I’ve got another question to answer, but I’m sorry to say my audio answer below clearly mispronounces the readers name. I said Angela, when her name is actually Angelia – So, Angelia I’m sorry. OK…I feel better now. Let’s get right to her question:

Hello, I would like to start selling jewelry liquidations from high end department stores. I would like to setup a website and sell department store jewelry from my website. I purchased your book and you indicated that there are some rules and regulations that you have to follow to sell products from major department stores. Is it possible to create a business website and sell the products without advertising their brand names or are there other restrictions as well? In my advertisement I would indicate that I have name brand jewelry for less and then on the website I would show pictures with a description? Would the department stores have an issue with this website? Thank you for your help, Angelia

It’s always scary when you first read a liquidation merchandise resell and brand protection agreement. Every department store has their own agreement that you must sign before they will let you buy department store salvage, i.e. customer returns, shelf pulls, and overstock. There is a lot of legal jargon and specific terms a buyer must adhere to. Every agreement if different but the most common forbid the following actions:

  • No reselling within a fifty mile radius of origin store. Holly cow, that’s serious business! If you buy a load of Sears or Kmart you cannot sell the merchandise within a 50 mile radius of Sears or Kmart store.

  • No advertising where the liquidation merchandise originated from. This is easily understandable- big chain stores do not want an end user buying customer returns from you or I, only to try and return the item(s) back to the store for a second time.

  • All marks, brands, and nomenclature (huh? What the heck is that?) must be removed from salvage items. This is easily done; remove all price tags, tickets, warranties and anything showing the stores brand name. You know what I mean, all department stores have their own store-specific brands, i.e. Kenmore, Craftsman, Charter Club, etc. In each resell agreement they [department store] should list store exclusive brands; get familiar with the brands and make sure to remove any reference to the brand when reselling.

My answer to Angelia’s Question:

 

Our 2017 Liquidators Guide chronicles 12 years of wholesale product sourcing experience and includes my personal black book of direct source contacts! As an industry expert, I'll share the success I've enjoyed along with the mistakes I've made buying and reselling liquidation merchandise.

If you are thinking about buying pallets of liquidation merchandise from a liquidator, broker, or direct from department stores, you need to check out The Liquidators Guide