Exporting US Liquidation Pallets into Mexico

The reputation around the globe of merchandise manufactured and sold in the United States is that it gives you the best value for money. It is not unusual for customers in other countries to try to get any sort of merchandise produced in the United States. Some buy to use it themselves, but some are looking to purchase larger quantities for resale.

Customers from neighboring countries of the United States, Canada in the north and Mexico in the south, have a significant advantage over other customers due to the simple fact that the these three countries have signed the North American Free Trade Agreement (NAFTA) in 1994. This agreement eliminates duties and restrictions in order to boost trade options. In May 2017, the US President Donald Trump, voiced his intention to revise the deal in search of opportunities to further grow the US economy and boost trade opportunities with its two partnering countries.

What this means for someone looking to import pallets of liquidated stock from the United States into Mexico or to purchase already imported US liquidation pallets is that the merchandise is more accessible, the import process is more streamlined and the shipping costs are lower than with other countries. Although the tariffs and duties have been phased out in 2005, a value-added tax or IVA (as it is know in Mexico) is applied at a rate of 10 to 15 percent, depending on the destination of the merchandise. In case you decide to import merchandise yourself, and a new to doing this, do contact your local authorities or an attorney or even a broker to help you with the import procedure and also get familiarized with the NAFTA.

In case you decide to import US liquidation pallets yourself, make sure you follow the regulatory procedure and fill out all the required documentation. Mexican Customs demand all Mexican buyers to obtain permits, make all the required payments to the authorities and contract a Mexican Customs Broker.

If you are looking to purchase merchandise that has already been imported, here are a few things you need to know about liquidated stock, how it can boost your online resale business, and how to choose your source.

What is Liquidation Merchandise?

Merchandise produced and manufactured in the United States has built up a world wide reputation of being the best value for money, which certainly boosts its appeal to customers. Liquidation merchandise, as a bonus, appeals to buyers looking to get their hands on cheap merchandise, because liquidated stock is priced below wholesale.

There are a number of reasons why merchandise is liquidated, and these reasons will mostly determine the price point and the type of liquidated merchandise. For example, if a company closes its doors, the remaining merchandise is liquidated, meaning it is packed into pallets and sold. This merchandise can be brand new and unused by the company, or used, which would include office equipment, computers and such.

Very often you will be able to purchase shelf pulls or customer returned merchandise, or something that is called closeouts merchandise or overstock. The latter two come at the higher price point for liquidated stock as they are usually brand new merchandise that has either not been sold by the time a new collection has arrived to the store, or it never put on the shelves because the store management ordered excess amounts of it. Although at the high point of liquidated merchandise, these two types are sold at 25 to 50 percent below wholesale. Now you can see the price appeal of liquidated merchandise.


What is the Best Liquidated Merchandise?

The answer to this question actually depends on what you are specifically looking for. Maybe you are looking to buy wholesale electronics for resale or you are just interested in buying returns pallets. Maybe you are interested in buying clothing to resell, or home appliances. In terms of market dynamics, the most profitable wholesale items don’t have to be the ones that are most popular. If you take a look at the electronics market, for example, it is certainly the market with the toughest competition where the prices of single units are close to wholesale. So even though the electronics market is very profitable, you may find that by choosing a niche market, where the demand is far higher than the supply, your profit margin could be even higher. In any case, the liquidation business provides you with the opportunity to maximize your profit, if you play your cards right.

Liquidation companies provide you with merchandise that is priced below wholesale, and the merchandise condition ranges from unsorted customer returns to brand new closeouts merchandise. A large portion of the merchandise is sold untested, ‘as is’, which for some raises concerns regarding the quality of the products. This is why now we will look at the way liquidation business operates, which is the focal point in providing a level of security for customers interested in liquidation merchandise.

How Does Liquidation Business Tackle Quality Issues?

The answer to this question will give you an insight into the way the liquidation business functions as well as to how your research skills will help you secure quality merchandise.

When manufacturers and retailers receive customer returns, this merchandise, no matter why it was returned, can’t be resold as new. The merchandise either goes into customer returns straight away or sometimes is refurbished and prepared for resale.

Now, while you could look to purchase pallets of this merchandise directly from the retailers and manufacturers, which would also be the most direct and often cheapest option, you are faced with a high minimum order requirement. This is a system that limits access to small buyers with limited budgets and is geared more towards wholesale buyers that purchase merchandise by the truckload. This causes an issue for you, the buyer, because once the wholesalers buy the merchandise, it is broken up into smaller lots and pallets and sold with the wholesaler’s markup. This leaves very little room for profit for you.

Liquidation companies, on the other hand, don’t purchase or own the merchandise that is liquidated. In fact, they serve as a platform for retailers and manufacturers that wish to reach a larger online audience quicker and sell the merchandise directly to you. This is why you’ll see large retailers like Walmart opening storefronts at liquidation companies to bring Walmart liquidations merchandise closer to a larger buyer audience.

Now, a retailer such as Walmart is a sort of a guarantee when it comes to merchandise quality. Top liquidation companies will look to work only with such retailers and manufacturers, because they are looking after their reputation, which they have built over the years. This means that you should not just buy the first US liquidation pallet you find for sale in Mexico. Rather, you should actually make sure that you are buying from a reputable company that will not only provide you the quality merchandise but will also give you detailed information about each and every pallet through the manifest. This is a list showing you the type, the state and the quantity of merchandise within each pallet or a lot. If this is scarce or completely missing, stay away from that source.

So, if you are interested in purchasing US liquidation pallets in Mexico, or looking to import them yourself, make sure you follow the regulations and customs procedures and also buy only from reputable sources.

Direct Liquidation is a goTRG company.

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Corey Griffin

Corey works as a sales representative for Direct Liquidation helping businesses to source liquidation inventory from the world’s top retailers and manufacturers. Corey works with single pallet, LTL and truckload buyers directly to ensure they stay in stock with high quality inventory year round.

Schedule a sales callback with Corey right now and find out how he can help your business profit with liquidation merchandise.