Reselling in today’s world means finding new ways to obtain inventory. And if you’re selling clothing, having a source of retail arbitrage to buy is an excellent way to expand your quality of inventory you provide to customers. (Read my post on Retail Arbitrage vs. Thrifting here).
Knowing the “tricks of the trade” is also very important and something that all resellers need to take time to understand. Lucky for you, I am going to share a major trick you should know below, so keep reading!
T.J. Maxx (and all other TJX stores) Yellow Tag Clearance: Everything You Need to Know as a Reseller in 2021
Why is it so important? This markdown event only happens two times a year, at the end of the summer season, and again at the end of the winter season.
This markdown event is perfect for resellers because of the ability to find NWT and designer items at a fraction of the cost, so that profits are made at the maximum amount! (You make the best/highest profit).
Although it may seem silly to buy out-of-season items, there is no reason not to buy all seasons, all year round! Yes, these items may sit in your shop(s) for a number of weeks, but the perfect buyer could come looking for a swimsuit for a winter vacation! (Yes, this has really happened!).
Here’s a list of everything you should look out for when shopping yellow tag:
- Check to make sure the item’s tag matches the manufacturer tag inside the clothing. Sometimes the item’s tag can be switched or removed and then another false tag is put in its place, make sure you are picking up the item with the brand that is on the inner tag of the clothing item, to avoid this confusion/frustration/deception.
- The price may not be the lowest that the item will go. Although yellow tags are generally the deepest discount, check to see if there are multiple yellow tags stacked onto each other to insure you are in-fact getting the lowest price.
OR…
- Make sure you stick to a “code” or “budget” for each item. What I mean, is to have a price per each tag that you are not willing to go over. For example, my budget is typically $10, meaning I do not purchase items that are marked $11 or more. Shopping with this mindset will keep you from overspending as well as make you double-check that each item is in good-enough condition to spend your money on it.
- Check each item’s condition before purchasing. As stated before with shopping RA (retail arbitrage), there is a greater chance of shopping NWT (New with tag) items versus thrifting, but make sure that each item you pick does not have any flaws. A broken or torn item could have found its way back out into the public eye, don’t make the mistake of taking it home when you have no intention of fixing it! It would be a waste of time, and money.
- While checking item condition, check each item’s COMPS too! Comps, or comparable company analysis is a fancy term for “competitor prices”. So, make sure to check for what an item is selling at by searching it online! Here’s two great tools that many resellers use to help make this process quicker:
Sellhound: A free app that searches and compares prices all over the internet. Check it out here.
Google Lens: Another free app from Google that allows you to snap a photo of an item, and it will search all corners of the internet for prices and stock photos. Check it out here.
- Try multiple TJX stores! Not every store has the same items to offer. If you have a T.J. Maxx and HomeGoods in your city, make sure to check them both out! Have two Marshall’s within a two-hour drive? Go check them both out! Never know what you will find at each and every store.
- Not every item is over-stock! What I mean is that some items were curated for purchase at TJX stores! Check the inner tag for the TJX logo.
- Not every brand is manufactured the same if it’s in a TJX store. For example, if you normally shop brands that are “Made in USA”, make sure to check their manufacturing information, because they might have been outsourced if they are in these TJX stores.
And finally:
- Make sure to pick up items that you want to sell. This business is curated by you! So, don’t make yourself buy and resell items you don’t like just because they’re on sale. Find items you are excited about listing when you get home, and it’ll make the hard work easier!
One final tip:
Follow other resellers online for information and notifications of when these big events are happening!
We are all allies in finding the best deals and easiest tricks, so don’t be shy! Follow members of your community to learn and grow!
I was inspired to make this blog post by the fellow resellers on Instagram, who gave some great information along with notifying everyone that the sale had begun this past season! Here’s their Insta-handles: @shopresalem and @north.coast.style
And just in-general, joining the reseller community through social media can help you grow your business along with giving you a place to vent your frustrations on reselling and share some motivation with others! I would not be where I am today without this community, for which I am eternally thankful.
Got any other tips on the the TJX yellow tag event? Comment below so we can all learn and grow together!
