Everything You Need to Know About Liquidation Pallets

If you are considering setting up your own business by buying goods in bulk and reselling them at a low price, there are a few things you should know if you want to succeed in the process. The main rule to consider is to look for the best quality products at the best possible price. For this, there is nothing better than buying wholesale customer returns from a reputable online liquidation specialist marketplace.

What exactly is this type of merchandise? Generally speaking, large retailers such as Walmart or Target have large returns of merchandise from their customers – estimated to total more than $260.5 billion in returned items per year, according to the National Retail Federation – but because they can’t return these items to their shelves, these shops work with wholesale pallet companies to get rid of what they can’t sell.

These returned items are then sorted and packaged on pallets to be liquidated and resold for pennies on the dollar through these online liquidation marketplaces such as Direct Liquidation. With this, large retailers solve their logistical problems of getting some money back on merchandise and freeing up space in their warehouses.

This then provides you with the opportunity that many are already taking advantage of to buy high quality lottery merchandise from these liquidation shops, at prices well below typical wholesale, and thus have the opportunity to make a potential profit on resale.

In this article, we tell you everything you need to know about this lucrative business of buying and selling online pallets of liquidation merchandise returned from retail giants! liquidation pallets uk

Understanding Return Merchandise
What is an Online Clearance Marketplace?
An online liquidation marketplace is an auction and sales website operated by a top-tier liquidation specialist such as Direct Liquidation, one of the leaders in the industry. Unlike more traditional wholesalers or smaller-scale liquidators, a top-tier liquidator works in partnership with some of the nation’s largest retailers such as Amazon, Target and Walmart and offers them space in their online inventories through which national retailers can sell their customers’ returns at a substantial discount.


So, if you are buying wholesale goods from one of these online clearance platforms, you are likely to buy a wide range of high quality products from some of the world’s leading manufacturers, as well as products from Amazon’s own range for significantly less money than you will find elsewhere.

Most of the merchandise available on these online clearance sites are items returned by customers. Customers return products for many reasons, among them:

The product is defective.
The product or its packaging is superficially damaged.
The product or its packaging is visibly damaged.
The product does not meet the customer’s expectations.
The product does not fit.
The product is incorrect.
The customer has changed their mind about their purchase.
Whatever reasons customers have for returning these items to retailers, the result is the same. Shops such as Amazon or Walmart, are left with piles of products, often products that are technically new, but cannot be re-sold in their shops as they do not classify as new. All these products end up taking up space in these shops’ warehouses, and that is space they could be using to house new merchandise. So what do these shops do with all this? They liquidate them through liquidation shops, such as Direct Liquidation.

For this, retailers like Amazon have entire dedicated departments that deal with reverse logistics, which means they receive the returns, check them, pack them, send them to their liquidation partners and they are ready for sale at significantly reduced prices.

This then gives you the opportunity to buy high quality batch merchandise from these liquidation shops at prices well below typical wholesale, and thus have the opportunity to make a potential profit on resale. On our online liquidation platform, Direct Liquidation, you can find items from some of the biggest manufacturers, including Apple, Samsung, DeWalt, Microsoft and Lego.

Why Choose an Online Liquidation Marketplace?
The simple answer is quality, availability, reliability and price. Top-tier liquidation specialists like Direct Liquidation work directly with some of the biggest retail names in the country, such as Target, Walmart, Lowe’s Hardware and Amazon, which means they not only handle premium-priced products from some of the biggest brands in the world, but also have a regular supply to meet shoppers’ needs. In addition, the products they sell on behalf of the big name retailers are priced well below the value of the wholesale market price of each individual product.

And because you are dealing with some of the biggest retailers in the business with reputations to protect very fiercely, you can have peace of mind knowing that the products you buy will be trustworthy, so you can avoid the unscrupulous practices that are often implemented by some in the marketplace. Careless pallet picking and unreliable manifests are avoided when dealing with a top-tier liquidator, as they not only have their own reputation to protect, but also the reputation of the associated retailers. Therefore, buying wholesale from a liquidator will ensure that they are reliable, superior and always scrupulously fair in their dealings with the companies that buy from them.

What Do Pallets of Returned Merchandise Contain?
Of course, you may be wondering what kind of merchandise you can get inside these returned merchandise pallets. On Direct Liquidation’s online liquidation marketplace, you can purchase high quality pallets of returns in a wide range of categories that will suit your resale business needs.

Categories include:

Automotive, Babies, Books, Clothing, Shoes & Accessories, Electronics, Fixed Assets, Food, Furniture, General Merchandise, Health & Beauty, Home, Industrial Supplies, Jewelry, Office, Party & Occasions, Yard & Garden, Pet Toys & Pet Supplies, Sports, Fitness & Outdoors, Toys, Unclassified.

You can also find clearance merchandise on our website that comes directly from major manufacturers such as Google, Samsung, LG, Black & Decker, HP, Microsoft, Sony and Apple.

All of these products are available through live online auctions or for fixed prices on our website.

Are the paddles of good quality?
There is a common misconception in this business that liquidation merchandise is made up of damaged, expired or slow-selling products, and that this is the reason they are trying to liquidate them. While this may be true in some specific cases, it is not entirely correct. Many of these batches of items are in perfect condition, in their original packaging and unopened, basically brand new. However, these cannot be put back on the shelves of these large shops because they become what is known as Stock B merchandise.

Moreover, as retailers have built their reputations, so have the clearance platforms with which they connect. While most of the merchandise sold through clearance platforms is end-of-life merchandise, there are ways to ensure that you are buying quality products.

First, if the merchandise has been checked and graded, it will certainly be highlighted in the description on the pallet. New goods, such as new or refurbished Grade A goods come with a warranty and are basically top quality. Grade B or C may have slight surface imperfections or visible damage, but may still be functional.

Whatever the case, you can download the manifest for each pallet you buy, which is nothing more than a packing list that shows you the type, quantity and quality of the goods. In addition, you will be provided with the description, the make and model of the item and the rating if the pallet has been checked. It will also show you where the pallet is coming from so you can factor shipping costs into your final equation.

As a result, much of this inventory can be sold again with little or no refurbishment, for customers to buy for pennies on the dollar and then resell in shops, or through online trading sites.

In these marketplaces, lots are sold in different sizes and configurations, so there is always something that may be of interest to you. In addition, lots are also sold through auctions, so buyers can basically bid their prices and potentially win the goods in lots.

Are Amazon’s Cheapest Pallets Returned in Good Condition?
This is a valid question that is sure to pop into your mind, as the condition of the merchandise is of great importance. When you look at wholesale pallet prices, you’ll see that some are pennies on the dollar, most of which qualify as “Untested Customer Returns”.

These are products that ended up in liquidation after being returned by the buyer to retailers, manufacturers, or a distribution centre. They have not been tested or repaired. While some buyers may ignore these products, here are a couple of reasons why we advise you to opt for exactly such pallets, especially if you have the ability to fix electronic products.

Another reason for getting untested customer returns is the fact that products are returned for a variety of reasons. Often you will receive products that have been returned because the shipping was incorrect, the seller sent the wrong product, the wrong colour or even because the buyer opted for another product. This, however, is the best case scenario.

Sometimes you may end up buying products that have been returned due to various faults, and these are the situations where you could make the most profit, if you are good at fixing things. Usually buyers are not interested or qualified in repairing products, and the reality is that if you buy a new product, the last thing you expect is for it to work. But sometimes, products get damaged in transit but the fix is inexpensive. Spending time understanding the defects and their various solutions could give you the benefit you want and a big advantage in your profit margins.

Buying and Selling Return Merchandise
How to Buy Pallets of Returned Merchandise?
Buying pallets of liquidated goods on the website of a liquidator such as couldn’t be easier. Most liquidators require you to present a valid reseller licence when you register for a free account. Once you are registered, all you have to do is find the palette of merchandise you are interested in buying after determining exactly which one you are looking for. Once you find your palette, you can set up an email alert that will tell you when your chosen palette is ready to appear in an online clearance auction. Finally, all you have to do is enter your bid up to a pre-determined maximum limit and sit back and wait to see if you’re the winner of the auction.

When buying liquidated merchandise in bulk, choose only reputable online liquidation auction sites or platforms. The best is Direct Liquidation. It offers a mix of inventory, different lot sizes, and a variety of product conditions so that buyers like you can get the items you’ve been looking for. You’ll be assured of getting high quality, name brand merchandise.

Direct Liquidation has wholesale liquidation distribution centres in the U.S. and Canada that are close to its partner retailers’ warehouses. Its U.S. locations can be found in Palmetto, Georgia; Frankfort, Kentucky; Greenfield, Indiana; Bentonville and Rogers, Arkansas; Spartanburg and Blacksburg, South Carolina.

How Do You Make Money on Return Merchandise?
There are several ways to make money reselling customer returns online. Many people choose to set up an Amazon or eBay shop. This gives them instant access to a huge global market for an inexpensive fee, but you will be a small fish swimming in a very big pond unless you can stand out from the crowd.

Alternatively, you may want to open a shop on some of the more niche websites, such as Shopify and Wix. Unlike Amazon and eBay, these types of sites allow you to try them on for size with free trial periods, meaning you won’t have to set upfront or back-end fees while you check them out.

For many people starting out, the best option is to start locally before launching your lot with an online shop hosting platform. Facebook Marketplace, Twitter and Instagram are great ways to alert people in your area that you have some good stuff to offer.

And then you could also sell through local classifieds and Craigslist. These setups will allow you to reach customers in your local area who will come to charge you, thus reducing shipping costs and further increasing the profits of your new business.

10 Tips for Making Money Reselling Liquidated Merchandise
Research the Market: We all have favourite products or items that we would like to sell, but sometimes the market you would put these products in is saturated. It’s not the products or the service you provide, it’s the nature of the market that won’t allow your business to gain traction because you won’t be able to reach your customers first.
Formulate a Plan: Choosing a business model that works for you is the most important decision you will have to make when you are starting out in the resale business. You will need to consider a number of factors to avoid the pitfalls that the inexperienced usually don’t escape.
Find your Liquidation Wholesaler: It is quite important to choose a wholesale settlement provider that works for you. There are several factors that come into play when deciding this. The most important is that it is a reputable and trustworthy liquidator with a good reputation in the market. A simple internet search will turn up dozens of websites with great, top-tier liquidators.
Analyse Shipping Costs: Shipping costs are another factor to consider when calculating the profits you can make from buying and selling liquidated goods. While you may not realise it right away, these costs will make the difference between the profit and loss of a load. Shipping can be very expensive, so it is advisable to look at what the liquidator charges rather than using a third party courier service.
Read the “fine print”: Never overestimate the quality of your goods! Check the description of the goods. If the goods have been checked and graded, it will certainly be highlighted on the pallet description. New goods, such as new or revised Grade A goods come with a guarantee and are basically top quality. B or C grades may have slight imperfections or visible damage, but may still be functional.
Look closely at whether you can order larger volumes because buying truckloads could give you greater savings compared to buying just pallets in bulk. This will subsequently lower your total and increase your profits.
Use the Right Places to Sell: There are several ways to make money by reselling product returns both physically and online. Many people already have a physical shop or market stall. Others set up their online shop on Amazon or, which will give you immediate access to a global marketplace.
Use Your Contacts Do you know someone who can help you? Is there someone you know who has experience in starting or running a business? Do they have storage space you can use, or experience in hardware or electronics repair? Making use of all the resources you have is the best way to make the most of setting up a new business.
Don’t Forget Your Tax Exemption Businesses that deal strictly in resale can get a tax exemption. If you are only purchasing merchandise for resale purposes, by providing a resale exemption certificate you can avoid paying unnecessary taxes on the purchase.
Find the Most Useful Tools There are countless tools that can help resellers make the most of automation, market tracking, physical processes (such as packaging) and product listing. Research which tools would work well with your business model. Time is money, and any product that can save you time, effort and help you stay on top of trends is something that should never be overlooked.
If you’re looking to make money buying returns from wholesale customers, the best place to buy pallets of products for your new resale business is an online liquidation marketplace. Leaders in the liquidation industry, such as Direct Liquidation, are waiting to help you achieve your goals, so why not see what they have to offer your new business today? Once you buy from a liquidator, you’ll profit immediately!