Major manufacturers and retail chains can’t always sell 100% of their inventory. This leads to debts and unnecessary inventory space-holding.
Liquidation companies buy their overstocked, unsold, customer returns, and shelf-pulls for huge discounts. Bundled into pallets, these products are no less than a treasure!
This has led to a popular earning opportunity: flipping liquidation pallets, i.e., buying pallets or other bulk items and reselling them at retail price.
So, if you’re curious about how to flip liquidation pallets online for profit, this guide will help you build a successful business from scratch!
1. Find a Reliable Liquidation Company
There are several big liquidation companies, and it can be difficult to research and spot a reputable one. If you need a recommendation, our top pick is UpLiquidation, the #1 Liquidation Company in the USA since 2015.
With over 15 years of experience, they have direct contracts with the greatest retail giants, manufacturers, and wholesalers. Known to serve a wide array of customers, this is the perfect place to get started!
Whether lots, pallets, containers, or truckloads, they are available for a range of product categories. There’s no middleman, ensuring the most competitive rates and high profits.
Their complete listing is from their own inventory which undergoes strict quality control process. The customer support team is also quite responsive which makes order placement extremely easy!
2. Get on Call with Them
Once you settle on the supplier, contact them immediately and get clarification on the following.
Payment: Some companies accept all sorts of payment methods, while others accept only limited credit and debit cards. Know the payment ahead of time so you don’t miss a promising load just because you’re not prepared to pay.
Pickup: Some liquidation companies arrange freight for you while others have delivery as well as self-pickup service from their warehouse. Be aware of the delivery plan so you can prepare to invest accordingly.
Return: Learn about their returns policy. Do they entertain returns and refund your money? Remember, no returns policy is not a red flag. Liquidation companies with their own warehouse usually won’t accept returns because they deal with limited inventory, which is almost always full.
Note: You can also check their Service Terms and About Us pages. However, when in doubt, a direct call is better!
3. Evaluate what Products You Need
If your inventory has limited space or you want to sell products from online store and not face customers at all, select smaller products.
If you have enough inventory space and are open to selling products in-person, you can go for both big products as well, such as appliances (mini-fridge or coffee makers) and furniture.
This is because customers prefer to buy expensive items in person. If your online store hasn’t made a name, big products won’t sell and you’ll incur losses.
Lastly, consider what products customers demand. Stick to those categories to make the most out of your venture.
4. Assess the Value and Profits
Once you’ve decided what you want, start browsing through chosen websites. Find a pallet that fits your budget and research the listing further. Check for:
a. Manifest
Check the manifest listing and ensure all goods are within your expected categories.
b. Condition
Liquidation pallets contain goods of all condition. Some will be brand new and ready to sell. Others might be defective or used.
Know the condition to understand whether it needs refurbishing. If it does, exactly how much must you invest in refurbishing?
c. Profit
Add the pallet price, shipping fee, any repairs, and price for renting inventory (if any). If you’ll also offer delivery service for your products, add an average value for that. Now, compare it with retail value to estimate your profits.
Buy a pallet only if you have a good profit margin.
5. Finalize the Purchase
If it’s your first time buying a liquidation pallet, choose a small and less expensive one. Thus, you won’t risk a high upfront investment.
During the buying process, you can also contact the company’s customer care and negotiate for a better deal.
6. Sort them Out
After the pallet is delivered, carefully unpack the pallet and clean any dust off them. Check each item for damages. If you get electronics, test whether they’re working.
Sort items into two groups in separate boxes or containers: Ready-to-sell and Damaged. This will help you list items better.
Repair the damaged products to enhance their resale value.
7. List Them in the Right Places
Consider where you want to sell your products. You can either put them up on your own online store or go for Amazon, eBay, or Facebook Marketplace.
List the items in an attractive way using detailed and clear product name. Write an accurate description about all primary features. If necessary, you can look up inspiration for name and description from other sellers.
Upload quality and aesthetically appealing photos from several angles. Ask yourself whether you’d buy a product if you saw the same pictures.
Lastly, check similar listing prices online and mark a competitive price on your product. Additionally, place discounts on bulk/bundle purchases.
If customers connect with you directly, offer them satisfying answers to ensure sales!
8. Invest in Marketing
Promote your products on social media along with quality pictures and testimonials (if any). Offer limited-time discounts to attract more buyers. Especially go all out during festive seasons with email marketing and influencer promotion if you have the budget.
9. Keep the Profits Rolling!
Track the expenses and profits in your database and ensure the business is viable. When you earn enough profits, invest in more amazon liquidation pallets. Ensure you never go completely out-of-stock or overstock goods.
Final Thoughts
Flipping liquidation pallets online is a rewarding business model. However, you must choose the right liquidation partner to source reliable and high-quality pallets.
You must also invest enough time and effort to understand the market demands and stay updated with any changes.
With careful marketing, strategic preparation, and cautious steps, you can build a lucrative business in no time right from your home in no time!
Read more:
How to Flip Liquidation Pallets Online for Profit
