While focusing on a single niche and category is profitable, you may want to mix things up for more profits and to maximize your investment.
Mixed liquidation pallets, which are unsorted lots of general merchandise, returns, and overstock, offer great opportunities for high returns. Of course, as long as they are approached right and with caution when purchasing the pallets.
Risk and complexity truly define all the process of getting them, but research and analysis can simplify this whole process.
With the right mixed liquidation pallets strategy, you can turn a modest investment into substantial profits. This includes revenues that go from $2.000 investments to $8.000 in profits alone.
Many resellers started venturing when they realized the benefits of having variety. While buyers do go for specialized stores depending on the category and market, they also wish for comfort.
This leads them to relying on a single place to acquire their items. This can be within the same industry and market, or with a wide variation of the options for sale.
At Coastal Surplus Solutions, we have been handling mixed liquidation pallets for over a decade. We know how to maximize your ROI, navigate the challenges of this business model, and help you through the process.
Before you decide to invest your time and money, take the time to learn a thing or two about this project.
Risk Assessment: Understanding Manifest Accuracy and Categories
Not all mixed pallets are created equally. This is the risk of working with this model and specific lots.
You need to go over multiple steps to make sure your investment is worthwhile and won’t cause losses instead.
You can assess risk by:
- Reviewing manifests before the purchase. Some suppliers, if not all of them if they are reliable, provide detailed manifests (itemized lists). While some will be more specific than others, you can have a good idea of the risk of receiving the lot or purchasing it. you can check the items in it, brands, and often, the conditions.
- Category awareness: Mixed pallets may include everything. Electronics, apparel, home goods, or seasonal items. Depending on the liquidator, the categories may switch. Learn about the best options and how you can maximize those resales.
- Start small. While this project begins with bulk purchasing, it does not mean you require a monstrous amount for investment. Focus on quality over quantity before scaling up and go for a low minimum of quantities.
Sorting Strategy: Categorizing Items for Different Sales Channels
If you will incur in this market, keep in mind that multiple channels will be needed for sales.
Sorting is essential in this option to maximize mixed pallet profits. However, the case of sorting is not only the categories and grade of your products but also the platform used to sell them.
When you go over all the steps, you want to work on establishing a platform for each type.
However, keep it in order:
- Separate by category. Sort them into groups such as electronics, clothing, and, depending on the ones you have. This will allow you to sort them out for buyers.
- Channel matching. You want to move high-value or branded items through eBay or Amazon. Meanwhile, bulk options and lower-value items perform better in local shops and at flea markets. Facebook Marketplace can also be a great option for local pickups.
- Refurbish when possible. If any item is in a questionable or not 100% optimal, consider refurbishing it for higher prices.
Always maintain a transparent and clear communication. You don’t want to lose clients before getting them for not expressing the refurbished condition, if it is a returned good, or if it is actually a brand item.
Pricing Strategy: High-Value vs. Bulk Lot Sales
Not all items will cost the same. Not only because of their nature but also the quality and specific category they belong to in terms of returns, goods, and liquidation deals or shelf pulls.
A smart pricing approach can dramatically improve your mixed lot liquidation profits. Hence, take your time with it.
According to the Small Business Bureau, working on a strategic sourcing and pricing approach will increase profits by 20% or more. It is worth the time and effort that goes into it.
All you have to do is to go over researching the market prices, tiered pricing on premium and in-demand product lists. Also, consider the factor in all costs and how shipping and delivery influences this.
Reseller Turns $2.000 Mixed Pallet into $8.000 Revenue
A recent example highlights the potential of these pallets.
A reseller in the state purchased a $2.000 mixed pallet. He sorted it and listed high-value items only on two platforms: eBay and Amazon.
The rest of the items were sold in bulk lots locally and this reduced costs in shipping and logistics.
After deducting shipping, fees, working with any delivery service, and handling minor refurbishment costs, they generated $8.000 in revenue.
This is an impressive 300% ROI considering how the success is driven by only $2k. This can lead to 4 purchases of the same magnitude and recurring profits from the same strategy.
Coastal Surplus Solutions can help you achieve this as your sourcing partners and experts in the area.
We connect you to the goods and focus on streamlining logistics and handling shipping. This reduces costs on your end and brings all the benefits.
Contact us today for unsorted pallet investment tips, mixed lot liquidation ROI, or working to maximize mixed pallet profits.
