What Is A Liquidation Pallet
A liquidation pallet is a group of products that a retailer will sell at a steep discount because they cannot sell the product anymore. The types of products in a pallet can include:
- Products that were purchased by a customer and then returned for one reason or another
- Products that just werent selling
- Products that were damaged in their warehouse or during shipping to the point that they cant sell it to a customer
Theyll package these items together into a pallet and sell that pallet at a steep discount to get the product off their hands.
Wholesale Inventory For Any Sales Channel
Direct Liquidation is your #1 source for liquidations, closeouts, retail returns and refurbished inventory. In the past, large retailers and manufacturers simply didnt have the proper channels to offload their unsold and returned merchandise.
Today, this inventory is packaged into wholesale lots on marketplaces like DirectLiquidation.com and sold off to the highest bidder who then resells the merchandise for a profit via their own sales channels.
No matter what channel you use to sell from we have high quality merchandise available below wholesale prices that you can turn into profits for your business.
Conduct Detailed Research First
Go to online retailers to find out what their top-selling items are. You should also take advantage of social media to see which hashtags and topics are trending the highest. That way you will know which products are on customers minds and therefore, which products have the best chance of selling.
Conversely, you want to avoid products that have a low chance of being sold. You do this by finding out which products seem to be nailed to the shelves of retailers and which no one seems to be talking about. If a product seems to be oversaturated to the point where you can find it clogging up storefronts, then you should avoid that product as well. It is unlikely you will have more luck selling it even at a discounted price.
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Pros And Cons Of Buying Amazon Return Pallets
Heres a recap of the pros and cons of buying Amazon return pallets:
Pros of Buying Amazon Return Pallets
- You can use any Amazon Profit Calculator to evaluate if its worth it to sell certain products.
- You dont need much storage.
- It doesnt require a big investment.
- You dont need technical skills, so it is a good way to start an ecommerce business.
- Cut out the middleman and maximize your profits.
Cons of Buying Amazon Return Pallets
- Some online liquidation companies wont give you any description of what kind of products are inside the Amazon return pallets.
- You cannot grow or scale with this business model.
- Often, youll collect used items that you arent able to resell.
What Can You Expect From An Amazon Return Pallet
Return pallets are usually sold in bulk with a large variety of different products, such as clothing, electronics, beauty products, and so on.
Heres an Amazon return pallet auction from Liquidation.com:
So for the example above specifically, you get 84 items with a suggested retail price of $2,168, and right now the top bid is $240.
Usually, there are a couple of photos that oftentimes arent really helpful, so you dont get a view of the whole pallet. But on some liquidation websites, you can see everything the pallet includes because they provide buyers with a manifest, where they list every item thats in there.
The caveat is the items may be in bad condition. Some items will be ready for resale immediately, others might require some repair, and some can only be sold for parts.
Occasionally, you can also see on the manifest that even though each bundle is categorized, there are still some random items in each pallet.
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Is It Worth The Risk To Buy These Pallets
There are many reasons why buying goods in bulk makes senseit’s cheaper, and it’s faster. You manage to stock up on inventory in one fell swoop and maintain a large profit margin. But does the same apply if you’re not aiming to fill shelves?
If you’re someone who’s not looking to fill a store, is it worth turning to liquidation, wholesale, and return pallets? Well, yes. You don’t have to get the biggest pallet available or the most expensive one, of course, but if you can afford to get one and have the space required to sort it out, why not give in to curiosity and check it out?
If YouTubers are to be believed, that’s a fun experience that can uncover plenty of gems in the process. It was a trend for some time for creators to get return pallets and see how much money the items rack up and whether everything works. Why not join the trend?
What Are Return Pallets
Returned pallets allow people to get their hands on a pallet of goods, with the caveat that you don’t know why the items got sent back in the first place. They could be damaged beyond repair or perfectly fine, and you’ll only know for sure once you unpack and try them for yourself. You could save a fortune and enjoy an awesome bargain, or live to regret the purchase.
If the air of mystery and prospect of a good deal appeal to you, let’s look at some of the best places to help your curiosity.
Liquidation.com lets you buy consumer product goods and commercial surplus inventory. It offers various deals on items from Amazon and other companies, and you can buy by the box, pallet, or truckload. The sale is typically made via auction, so you bid on what you want, and the highest bid gets it.
You can find pallets with goods under categories like apparel, electronics, houseware, and much more. Naturally, that doesn’t mean every item you get will match the primary category.
For example, if you buy an electronics pallet, some houseware and apparel items might end up with you, too, and vice versa. That tends to apply to every place that deals with selling off pallets.
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What Happens To Amazon Returns
Amazon has become an undeniable leader in the e-commerce space.
In 2021, the e-commerce giant reported over $469.8 billion in net sales on its digital marketplace, a number 22% higher than the previous year.
But, there is a downside to this growth.
Theres also been a massive increase in product returns that have contributed to seller loss and solid waste problems.
The average return rate on online items increased to 16.6% in 2021 from just 10.6% the year before.
The CEO of returns solutions provider Optoro once said:
From all those returns, theres now nearly 6 billion pounds of landfill waste generated a year and 16 million metric tons of carbon dioxide emissions as well. Thats the equivalent of the waste produced by 3.3 million Americans in a year.
Returns continue to pose a big problem, especially during the holiday season. Amazon partnered with various entities to deal with this rising problem.
Amazon has several options for dealing with returned items:
Amazon Accelerate 2021 Highlights:
- Last year, Amazon invested more than $18 billion in logistics, tools, services, programs, and teams to help sellers get started, build their brands, and leverage Amazons scale to reach more customers.
- Product Opportunity Explorer is a new tool that will help sellers to identify new products to sell on Amazon.
- Sellers will have access to a new dashboard, the Search Analytics Dashboard, that will provide the data to understand customers interests.
- In 2021, they updated some of their tools by including these new features: Amazon Brand Referral Bonus, Amazon Customer Engagement, A+ Story Cards and Customer Review Resolution.
- Amazon introduces sellers to a new program called Local Selling on Amazon.
- Sellers will have access to 4 new products and services: and Customer Service by Amazon .
- Access to new features, A to Z guarantee expansion and Seller Central Partner Network.
- Amazon launches two new features aimed at helping sellers maintain good account health: Account Health Support Team and Account Health Assurance.
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Connect With Your Customers
You want to be open and available to your customers, not just in person, but online as well. The internet gives you a lot of different ways to stay in contact with your clientele. Social media platforms like Twitter and Instagram allow you to keep your customers apprised of any deals or bonuses you are offering. It also lets you announce the arrival of any new merchandise you may have recently received.
Of course, this type of communication is a two-way street, so you should be mindful of any feedback your customers leave, both good and bad. Reading negative feedback may not be pleasant, but in some cases, it can help you to identify and fix a problem you may not have noticed.
When you do get positive reviews, make sure to take the time to thank the customer for leaving you some positive feedback. People are more loyal when they know that they are appreciated. So, take advantage of what the internet has to offer you by making your business more accessible.
Any item that has ever been sold in a department store, home improvement store, big-box retailer, superstore, or online emporium is available for purchase at a merchandise liquidator. That is why the pallets of merchandise liquidators will have any kind of stock that you can ever think of. Here are the products that you can get from us at heavily discounted prices:
Amazon Is Aware Of How Restock Limits Are Impacting Sellers
John Felton, Vice President of Global Delivery Services of Amazon, highlights one of the biggest problems third-party sellers have faced this year: Restock Limits.
Yes, the biggest issue for all ecommerce entrepreneurs this year has been logistics issues. In April 2021, sellers were blindsided by the announcement that restock limits are now calculated at the account level and by storage type. And lets not mention that ocean freight rates are 100% higher than last year.
Amazon addresses the issue without actually reaching any solution.
However, theyve boasted of having made a huge investment in many other areas of FBA, providing 350 new facilities and hiring 450,000 new employees.
Their future goal? Get rid of these limits.
So far, they announced the launch of two new programs that will help sellers to:
- Recover value on overstock and customer returns
- Avoid monthly and long term storage fees
- Improve your Inventory
FBA Liquidations Program
- Overstock and returns that cant be sold as new
- Amazon handles the entire process
- Receive the payment in 60 days
FBA Grade and Resell Program
- Customer returns that cant be sold as new
- Sell on Amazon as used
- Amazon handles the processing, grading and listing
- You set the price and get paid when it sells
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How To Locate A Pallet
Locating pallets for sale simply requires looking in the right place.
Many liquidation warehouses now sell pallets on their websites and advertise their goods on platforms like Facebook Marketplace.
Finding a local liquidation warehouse can save you money on transportation costs, as some will ship for free or at a reduced price due to proximity.
It also allows you to pop in more often to snag a good pallet and get a peek of your pallet before making a purchase.
You can click on the buttons below to do a quick Google search for your area.
Buy Recycled Wood Pallets
Recycled pallets are a more cost-effective & environmentally friendly option compared to new pallets. Our recycled pallets fall into two categories: reconditioned or remanufactured.
We extend the same amount of quality of care and materials in our used pallets as we do with all products.
Recycled Pallets Facts
- Used pallets can cost up to 30% less than new
- Standardized repair process for reconditioned pallets
- Standardized dismantling and manufacturing process for remanufactured pallets
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Use Several Platforms For Selling
The only way to make pallet flipping a successful side hustle is if you actually sell the items for profit. If you cant sell the items, then youre left with things that you probably dont want.
Its important to make your potential buyer pool as large as possible to increase your chances of selling the items, especially if you want them off your hands sooner rather than later.
The three places I suggest listing your items are:
Ebay
One of the largest seller and buyer marketplaces in the world is eBay. The benefit of eBay is that anyone can open a shop and sell anything, as long as youre honest about the condition of the product. If you have items that are easy to ship, small, and lightweight, then eBay might be a great place to list some of your items.
Facebook Marketplace
You may have seen that Facebook Marketplace now offers shipping. Many sellers prefer other platforms, like eBay, to ship their items because there is more buyer and seller protection. However, shipping through Facebook is an option if that is the route you want to take.
Mercari
Although I have no personal experience with Mercari, Ive heard many people that have had success with selling items on Mercari. Its a marketplace app, similar to eBay, that you can sell and ship your items. This marketplace seems to work better in the clothing and textiles niche, so if you get a pallet of those items, this could be a good primary sales channel for you.
Wholesaling Vs Amazon Arbitrage
The biggest difference between the two is the product source. Wholesalers deal directly with suppliers so they can buy in bulk. Arbitrage resellers, on the other hand, source their products from retailers and generally buy less compared to wholesalers.
Arbitrage resellers thrive on discounts from clearance sales, and wholesalers rely on discounts because of the number of products they buy and their negotiating skills.
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Learn The Art Of Asking For Free Pallets
Always, always ask in a friendly manner! For a business first thing in the morning or late in the day are some of the best times to stop in and ask. Why? Those times tend to be the slower periods and the owners are much more likely to take the time to talk to you. And when you ask be sure to share your plans with them . Trust me when people find out that you want to build a coffee table, a garden bench, a chicken coop or a playhouse for your kids they are much more likely to be cooperative and help you.
How To Choose A Liquidation Pallet
There are tons of other types of pallets that you may see in a liquidation warehouse when you are shopping for liquidation pallets, but these are the most common types that are sold by the individual pallet. Next, we will discuss the four factors that you should consider when choosing a pallet.
Size
Sales Channel
Another large consideration for a reseller is how and where you are going to sell your merchandise. This decision should be made before you go shopping for a pallet because it will determine which pallets you should be looking at. If your focus is e-commerce like Amazon, eBay, Walmart.com, or Facebook Commerce you may want to look for pallets that have new products with a lot of the same item. This will save you time when listing because you don’t have to list each item separately. If your focus is going to be on local internet sales such as Facebook and Craigslist then you may want to find medium or larger items so that when you are meeting with people to make a sale the value of the product is high enough to be worth the time that you invest in meeting each person. If you plan on selling through face-to-face sales such as at a retail store, a flea market, a swap meet, or events then you may want to look for items that fit your brand and work well for impulse purchases. Auctions houses usually do well with medium to larger items and they tend to focus more on higher value items with a lower piece count.
Damage Rates
Experience
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How To Make Money Pallet Flipping
Have you heard about pallet flipping and wonder what its all about?
Pallet flipping refers to buyers purchasing pallets from distributors or liquidation centers and then flipping the individual components for cash.
But can you make money with a pallet flipping business?
Yes, you can! Its not uncommon to find a pallet with hundreds of dollars worth of products for a fraction of the retail cost.
While flipping pallets can be a side hustle, many have turned this gig into a full-time income.
So how can we go about flipping pallets in the most cost-efficient and practical way?
Lets find out!
How To Choose The Right Products
This is perhaps the most crucial part of the process. When you are selling through Amazon arbitrage, there are a couple of factors to consider and some apps that will help you make the right decision.
Use a seller app. Unless you want to buy a cartload of things you cannot sell or at least not for a profit, you need to use seller apps to check if its wise to invest on a certain product.
The most popular tool for doing product research is . will show you how much of any product on Amazon is selling per day. So for example, this Scan Disk Memory Card being sold on Amazon is selling approximately $53,050 worth of product a month.
The Amazon Seller App also allows you to scan a products barcode to quickly find the sales rank and also how much it’s being sold for, which is very useful when you’re out doing retail arbitrage hunts at a local retailer.
When you’re looking for products, make sure the product is not restricted. Heres something you need to understand before going into Amazon arbitrage: Not all products are eligible for resale.
Some brands dont allow specific products to be resold. Amazon also has a list of restricted products you cant sell . You can easily check this in the Amazon Seller app and other similar apps. So it doesnt matter if you can earn $60 a pop for that item. If you cant resell it, its not gonna be worth anything for you.
You can play around with products that have an expiration date, but do that at your own risk.
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