Can You Buy Liquidation Pallets Cheaply?

Whether you’re a retailer selling directly to the public or a reseller selling to other retailers, you’ll always be on the lookout for the cheapest source of stock you can find to drive down costs and increase revenue.

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There was a time when typical local wholesale outlets were the main places resellers went when they needed to stock up. Even with the wholesalers’ markups added to the price of a pallet, the price was still low enough for a business to make a healthy profit. Sadly, as wholesale prices veer ever closer to retail prices from these traditional sources, resellers’ profits have begun to plummet and it’s now almost impossible to make profits.

So, what to do? Luckily, there is a solution to this problem, and it’s buying liquidation pallets from a top-tier liquidation specialist like Direct Liquidation. So, what are liquidation pallets, what is a liquidator and, most importantly, can you buy liquidation pallets cheaply? Let’s take a look.

What Is An Online Liquidation Specialist?

A top-tier, Better Business Bureau-accredited liquidator like Direct Liquidation operates very differently from those aforementioned traditional wholesalers. Liquidators partner up with some of the country’s biggest retailers, offering them space on their liquidation websites through which these companies can sell their unwanted surplus stock direct to businesses.

Companies such as Walmart and Amazon regularly find themselves in possession of large quantities of surplus stock that broadly fall into three categories. These are customer returns, overstock and closeouts. Let’s take a quick look at each category.

Customer Returns

By far the largest source of surplus stock is customer returns. There are many reasons why customers return products to the big-name retailers. Sometimes, products are found to be faulty and are returned to stores for a refund or exchange. Other products are found to bear slight or noticeable damage either to the products themselves or the packaging (that’s right – some customers return goods because the boxes aren’t in 100% condition!).

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Other products are returned unopened and brand new by customers who have simply changed their minds about their purchases. Whatever the reason, these returns would soon mount up were a liquidation specialist not to step in and sell them via live liquidation auctions or for a fixed or negotiated price on their retail partners’ behalf.

Overstock

Overstock is the term applied to products that are surplus to a retailers’ requirements because they are either products that have been over-ordered or they’re seasonal merchandise that has failed to sell after each seasonal sales period comes to an end.

Closeouts

Closeouts is the term applied to stock that’s left over when a store in a retailer’s chain has been closed or is undergoing refurbishment. Usually, there’s nowhere for this type of stock to go, so the retailer looks to dispose of it quickly via an online liquidation marketplace.

What Are Liquidation Pallets?

Liquidation pallets are customer returns, closeouts and overstock collected together and sold as one unit, usually via online auction. Liquidation pallets can also contain refurbished products – typically wholesale electronics – which are goods that have been returned to factory spec with either original packaging or replacement white or brown plain packaging. Refurbished products come with all original accessories and paperwork save for the original manufacturer’s warranty. In its place is the liquidator’s own 90-day warranty.

The contents of a wholesale liquidation pallet are outlined in each pallet’s manifest, which will tell resellers the quantity of each item within the pallet, the estimated MSRP value of the contents of each pallet and the condition and category of the goods within the pallet. Some pallets are unsorted, meaning the liquidator hasn’t been through the pallet when it comes from the retailer and the manifest will only give you a general overview of what the pallet contains. Unsorted pallets are usually sold for a very low price, meaning the risks are lowered and the chances of returning a profit on the goods within each unsorted pallet are increased because of the very low price paid.

In the case of Direct Liquidation, you’ll find wholesale pallet lots of customer returns, closeouts, overstock and refurbished products being sold on behalf of Amazon, Target, Walmart and Lowe’s Hardware, meaning you’ll find a huge range of brand name and own brand wholesale merchandise sold in a variety of conditions from manufacturers such as Sony, Samsung, LEGO, Black & Decker, Apple, Microsoft, HP, LG, DeWalt and many more. You’ll also find tried and trusted own brand products such as Walmart’s Blackweb and Mainstays electronics and homeware ranges, and Amazon’s popular Basics range.

Can You Buy Liquidation Pallets From A Liquidator Cheaply?

The answer to that is an emphatic yes. The reason why you should switch to buying liquidation pallets from a top-tier liquidator is very simple. The big-name retailers don’t want this surplus stock hanging around; clogging up shelf space in their warehouses that should be housing new products they can sell full price. To make sure this eventuality does not arise, the retailers are willing to vastly lower their expectations when it comes to how much they can expect to sell each liquidation pallet for. This means that customers of online liquidation wholesale marketplaces such as the one owned and operated by Direct Liquidation will pay considerably less for their wholesale merchandise than they would sourcing stock elsewhere.

It’s this vastly lower price that liquidators can offer on their retail partners’ behalf that make buying pallets of liquidations such a great idea. Your business will get a steady supply of top-quality brand name and own brand products sold for well below their MSRP value. You can then pass on considerable savings to your customers, keep one step ahead of the competition and, crucially, vastly increase your chances of turning a handsome profit.

In this day and age where wholesale prices are rising and profits are falling as a result, it’s vital to switch to a cheaper, more reliable wholesaler. That wholesaler is an online liquidation specialist such as Direct Liquidation. So why not check out what they can do for your business today?

Direct Liquidation is a goTRG company.

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