Buying Customer Returns Pallets for Resale

Buying wholesale merchandise to resell online can lift your business to a higher level, as wholesale merchandise is a lot cheaper to buy. In addition to the price reduction you get when purchasing merchandise in bulk, you will benefit in other ways, such as being stocked for a longer period since you usually buy merchandise in wholesale pallets.

Buying cheaper wholesale products means you will also be able to stay competitive in the market and earn on markup. But there are plenty more advantages you should exploit, and here are a few tips to help you make the most of wholesale merchandise.  

Cheaper Ways to Stock Your Business

Buying the cheapest wholesale products does not guarantee bigger profits because some products are simply cheap because they are low quality. This means that your purchasing strategy needs to be based on some prior research. You need to look for the top wholesale suppliers, learn about market trends, compare retail and wholesale prices as well as the prices offered by a number of wholesale suppliers before eventually deciding what to buy.  

Doing research will not only show you the prices you might be working with but also the market segments that are undersupplied. This could perhaps change your mind to actually look for products that will cater for the demand of a specific market.  

To look for the cheapest quality products means that you have to look for quality merchandise for the lowest price, hence the price comparison between the wholesale suppliers.  

Over the recent years, buying wholesale lots through online liquidation companies has become very popular. Retailers and manufacturers have deals in place with top liquidators to sell their wholesale merchandise using the liquidation companies as platforms, avoiding the wholesalers and keeping the prices even lower. One such example is Walmart liquidated goods for sale, which has a storefront on Direct Liquidation. For you as a buyer, this means an even bigger profit margin and even more cash in your pocket upon resale.  

In addition, top liquidators require that every product listed on the auction website reaches a certain, usually very high, quality standard. So, no matter if you are buying pallets of new, refurbished or customer returned wholesale products you are getting the highest quality.  

But, with the reputation of liquidators and top retailers like Walmart on the line, these companies are looking to provide you with the best service possible as well as the best products possible. This means, that the cheapest products, such as unsorted customer returns could actually be the products you are looking for. These are the products that that get bunched up together in loads, either truckloads, wholesale pallets or other types of lots without actually any tests or repairs attempted on them.

These products are packed in the ‘virgin’ form they were received in upon return. This also means that no one has gone through the load cherry picking the products that are almost brand new and fully functional, which is often the case if you are purchasing from a wholesaler. Wholesalers will buy truckloads of untested customer returns, cherry-pick the best products to create wholesale lots of higher value and leaving the scrap behind.

But in the case of a combination of a reputable liquidator and a reputable retailer or manufacturer, there are some advantages that would bring your business to another level, especially if you use a bit of imagination, DIY skills and lot combinations.  

Profiting from Reselling Wholesale Pallets

As noted, when returned the products are packed untested and so no one has gone through the load and cherry-picked quality products. You will understand why it is important for you to look for untested customer returns that have not been sorted only if you understand how the customer return process works, no matter whether it is clothing, electronics or any other type of product.

According to some statistics, more than 30 percent of products bought online get returned to the seller. This is because, when shopping online, you can’t test or try the product in any way other than by looking at images and reading the description. Buyers might return the product because the packaging might have been damaged during transport, even though there is nothing wrong with the product. The seller might have shipped the wrong size, colour of the product or the buyer changed their mind and after a few hours of use decided that product is not the right fit for them.

This means that a significant percentage of returned products are basically in new or nearly new condition. Some estimates show that 75 percent of plug and play products function with no issues.

However, these are estimates and there are no guarantees when purchasing loads of unsorted and untested customer returns. While you might receive new or almost new products, you might also receive lots of products that have some sort of faults. This is where your DIY skills come into play as you might combine parts from two products that are not functioning to make one that works. Once you factor in the costs, putting in some work and spending time on fixing broken or damaged products pays off.

However, when selling the wholesale merchandise make sure you stay reasonable and apply the right tactics.  

The online sales market is growing significantly each year. There are over 220 million online shoppers in the United States alone, so the demand for any product is there.  

Here you have to go back to the market research you should do before starting any business or making any decisions. If you have recognized the undersupplied markets and have decided to serve them make sure you don’t get reckless and set too high of a price simply because there is not much competition and the demand is there.

Remember that you got the products for pennies on the dollar and make sure you stay reasonable and know that the profit is not made in one large sale but in a series of smaller sales. Especially if you sell high-quality products for a reasonable price, and offer quality service as well, the customer reviews will build your reputation up and, as a result, bring you more customers.

This means you will always have a healthy demand and the only thing you’ll have to do is make sure you don’t run out of stock to sell. And, when you buy pallets of returned merchandise or even truckloads of merchandise to even keep your shipping costs down, you should be well supplied and well prepared to take advantage that the wholesale merchandise gives you.

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