Buying Liquidation Pallets in Indianapolis: The Definitive Guide

Buying liquidation pallets to resell can be an inexpensive way to start a business. Our guide to buying liquidation pallets in Indianapolis will explain what liquidation pallets are and where you can buy them. It will also give you helpful information about the market for liquidation merchandise in the city and the wider region.

Why Start a Business in Indianapolis: The Numbers

• Indiana’s early startup survival rate is 80.39%, which is the 11th highest in the country.
• Indianapolis came in at No. 24 of the best cities to start a new business in 2019, according to Business First, with 82.6% of businesses at least breaking even and only 2% of businesses closing due to finances.
• Indiana’s 11th ranked corporate tax rate, 15th lowest income tax rate, and 2nd lowest property tax rate spurned the Tax Foundation to place it in the top 10 states with business-friendly tax climates.
• Indiana’s early startup survival rate is 80.39%, which is the 11th highest in the country.
• 508,924 small businesses operate in Indiana, accounting for 99.4% of the state’s total businesses.
• In 2016, the median income for self-employed owners of their own businesses in Indiana was $45,276.

The Market for Discount Merchandise in Indianapolis

Indianapolis is a huge state commercial hub, with a large population. On top of this, large segments of the population are low-earners, and this is a natural market for discount merchandise.

The Indianapolis-Carmel-Anderson metropolitan area had a total population of 2,050,933 in 2020. This is more than one-third of the entire population of the state. 11.6% of this population lives below the poverty line. That equates to approximately 238,000 people. This is close to the average poverty level of 11.9% across Indiana. The city of Indianapolis itself has an even higher poverty rate, at 15.8% in 2019. This represents huge numbers of potential customers looking for discounted merchandise.

However, the poverty rate is much higher in many of the city’s neighborhoods. One-fifth of the region’s residents live in low-income neighborhoods—census tracts with poverty rates of 20 to 39 percent. 80,000 residents live in areas of concentrated poverty, with poverty rates of at least 40 percent. The highest levels of poverty can be found in interstate neighborhoods on the east and west side of Indianapolis.

The demographics aren’t the only draw point for a potential discount business selling liquidation merchandise in Indianapolis.

In close-knit communities, customers seek out smaller local businesses to support. 91% of the time, consumers will choose small businesses when convenient, and 74% look for ways to support small businesses even if it’s not convenient. Once you combine this with fewer small businesses being created across the area, your startup discount retail business selling liquidation merchandise will be in a stronger position than if it was created in other major US cities.

When starting a liquidation business, you do not need a huge amount of capital to get started. Full pallets of merchandise can be bought for as little as $250. When you are first starting out you can store the merchandise in your home or garage. If you are looking for a higher initial investment, such as setting up a retail store, renting more storage space, or starting with higher-volume orders, then there is potential funding available in Indianapolis through Angel Investors.

Source: City-Data, 2022.

An angel investor is a wealthy individual who invests their personal finances in a startup, typically in the beginning stages, and Indianapolis has a network of large numbers of these individuals looking to help new businesses get started in the area:

• Central Indiana Community Foundation – A group of angel investors whose mission it is to sponsor initiatives with the potential to have a positive impact on the community at large.
• Elevate Ventures – The largest investor network in Indiana.
• Indiana Angel Network – An angel organization with over 200 members and an extensive history of helping managers increase the revenue of their companies.
• XCap Angels – A new Indiana angel group with 10 companies in its portfolio.

Compared to other American cities, the city is also inexpensive to live and do business in. The city ranks 12th nationally for most affordable housing costs, closing costs, and property taxes in a survey of more than 150 U.S. cities. Taxes overall are 12.47% lower than the national average.

When looking to start up a new business, especially with a limited startup cost, you can do much worse than buying liquidation pallets to resell in Indianapolis.

As you can see, Indianapolis is a great place to set up a discount goods business. But what are liquidation pallets, how can they help a discount sales business, and where can you stock up on this merchandise?

What Can You Expect from Liquidation Pallets?

Liquidation merchandise can be described using the following broad categories:

Customer Returns

Customer returns are products bought by a customer, either in-store or online and subsequently returned. This could be for various reasons, such as buyer’s remorse or the item not working. When a product is returned, if it can not be put back on the shelves (or relisted online), the retailer is left with little choice but to liquidate it. Typically this inventory requires the buyer to invest time and labor to make it saleable. This extra effort translates into a lower acquisition cost making it perfect inventory to acquire for a discount retail business.

Overstock

Overstock is brand-new stock that has never been sold to customers, often due to seasonality or version upgrades. These are also known as ‘store stock’ liquidations.

Shelf Pulls

Shelf pulls are products that have been taken off store shelves to make room for new merchandise. Shelf pulls consist of seasonal items, older versions, or end-of-life items as with overstock. Some liquidators call these ‘jobouts.’

Closeouts

Closeouts are items taken from stores that have closed, moved, or are being renovated. This merchandise is brand-new.

Source: Chamber of Commerce, 2022.

Where to Buy Liquidation Pallets Near Indianapolis

Direct Liquidation – Greenfield

6719 W 350 N, Greenfield, IN 46140

Direct Liquidation – Whitestown

5102 E 500 S, Whitestown, IN 46075

Barton’s Discounts

2222 Hillside Ave, Indianapolis, IN 46218

Family Liquidators

4701 Rockville Rd suite b, Indianapolis, IN 46222

Circle City Bargains

5208 Commerce Square Dr. Suite B, Indianapolis, IN 46237

Bulldog Liquidators Downtown

2201 N Meridian St, Indianapolis, IN 46208

RMW Liquidations LLC.

545 Christy Dr, Greenwood, IN 46143

Commercial Liquidators – Indianapolis Auctions

301 S Lasalle St, Indianapolis, IN 46201

Bulldog Liquidators Westside

5402 W 38th St, Indianapolis, IN 46254

J&M Wholesale Pallet Liquidation

190 Old Farm Rd, Danville, IN 46122

Ellis Wholesale LLC

545 Christy Dr, Greenwood, IN 46143

Fort Wayne Pallet liquidation

5210 W Washington Center Rd, Fort Wayne, IN 46818

American Pallet Liquidators, Inc.

252 America Pl, Jeffersonville, IN 471300

BBR IMPORTS Pallet Liquidation

1015 W Wiley Ave, Bluffton, IN 46714

Source: Business First, 2019.

Top Flea Markets and Swap Meets in Indianapolis

Flea markets are regular events in Indianapolis, and Indiana more widely, Rents for booths or stalls are relatively inexpensive, especially compared to commercial retail space. Flea markets are ideal places for selling discounted goods, due to the lower costs and the fact flea market visitors are generally looking for a bargain. We’ve listed some of the top flea markets in and around the city:

South Side Flea Market

3825 S East St, Indianapolis, IN 46227

Website | 1 317-414-5533

Irvington Flea Market

6301 Washington St, Indianapolis, IN 46219

Website | 1 317-375-1885

Emporium 40 Flea Market

1225 S High School Rd, Indianapolis, IN 46241

Website | 1 317-241-1865

Shadeland Peddlers Flea Market

3440 Shadeland Ave, Indianapolis, IN 46226

Website | 1 317-755-3184

Trader Buck’s Flea Market

150 S Girls School Rd, Indianapolis, IN 46231

Website | 1 317-362-0911

The Farmer and The Flea Outdoor Market

1125 E Brookside Ave, Indianapolis, IN 46202

Website | 1 317-965-6626

Emporium 31

11 Declaration Dr, Greenwood, IN 46143

Website | 1 317-865-1865

Treasures Indoor Flea Market

13615 E Allison Rd, Camby, IN 46113

Facebook | 1 317-831-9154

Freeman’s Super Sunday Indy

10747 US Hwy 136 #101, Indianapolis, IN 46234

Website | 1 317-296-0336

Source: Chamber of Commerce, 2022.

Storage Units in Indianapolis

When buying liquidation pallets in Indianapolis, you need space to store your merchandise. If you’re just starting out, you can just use a spare room or garage to keep your costs down. If you need more space but aren’t ready for a full warehouse, you’ll be happy to know there are plenty of storage units in the city. We’ve listed 5 of the least expensive:

The Store House

2715 Madison Ave, Indianapolis, IN 46225

https://storehouseindy.com/

Pricing

5’x5’: $15 /month

10’x10’: $42 /month

10’x20’: $71 /month

Smith Valley Storage

1614 W Smith Valley Rd, Greenwood, IN 46142

https://www.smithvalleystorage.com

Pricing

5’x5’: $50 /month

10’x10’: $75 /month

10’x20’: $125 /month

Beech Grove Storage

4850 Emerson Avenue, Beech Grove, IN 46203

https://www.beechgrovestore.com/

Pricing

10’x10’: $75 /month

10’x20’: $110 /month

38KeyStorage

3820 N Keystone Ave, Indianapolis, IN 46205

https://www.38keystorage.com/

Pricing

10’x10’: $99 /month

10’x20’: $149 /month

Pleasant View Self Storage

12359 Southeastern Ave, Indianapolis, IN 46259

https://www.pleasantviewselfstorage.com/pages/contact

Pricing

10’x10’: $78 /month

10’x20’: $114 /month

The greater Indianapolis metropolitan area is home to more than 2 million people, more than a fifth of the entire state of Indiana’s population. A significant part of the population lives below the poverty line, and are natural customers of discount goods.

On top of this huge market, Indianapolis boasts a high success rate for startup businesses and offers a favorable tax environment. Buying liquidation pallets in Indianapolis to resell as discount merchandise is a fantastic way to tap into this market.

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