Customer returns often end up in auction for business owners to buy in bulk. Business owners then bid on pallets of such items since these are often sold at a great price. That’s why you should learn how to bid on such items from the right sources for better profit today.
Successfully Buy or Bid on Pallets of Customer Returns for Profit
It’s common for people to return items to stores when they’re not satisfied after buying. But stores don’t simply return them to shelves. They don’t dispose of customer returns either, especially when the products are still in good shape. That’s when liquidation companies come in.
Liquidation companies are third party entities that take care of customer returns, overstock items and shelf pulls. Usually, they pack such items into liquidation pallets, and put them up for sale or bidding.
Many business owners want to buy such pallets in bulk, because these usually come in at significantly lower prices than brand new. That makes it possible for you to build a profitable business model around such items.
Here are few tips on how to bid on pallets of merchandise for your business:
1. Search for the best products to sell
You want to sell because you want to earn big. Finding the right products that can help you earn the profit you want. Don’t just think about products you’d want to buy, think about giving people what they need. Knowing these factors can guide you when you bid on pallets full of the right products.
- Know the products that people hype about on social media. Check trends, hashtags, brands with many followers and pictures with many likes among other cues. That tells you about product categories people love.
- See top sellers in largest online shops, such as eBay and Amazon. Know what type of products under certain categories have many sales.
- Finally, avoid saturated markets to keep yourself away from high competition and low profit. Stay away from products with a lot of sellers, products which seems to never run out of stock and products with a lot of discount.
After knowing the right product to sell, research the best liquidation companies and start bidding on pallets.
2. Search for the right liquidation company
Find a trusted company that offers liquidated items. You can buy items at wholesale bulk prices. Remember you will likely have to bid against other people too.
Here are a few quick points to remember through your search:
- Google the top liquidation companies in your area or check around for referral recommendations. You can also check online directories of liquidation companies as well, such as the Closeout Central.
- Know which choices offer the product category you need. Then, compare price rates from one company to another to avoid overspending.
- Check reviews of the liquidation companies. Never send cash to them when you’re still unsure about their reliability. Read reviews of customers or clients or check the Better Business Bureau website to help you.
These points help you find the right place to bid on pallets This helps you avoid faulty products or receiving nothing after paying.
3. Estimate potential profit
Next, estimate your possible income from selling liquidated merchandise. Here are a few quick points to guide you:
- Check the manifest from the liquidation company. Here you can see the brand, manufacturer’s suggested retail price, volume of items and condition among other vital info.
- When you bid on liquidation pallets for resale online, check the prices that other sellers are listing them for.
- Try checking local flea markets in your area as well. That’s a perfect place to sell goods and earn large margins. Remember to check the MSRP before selling.
Just remember you’ll be buying products for significantly low prices. Instead of paying up to 40 or 50 cents on the dollar, it’s common to find 7 to 20 cents on the dollar through liquidated merchandise.
4. Putting price tags on your goods
Pricing your product is a tricky process. You need to gauge the market and your goods carefully so you can avoid losing profit because of high or low prices. Here are a few helpful notes:
- Remember that the market largely influences price rates of goods, including those you get after you bid on pallets of liquidated merchandise. So, identify where you want to sell from options such as eBay, Amazon, Mercari, Brick & Mortar, Shopify, Offer Up or in the flea market.
- Consider offering rates lower than the average price in the market competition. That can easily attract more buyers.
- You can simply double the price that you paid for goods, too. Be sure your prices aren’t higher than the average price in the market as well. For example, search for what an online retailer like Home Depot is selling items for and compare actual prices in local home stores. That can give you a good maximum limit for your price tags.
5. Be smart during bidding
Auctions are great to help minimize your capital expenses. But, be wise with your cash while bidding.
When you want to know how to bid on Amazon pallets, for example, research about the average price winning bidders usually pay at the end of each bidding. That can give you an idea about when to stop when bids are going too high.
Of course, be sure to stop bidding when the rates are already far off from your intended retail price.
Buying or bidding pallets of liquidated merchandise is a great way to get products in bulks. This helps you save a lot from your capital cash, leading you to bigger possible profit at the end. Be sure, however, to bid on pallets carefully for a successful business.