Starting An Online Liquidation Pallet Resale Business

If you’re thinking about starting your own business, what’s the type of business that stands the best chance of succeeding in today’s ferociously competitive retail environment? Many people believe it’s one where merchandise is sourced locally from third-party wholesalers, but this not the case. Traditional wholesale suppliers not only charge hefty premiums, but are also frequently guilty of buying pallets of wholesale merchandise, breaking them up into smaller lots and creaming off the good stuff to sell separately later. What’s left is advertised as A grade stock, but it’s usually worthless junk that the unsuspecting buyer will lose money on.

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And then there are the prices wholesalers charge these days. As well as adding their own premiums, the prices some wholesale suppliers charge are closer to retail prices. So, even if you are lucky enough to buy a box or pallet of wholesale merchandise that’s actually worth selling, there’s a high chance that the profits you’ll be able to make will be next to nothing thanks to that high wholesale price.

So, not the best type of business after all. But what is? Well, one surefire way of ensuring your startup has a reliable flow of top-quality merchandise that’s sold at a price that won’t break the bank is to buy pallets of liquidated stock from a reputable, Better Business Bureau-accredited liquidation specialist such as Direct Liquidation. Here’s how it works.

What A Liquidator Can Do For Your Startup

A top-tier liquidator operates their business in an entirely different way from the aforementioned smaller scale wholesale suppliers. Top-tier liquidators run online liquidation auction websites that sell pallets of surplus merchandise to resale businesses on behalf of some of the biggest names in US retail – names such as Target, Lowe’s Hardware, CostCo, Best Buy, Amazon and Walmart.

So, how exactly does it work and what can a liquidator do for your startup online business? As we’ve touched upon, liquidators enter into partnership with the country’s biggest retailers, offering them space on their online liquidation wholesale platforms through which the retailers can sell their unwanted surplus merchandise direct to resellers looking for a hefty discount on the stock they buy in bulk wholesale.

There are several types of surplus merchandise that the retailers wish to dispose of. They are as follows:

Customer Returns

By far the largest category of liquidations a liquidator sells on behalf of their retailer partners is customer returns. These are products that are brought back to the retailers for a number of reasons ranging from the products being faulty to customers getting a case of ‘buyer’s remorse’ and returning what are basically brand-new products back to stores. No longer able to classify these returns as new products, retailers look to dispose of all their returns so they do not take up valuable space in the retailers’ warehouses.


Overstock refers to merchandise that has been over-ordered by retailers. Mostly, this will be the seasonal stock that needs to be disposed of when seasons such as Easter, Halloween and Christmas come to an end. Overstock is also stock that has become surplus to requirements thanks to newer models coming onto the market.


Closeout merchandise is stock coming from a retailer’s store that they’re closing or restructuring. Usually, retailers don’t have the room to accommodate closeouts in their other stores and so look to liquidators to dispose of the stock on their behalf. As a result, closeouts tend to be brand-new merchandise on the whole.

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You will also find pallets of refurbished merchandise on a liquidator’s online liquidation wholesale marketplace. This is merchandise that was found to be faulty, was tested, repaired and returned to factory spec. All original accessories are either present or replaced with new ones and the products come in either their original packaging or plain white or brown replacement packaging. Refurbished products typically come with a 90-day liquidator’s warranty.

So what does this mean for your startup? Well, it means that because a liquidator works directly with its retailer partners to bring you the best-quality returns, overstock, closeouts and refurbished merchandise, your new business will always have a steady supply of top-quality wholesale merchandise to choose from when sourcing stock from a liquidator.

And by top-quality wholesale merchandise, we really do mean that. Thanks to the fact the big-name retailers sell a huge range of brand names, that’s exactly what you’ll find on a liquidator’s online auction platform. You’ll find brand name goods coming from manufacturers such as Calvin Klein, BOSCH, LEGO, Microsoft, Dove, Google, Apple, DeWalt, Fisher Price, HP, Samsung, Disney, Hallmark, Sony and many, many more.

When looking for pallets of top-quality wholesale merchandise to give your brand-new startup the boost it needs right off the bat, you should look no further than an online liquidation marketplace.

Buying Liquidated Pallets From An Online Liquidation Marketplace

Buying pallets of liquidated stock from a liquidator couldn’t be easier. Most liquidators require you to produce a valid reseller’s license when signing up for a free account. Once you’re signed up, all you’ll then need to do is locate a pallet of merchandise you’re interested in buying after figuring out exactly what type of merchandise you want to specialize in selling. Once you do find a pallet, you can set up an email alert which will tell you when the pallet you’ve picked out is about to come up in an online liquidation auction. Then you just need to enter bids up to a predetermined maximum bid limit and sit back and wait to see if you’re the winner of the auction.

If you’re the successful bidder, all you then have to do is pay for your pallet and arrange shipping. As a startup, you’ll no doubt be looking to keep things like the price of shipping costs down to a bare minimum. Luckily, most liquidators are happy for you to pick up your pallets directly from their distribution centers, thus cutting down on costs. If that’s not possible, be sure to check out what the liquidator charges to handle the shipping for you. In many cases, a liquidator can offer a better shipping price than a third-party courier, so it’s always best to check.

Starting An Online Pallet Resale Business

So, you’ve decided what type of liquidated stock you want to sell, you’ve bought your first pallet of surplus merchandise and you’re now ready to make money online selling to the public. What should you do? Well, many startups start locally. Advertising your stock on sites like Craigslist will help you connect to potential customers, and as they usually come to you to pick up the goods they buy from you, you’ll cut out the expense of paying for postage and packaging or couriering.

If you’re thinking a bit bigger than local classifieds, you’ll no doubt be eyeing up sites like Amazon and eBay. While these are the big boys of online marketplaces, their fees and charges may eat into your profits until you’ve built up a big enough operation to absorb these costs, so why not try some of the smaller store-hosting sites such as SquareSpace, Big Commerce, Shopify and Wix? Most of the smaller store-hosting websites offer free trial periods, meaning you won’t have to splash out any more of your precious budget while checking out if they’re the right fit for you.

As well as using local classifieds and starting up your own store on one of the smaller hosting sites, you should also take full advantage of social media. Instagram is a great way to show off your wares, especially if you’re a dab-hand at taking an eye-catching photo and engaging with people. Facebook’s Marketplace is an inexpensive way of reaching customers far and wide and the site offers relatively cheap targeted ads that will pinpoint customers interested in buying what you have to offer. Nowadays, social media is an important part of any startup business strategy for the marketing opportunities the medium presents, so ignore it at your peril!

However, you choose to sell your goods online, by using the services of a top-tier liquidation specialist you’ll be getting your resale business off to the right start. Thanks to the unique partnerships liquidators forge with their national retailer partners, they always have a steady supply of top-quality stock to offer, and all sold for a price that will leave plenty of room to make a healthy profit – good news for anyone looking to start their own online business.

If you want to jump into the exciting world of online retail, you should consider sourcing pallets of liquidated stock from an online liquidation sales platform. It’s the best choice for any startup looking for a cheap, reliable source of the best quality stock.

Direct Liquidation is a goTRG company.

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