You could go for the cheapest option and buy pallets of unsorted customer returned merchandise. This not only ensures that merchandise from top brands is being offered, but it also eliminates the wholesale purchase and markup and keeps the prices for you as a buyer below typical wholesale.Īgain, depending on the type of merchandise you want to work with or the niche market you found and are looking to cover, you are presented with a number of opportunities. Many of these returned items are sent to liquidators to be sold by the pallet or truckload either in-person or online to anyone running a resale business. Unless the item is completely unopened this is often not the case. So, what happens to this returned merchandise? Most people think that when items are returned to retailers, they are placed back on the shelves and resold. At least 45% of returns are of unused products.22% received a product that looked different from the online listing.There is also the risk of the wrong item being sent, or damage in transit. Customers may have similar experiences with different types of products: footwear, furniture, home décor, appliances, and more. If you buy a sweater online, you may find out it does not really fit you as well as you thought, or that it doesn’t look as good on you as you expected. The chance to see a product in person and even try it out reduces the odds of you deciding to return it later.
Why are there so many returns for online sales (about three times the percentage of offline purchases)? In fact, 19% of online consumers order multiple versions of an item, choose one and return the rest. It’s estimated that purchases made online stand a 30%+ chance of being returned. Buying and selling customer returned merchandise allows you to start with much lower capital.ĭue to more and more people making online purchases, there has been a surge in the number of returns, and a swing towards completely unused items being returned.
Why Source Liquidation Pallets of Merchandise?Īs we have already seen, sourcing brand-new merchandise to sell is costly – you need a large investment to buy products at prices that allow you to sell competitively. Through this stream, many are now able to push resale prices so low. While a large portion of merchandise is customer returns and very cheap products, there is no denying that liquidated merchandise is changing the e-commerce landscape. When speaking of liquidators and liquidation business, many people get the idea of scrap, used or broken merchandise that no one wants to buy due to the condition or quality. There is, however, a middle ground: liquidated stock. This in turn requires a significant investment from the start. While you could buy directly from the manufacturer, you would usually be faced with a very high minimum order requirement. Purchasing merchandise from a wholesaler makes no business sense if it doesn’t make you money. Once you factor in the shipping costs, your profit margin dwindles quickly, which in turn shows that if you are not buying large amounts of merchandise to push the price per unit down even further. However, if you look closer at the online marketplaces, single items being sold online are getting very close to their original brand-new wholesale prices. Wholesalers deliver merchandise to smaller buyers as they enable buying merchandise by the pallet. The ‘traditional way’ would be to look for a new-stock wholesale supplier to stock up. Let’s look at the options you have and where to buy pallets of merchandise. This can play a very significant role in bringing success to your venture.
In short, if you are only starting your business, it is important to do it the right way, complying with the regulatory framework of your state, it is also important to source the merchandise from a reputable supplier, and one often overlooked but very important point is the ability to source this merchandise near your place of business- cutting down on delivery costs.
Some guidelines on how to achieve just that follow in this article. To give yourself the best chance of running a successful online resale business, the aim is to keep all your procurement costs as low as possible without sacrificing the quality of the merchandise in order to ensure competitiveness in any market without narrowing your profit margin. Shop Liquidation Pallets of Returned Merchandise <<