Liquidation pallets are the best deals you can find, but under several conditions. Buying them should be done after going through several steps to avoid wasted time and money. Many buyers jump in without the necessary knowledge, leading to costly mistakes when buying either small or large liquidation pallets.
To help you navigate this complex market, we compiled information from our experts at Coastal Surplus Solutions. With each one of them being experienced and qualified in sourcing and surplus goods, we are confident you will learn a thing or two.
This helps you avoid common problems and brings your project and business together. More than anything, we want you to protect yourself from the common downfalls in liquidation deals. So, there is no need to make obvious mistakes that will lead you to them.
Mistake #1: Choosing unreliable suppliers (or Not Knowing Who to Choose)
Suppliers or liquidation dealers are the core of your business and items.
When choosing unreliable suppliers, you have close to zero investment that is worth reselling or using for your own project.
While there are multiple trustworthy suppliers, others may misrepresent the contents, send incomplete pallets, or even fail to deliver after payment.
You want to avoid this by:
- Researching suppliers through professional and reliable platforms.
- Ask for references and case studies from other buyers.
- Not taking deals that seem too good. They aren’t good 99% of the time.
- Verify suppliers and if they have a financial interest in retail outlets.
Mistake #2: Not Understanding the Condition of the Pallets
Pallets range from bad to amazing. This is because they are often sold “as-is”, which means that items inside can range from brand-new to damaged pieces.
Learning how to choose a pallet will depend on how you request a manifest listing with the contents, and if you paid attention to the previous mistake.
Many suppliers list liquidation pallets before the sale and offer images and videos of some of the items. However, they will never show the highly valued ones or the very damaged goods.
Get a whole overview of the pallets. According to Ordoro’s research and suggestions, buyers need to go for a comprehensive overview of wholesale liquidation pallets, including how they have been listed.
Mistake #3: The Liquidation Pallets Are Only One of the Expenses
Hidden costs in shipping, handling inventory, and warehousing fees always add up.
The most expensive or higher investment will be on the pallet, but additional costs can lead to your downfall.
Control how much is going to other parts of the investment. Buying in bulk does not free you from shipping and logistics expenses, usually coming from the liquidators.
Mistake #4: Do You Have a Plan?
If not, then everything is over before starting.
Impulse buying pallets without a clear plan or strategy will leave you stuck with inventory. You cannot get profit and capital, and your items will run out of time to be resold.
Avoid going for the obvious pieces and try doing market research. Work on the categories and niches you want, and don’t get more than the demand suggests.
Mistake #5: Not Checking Return and Refund Policies
Yes, even second-hand or liquidation pallets have these policies and terms.
While not all liquidators offer them, many open the option to get refunds in case the product is not what was promised, the conditions are bad, or they overlooked important information. Anything that is shady and unclear about the pallet can be used to request a return or refund.
Make sure liquidators offer these policies and terms. Otherwise, it would be better to move to other options.
Mistake #6: Fraudulent Listings Are Everywhere
Liquidation used to be done in the old-fashioned way: warehouses and people screaming their bets.
Nowadays, everything can be done online. It is more comfortable and less time-consuming, but it opens more opportunities for scams and fake listings.
Always use trusted payment methods like PayPal or credit cards that offer buyer protection. Establish contact with reliable companies as well, and focus on who can be trusted or not.
Mistake #7: Going Big
Right off the bat? Worst idea ever.
Starting big with your liquidation deals and purchases ends up in disaster. Without experience, everything leads to significant losses.
Your purchases should be based on 90% research and preparation and 10% luck. Not the other way around.
Start with one or two pallets to test luck. Then, scale your business or purchases from there.
Why Partner with Coastal Surplus Solutions?
Because you will avoid all these mistakes at once.
Our team offers expert support by connecting you with surplus goods and liquidation items. We offer quality assurance, confirm return policies, and streamline logistics. As a result, you gain all these benefits:
- Cost reduction thanks to streamlined logistics.
- Keeping your investment safe.
- Liquidation of surplus goods that are worth buying and reselling.
- Bulk pieces for your project or personal business.
We help you avoid costly mistakes and maximize your profits.
In case where you are a contractor looking for safety gear and drywall. Maybe a gaming store owner wanting GPUs, mouse, headsets, and more for sale, we are here to source all products in over 100 categories.
ARLL highlights the importance of expertise, experience, and efficient processes. All of this to succeed in this market.
Contact us and let our professionals make bulk buying and liquidation a good plan.
