Merchandise by the Pallet
If you are interested in starting in the liquidation and wholesaling business it is important to remember that if you really want to be profitable, you have to buy in bulk. One of the most profitable methods for actually earning money in wholesaling is with merchandise by the pallet.
By buying a pallet of merchandise from a company that needs to get rid of it, you could potentially purchase and resell the materials at just the third of the cost that they would be for a typical retailer. Usually as a wholesaler, you will be presented with a truckload of merchandise in which you could take a certain number of pallets of items back. In some other cases you could also be presented with a warehouse full of pallets that you could pick up and move to your facility for resale.
Purchasing liquidation stock and wholesale lots does take experience but when you start to recognize the types of wholesale merchandise that is reasonable to resell, the process can become quite profitable. Sticking to a decent asking price, working on your negotiating skills and spotting a find when you can are all important aspects of the job.
This is something that anyone can get into. You really just need the space, some connections for resale and the strength/equipment to move the pallets. In many small operations, people will buy Wholesale merchandise by the pallet and then sell it via online classifieds or online auction sites like eBay. This is a great way to get started with liquidation stock and wholesale lots.
Larger operations like Eagle Trade, however, to make the process more routable by buying in larger bulks. Although we purchase merchandise by the pallet, we break down truckloads of items and then categorize and list them for sale. On our store floor, for example, you will find items categorized by the style of fashion, season, department and more. We try to lay out our wholesale merchandise in a liquidation stock department store format so that it is just like shopping at any other store. The customer ends up with a great deal on name brand and generic brand fashions/items and we are able to make a markup for our purchasing/sorting/storing effort.
If you can find the right margins for resale, you can find profitability in purchasing merchandise by the pallet in any scale. Just make sure to do your research, crunch the numbers and make sure that the deal is worth while before purchasing a pallet of merchandise.