5 Tips for Choosing the Best Liquidation Pallets for Sale

Of all the challenges today’s retailers face, handling excess inventory is one of the most significant. In many instances, the surplus comes when products don’t sell as expected—but returns are another source of extra stock. By buying these returns from liquidators, entrepreneurs can resell them for a tidy profit. Making money from liquidation pallets for sale, however, takes planning.

From finding reliable distributors and choosing the right products to platform selection and pricing items competitively, there are several steps to take. Here, business owners will learn about liquidation pallets for sale and how to choose them.

What Are Liquidations?

Customers’ preferences are always changing, and retailers sometimes end up with items that have been returned for improper fit, unmet expectations, and buyer’s remorse. While it’s okay for a customer to change their mind, it’s costly for retailers, as returns take up space that could be used to sell new stock. Customer returns and leftover inventory from closing businesses is known as liquidation stock. Thanks to pallet sales, it’s easy for business owners to find inventory for fast and profitable resale.

Make the Right Considerations

One of the most important things for resellers to remember is to pick their pallets carefully. To do so, they’ll need to consider factors such as:

• Familiarity with the product category
• Seasonality
• Product popularity by geographical area
• Ease of shipping

Whether it’s tools, toys, kitchen goods or electronics, sellers should choose items they know well. By reflecting on these factors, buyers are more likely to find pallets full of resalable items.

Learn About the Cost of Doing Business

Sellers should factor in the costs of transportation, processing, and storage. After all, it doesn’t make much sense to buy a load only to be unable to have it delivered or processed in a timely fashion. As in other areas of business, delays eat into a reseller’s profits.

When buying liquidation lots, remember that not everythingwill be a great buy. In the case of manifest pallets, where a load’s contents are listed, check the prices of individual items before placing a bid or making a purchase. 

Start Slow, Keep it Organized, and Consider Bundling Items

It’s common for new sellers to buy more inventory than they can handle. No matter how much money an owner has, overbuying quickly leads to storage and financial problems. As a reseller, it’s best to start small. Buy a pallet or two and see how long it takes to process and move the items, and if things go well with the supplier, buy several more. A measured approach will help owners see what sells best, and it will also keep them from getting all their capital tied up.

Pick the Right Selling Platform

Liquidation resellers with wide customer bases tend to be more successful. Sites like Mercari and eBay reach millions of potential buyers every day, and they’re perfect for sellers who specialize in lightweight, small, and easy to ship items. By choosing the right marketing platform and honestly assessing items’ condition, the chances of successful sales increase.

Bonus Tip #1: Know What to Look For

Before purchasing liquidation pallets, it’s best to have a list of items in mind. Take the time to decide which products will sell and determine if they’re budget-friendly. With a bit of basic research, sellers can find what they’re looking for without spending too much money.

Bonus Tip #2: Be Honest With Customers

As most business owners know, long-lasting relationships are built on honesty and trust. When customers are happy, they’ll tell their friends and family, and over 90% of consumers trust those recommendations. Even when they knowthey’re getting liquidation items, buyers are much more likely to come back to sellers who are easy to deal with and send products on time, as advertised.

Bonus Tip #3: Become Tax Exempt

Those who buy liquidation pallets strictly for resale can typically avoid paying sales taxes by getting an exemption. While rules and procedures vary by location, resale exemption certificates allow entrepreneurs to save money, calculate profit margins more effectively, and set more reasonable sale prices.

Making Money With Liquidation Pallets: Yes, It’s Possible!

During the last couple of years, people have taken almost all their shopping online. While bigger retailers like Amazon and Walmart typically have an edge over smaller businesses, individuals can still profit from the purchase of liquidation pallets.

As with other business opportunities, the profit to be made from buying and reselling liquidation items depends on the level of effort put forth. To increase the chances of success and generate more revenue, sellers should employ strategies such as those mentioned above. From choosing and organizing products carefully to selling them on the right platforms, there are many ways to profit from liquidated inventory. 

If you want to start making money from liquidation pallets, contact us at Pennies for Gold today!