A pallet may hold electronics from a specific seller, perhaps beauty supplies, or something else entirely. Many sellers will only sell new, unopened products, so selling returned merchandise by the pallet allows some cost to be recouped while passing the potential for profit on to the individual who purchases the pallet of returned goods. Though buying a large quantity of any product all at once may seem overwhelming and risky, the profit may be worth the trouble if approached with the proper mindset and preparation. 

Your initial focus should be determining whether you will be a niche seller or plan to buy and sell items based on popular trends and the likelihood of profiting. What you decide to buy can determine whether you will face strict restrictions on that product type and where it can be sold. Next, you will want to select your method of selling the items, for example, if you plan to sell only on eBay or to branch out to other options such as flea markets, discount stores, or even a slightly more sophisticated method of exporting. 

Once you have determined your supplier and method for selling, you can begin preparing for your first big buy. Now that you know what you want to buy and where you want to sell those items, you can determine where you will purchase your Amazon return pallets. Finally, with the knowledge you’ve gathered, you can buy your first pallet. Then you can begin selling your items through your desired method to generate a profit. 

Determine Your Product Specialty

Before you can begin to profit from the sale of the items you purchase, you will need to determine whether you’ll have a marketing niche or will instead choose your products based on what is currently trending. Both methods can be profitable, and both have their drawbacks and benefits. 

Choosing a niche can be an excellent option if you are a subject matter expert on a product or an avid user of a specific category of products. By specializing in a niche, you benefit from becoming more knowledgeable in the product you are selling. Specializing in a particular theme means many fewer inventoried items and a greater understanding of your product. This often means better knowledge of what’s an authentically good deal or even simply how to showcase a product to improve sales. Unfortunately, specialization’s benefits are a double-edged sword. 

Specializing in one category means you are limited to that category and could miss significant opportunities simply because they’re outside of your chosen category. Additionally, depending on where you decide to sell your items, restrictions vary based on the product type. Amazon, for example, is much more strict on used products, especially regarding things such as handbags, clothing, and similar items. For this reason, you may also be limiting where your items can be sold if you decide to stick to a niche. 

On the other hand, deciding to purchase items based on trends in popular culture is a great choice, especially if you are just getting started with selling Amazon return pallets. By choosing to follow trends, you can increase your likelihood of profitability, provided you can analyze them and know when to pull out. Additionally, having a variety of items means that you have the opportunity to sell those items in several different places because they all will fall into various categories. 

On the downside, selling many different varieties of things means that you will be a master of none, as the old adage goes. In this sense, you will be much less familiar with the products you come across in your pallets. This translates into a higher likelihood that you will pass up a good deal, or overestimate the value of an item, simply due to lack of knowledge. However, despite this drawback, you can be successful if you approach trend selling with a well-mapped-out plan. It should be based on observed trends, such as how many items were purchased over time. 

Choosing a Platform to Sell

Your next step will be to choose a platform on which to sell your merchandise. As indicated previously, specific platforms have distinct requirements, especially concerning particular goods. For this reason, you must research the forum you are choosing to ensure the items you intend to sell are permissible. The usual options if you prefer to sell online include creating your own personal website, selling through eBay, or selling on Amazon. Through the use of these options, you can sell just about any item you come across. 

You may not want to go the usual online platform route, which is fine; there are many alternative avenues. One option is to rent space in a flea market and sell your items there. Another option is to establish channels for distributing to or owning your own discount store. Finally, you may choose to purchase items and then export them. Exporting goods requires several additional steps but will allow you to sell your goods in another country, meaning a possibly better market and a different set of risks. 

Where to Buy Pallets

With all of the information that you’ve gathered, you can now hunt for the best deals on pallets that fit your parameters. The first and best option is to go in person to Liquidation warehouses to view and purchase pallets. You can find places near you on liquidationmap.com. We highly recommend this, as it allows you the opportunity to see with your eyes exactly what you are buying. Alternatively, you can buy pallets online through sites such as BStock.com, DirectLiquidation.com, and Liquidation.com. Care must be taken when purchasing pallets online and having them shipped to you. Check Better Business Reviews and do your due diligence and do not shop with your eyes. Buying online can be very risky. Read all details carefully before committing to buy. 

Buying Your First Pallet

Whenever possible, learn the exact contents of your pallet when just beginning. There are options to purchase “mystery” pallets and the like, but this is a gamble and not worth tussling with on your first rodeo. If you do this do not spend what you cannot afford to lose. If you are purchasing your pallet online, make sure you have read the description in its entirety and have judged the profitability of the pallet based on the description and any available photographs or supporting documents. If possible, do research on the specific products on the pallet, such as a quick Amazon search to see customer reviews of the merchandise. For example, if you are considering buying a pallet of electronics by Zigzag ABC company, but you see on Amazon that they have primarily one-star reviews, you’ll want to steer clear of this type of merchandise. 

Overall, purchasing Amazon return pallets can be profitable but takes a little bit of knowledge and you have to be willing to get your hands dirty. It not always easy. Once you determine what you want to sell, where you want to buy it from, and where you want to sell it, the process becomes relatively simple. Be sure to research in as great detail as possible when selecting a pallet, even if you purchase based on trending activity. 

 As always, Be Smart and Shop wisely!!!!

Quantum Commodities
Your Direct Shipped Truckload Experts.

We offer all of our products by the truckload – so whether you’re a first time buyer or pro, give us a call! Our product offerings include assorted general merchandise from a variety of categories such as clothing, tools and equipment, gift items, electronics, furniture, and other various household items.

We are a Wholesale Supplier of Liquidation Merchandise that consists of Customer Returns, Closeouts and Overstock Merchandise.

We Provide General Merchandise to: Truckload Brokers, Pallet Stores, Online Sellers, Flea Markets, Businesses, Auctions, and Exporters

https://www.quantumcommodities.com/

The post How to Get Started Buying Amazon Return Pallets appeared first on Liquidation Map.

But how exactly does this kind of business work? If you have been wondering how liquidation pallets come to market, you came to the right place.

Before we get started, you must get a picture of the liquidation process of a company as a whole.

Well, we all know how to return something, right? We walk to the return counter or, if we buy on the internet, or we get a return label and stick it back in the mail to get back our cash or store credit. Oh lets not forget those fancy new lockers you can drop the item off in. When an item is returned it is given a disposition by the asset  management.

The asset disposition of the item will determine where the goods will go. For example, if the item is unopened, it often times is returned to the shelf.

However, if it is open and unused, the item may go to a clearance rack and sold as open box item or could be sent it to liquidate, depending on the store.

The rest end up in one of the following other reerse logistics processes, Donation’s, Recycle/Destroy, RTV (Return to Vendor), or liquidate which is often reffered to as Store Returns.

The bottom line is companies have to find a way to resell or give another purpose for these returned goods. So let’s understand these processes better!

What Can Happen When We Return Goods?

As you can see, we have places where we could channel these products. Whether through Donation’s, Recycle/destroy, Returned to Vendor (RTV), or liquidation. Check some details about each channel:

• Donation: it is precisely what it sounds like. Businesses’ have yearly donations they can max for tax credits. Nonprofits get most of this merchandise.
• Recycle/Destroy merchandise: items with a disposition of recycle or destroyed. Some brands do not want their merchandise on the secondary market, so they elect to destroy it. Which equates to all overstock and returns being destroyed. Some of this merchandise can be recycled, going to a recycling company.
• Returned to Vendor (RTV): this option is usually for manufacturers that have a process to reuse parts or pieces and want the merchandise back. They can use it as cost savings or refurbish the items and then sell them for a slightly lower cost than retail, or they may have a company that does it for them.
• Liquidate: liquidation encompasses almost everything else. The items are collected at customer service and inspected. After that, all liquidate is either stacked on a pallet or thrown in a Gaylord. Then, it is sent to a return facility. The return facility deals with contracted companies where the merchandise is shipped.

The liquidate process is where liquidation programs begin at the store level and where things get interesting.

How Does The Liquidation Process Work?

So, now that you have a clear picture of the key elements of the possible ends of return goods, check how the liquidation pallet process works!

Basically, products get shipped to a companies that take Donations, a recycler, a reverse logistics company, a 3PL (third-party logistics), or a consumer that won a contract.

The focus here is on reverse logistics companies. These companies offer the retailers several services, including scanning to determine the value and manifesting, proposing recovery rates based on data collection, and warehousing and logistics services.

This is when programs where you can buy liquidation pallets are born. The reverse logistics companies do everything from selling raw merchandise to sorting and scanning of merchandise.

The ones that sort and scan do this for a couple of reasons. For example, so the retailer knows what value is on the load.

Then, the load becomes manifested and sold at a percentage of the scanned value. That value is based on the retail value or the manufactures MSRP.

However, these companies may inflate the pallet’s price in this process. This is a grey area where some larger companies can push the envelope of lying to you.

MSRP is the Manufacturer’s Suggested Retail Price. Which is not always what the item is retailed for. This is also referred to as list price.

As manufacturers sell to companies off the list price, this is what they base volume and buyer discounts on. This is big in the distribution side of retail.

Once upon a time, foreign companies used the U.S. distribution process to reach businesses. Not anymore, and more are trying to go direct to consumers and skipping the distribution process. However, it is still in place for the moment.

Common Programs to Buy Liquidation Pallets

The Reverse Logisitics companies create programs to disburse this merchandise. Some can be hard to move or too big for the average buyer, so they must get creative to push it downstream. Otherwise, they could have significant losses.

Here are some popular programs for this process:

• Target GM (raw store returns);
• Target DC (Distribution Center): new merchandise and warehouse damaged product;
• Walmart GM (raw store returns);
• Walmart Dot Com Retruns (raw store returns);
• Walmart Dot Com DC (Distribution Center): new inventory and warehouse damaged products;);
• Walmart DC (Distribution Center): new inventory and warehouse damaged products;
• Walmart Apparel (new, overstock, and warehouse damages);
• Kohls GM (sorted and scanned returns);
• Kohls Categories (scanned and sorted new and returned merchandise);
• Walmart Bikes (raw store returns, sorted and sold as a category);
• Walmart Ride Ons (raw store returns, sorted and sold as a category);
• Dollar General (New Merchandise, raw store returns and store change-outs;
• Home Depot Turbo (contractors returns);
• Home Depot Tools and Hardware (store returns);
• Lowes (raw store returns);
• Academy Sports (export only);
• Dicks Sporting Goods (export only);
• CVS (sorted and scanned): generally new merchandise/box damage; can find returns;
• Lots of grocery stores.

There are more stores and ways to do it, like Amazon’s programs which we will cover at a later date, but these are some of the most frequently bought and sold. This is what truckload buyers, pallet warehouses, liquidation stores, auction houses, and e-commerce people buy.

But be careful: some companies buy this and act in one or more of the following ways:

They either sell what they buy raw or do their own merchandise processing to make unique programs marketed to the public (this where the term “cherry picker” comes from.)

The Cherry Picking process basically means that these buyers skim high-value products off the top, which can be great or not, depending on the perspective and transparency of the seller.

What we mean by that is that if you intend to process merchandise and then sell it, own that, be proud and stand behind your product and what your company does.

But don’t act like so many who say the product is raw or untouched when in fact, they’re processing the value out of loads, taking the higher value items, and selling them via other sales channels.

Lots of these loads are 20 thousand plus. So, skimming merchandise off the top is how the company gets a higher recovery for part of the load.

After that, they depreciate the rest of the load or break it up into multiple shipments, so the price point is more attractive to a larger buyer base.

Final Thoughts

Now you know how liquidation pallets come to market and how they work. You also learned some common programs to buy liquidation pallets and some factors to be attentive to about running a business in the liquidation world.

There are several other points to address on this matter. First, however, we wanted to provide you with an introduction to the subject.

But don’t worry! If you are interested in this topic, be sure to stay tuned and check our future articles on liquidation pallet businesses!

Below you can find sources for liquidation merchandise sold by the pallet, Truckload or by the piece.

Be Smart Shop Wisely.

Liquidation Truckload

Liquidation Truckload

Liquidation Retail

Liquidation Retail

Auctions

Liquidation Truckload

Liquidation Truckload

Liquidation Services

Liquidation Services

Liquidation Services

Liquidation Truckload

Liquidator

Liquidation Retail

Pallet Merch

Bin Stores

Bin Stores

Liquidation Retail

Bin Stores

The post Liquidation Pallets: How Do They Come to Market? appeared first on Liquidation Map.