retailers can, you will want to look for lesser known wholesale closeouts sellers.

For instance, ABC Closeouts might not have the name recognition that Overstock enjoys, but you can show customers that the quality is the same, and as long as your prices are lower some customers should buy the wholesale closeouts manufactured by ABC Closeouts.

When you contact these companies looking for wholesale closeouts ask them for their overstock, overrun, and closeout deals. You would be surprised at the wholesale closeouts deals you can find from small manufacturers that are looking to move merchandise out.

You can find great wholesale closeouts deals but it will take some solid leg work.

Donny Lowy is the CEO of http://www.closeoutexplosion.com, an online wholesale and closeout business, and http://www.wholesalecloseoutforum.com, an educational site for the wholesale and closeout business.