When large stores have excess returns, clearance, or other items, they look to sell them. But they won’t sell them to just anyone. Typically, they sell them to liquidation companies. If you want to get your own pallets, it’s likely that you need to purchase it through a liquidation company.
The process is not as easy as it sounds. Finding a reputable company with good merchandise can be challenging. By following these tips, you can simplify the process.
Look Out for Scams
In 2018, there were 1.4 million fraud reports in the U.S. Those frauds happened in many industries, including liquidation. If you plan on buying a pallet, you should be wary of scams.
There are several types of scams you can encounter. For one, a company could take your money and never deliver the goods. More commonly, the company might sell you pallets of severely damaged goods. Due to the level of damage, you would be unable to sell the products.
Avoiding a scam is simple. Before you make your purchase, research the company. Find out how long they have been in business and if they have many complaints with the Better Business Bureau.
View the Website
Once you pick a good company, look at their website. You should be able to view the lots that are up for sale. As you browse through their selections, read the descriptions. A salvage lot could include a high percentage of non-working merchandise. Meanwhile, a clearance lot is more likely to contain fully functional merchandise.
The website should be easy to use and self-explanatory. If it doesn’t seem professional or you can’t figure out how to make a purchase, you should look elsewhere.
As you look at the website, consider what type of products you want. You can find housewares, electronics, sporting goods, and many other types of liquidated products. The company you choose to use should have products available in the category you want. To improve your chances at finding inventory, you should work with a company that has products available in many categories.
Understand Their Purchase Options
There are different ways in which you can buy liquidated merchandise. Some companies sell their goods in an auction format. Similar to websites like eBay, they might have several different lots for sale. You place a bid on a lot, and then compete with other members to make a purchase.
Buying your merchandise in an auction can be frustrating. Therefore, you might want to look for a company that allows you to directly buy pallets. In either case, you should find out about the shipping fees. Is shipping included, or is it extra? Will they be able to deliver to your location? Don’t be afraid to ask questions about the fees.
Know What to Do With Your Merchandise
One important detail is the planning. If you want to buy pallets of merchandise, you should have a plan for it. How will you plan on storing it? Some pallets contain large items, and this requires storage space. You may need to plan ahead and find a storage facility. Then, you can get your goods shipped directly to the storage facility.
You should also have a plan for selling your merchandise. If you are able to immediately start selling your items, you don’t need to wait to make a profit. Come up with a business plan and be ready to sell when your first shipment arrives.
