Top 8 Things to Consider When Purchasing Liquidated Merchandise

In order to raise money, a company will typically liquidate its inventory by selling it off at a steep discount. A liquidation sale typically precedes a business closing. The company is shut down once all of the assets have been sold. In accounting, the term “liquidation” refers to the process of liquidating a company’s assets to raise money to pay off its debtors or anyone else the company owes.

As previously mentioned, liquidated goods—whether they are customer returns, overstock, closeouts, or refurbished/reconditioned stock—pose a significant challenge, particularly for bigger retailers like Amazon, Walmart, and Target. The retailer looks to get rid of their unwanted returns, overstock, closeouts, and refurbished or reconditioned goods as quickly as possible because they don’t want to take up valuable warehouse space, even though doing so will inevitably lower the price they can expect to get for it.

Top 8 things to consider when purchasing liquidated merchandise:


Spending money you can’t afford to lose is never a good idea. If so, get ready to work quickly. Despite how much we detest it, this business can be risky, and eventually, you will lose money. 

Never let fear take the place of those doubts, but proceed with caution until you find a little rhythm. Never consider what others have constructed. You only need to be curious, inventive, and consistent for the time being.


One of the biggest is the temptation to niche your products and/or sales channels. Facebook is not the only channel, despite being trustworthy. 

Resellers have a wide range of options, including eBay, Amazon, Letgo, Offerup, Etsy, Tophatter, Poshmark, Walmart, yard sales, garage sales, flea markets, and swap meets. Keep in mind that some will cost you, but see that as a sign of progress. 


Never rely on a wholesaler’s (or really anyone’s) statements. Do independent research. Build your own networks. While you can easily buy cheap Liquidation pallets from biggest wholesalers of your area and they can offer a sizable amount of startup information, know-how, and data, it is the investor’s duty to comprehend precisely how their money is being used.

Like “broker” and “direct source,” there is a mountain of jargon and acronyms to learn. There are also bin stores and manifests, FOBs, e-commerce stores, LTL, damage rates, ROIs, and AMZ, and that is just the beginning. 


How are products like MOS (marked out of stock), shelf pulls, customer returns, DOT COM returns, box damage, overstock, refurbished, new, etc. different from one another? It’s acceptable to have questions even though there seem to be countless possibilities. 

How are they all able to be so dissimilar? What distinguishes a store return from a dot com return? What distinguishes a shelf pull from a manufacturing reset, and why? I have many questions. 

The good news is that we have already experienced most of it and have heard or seen most of the rest. We are here, along with many others, to assist everyone in earning a little extra cash or locating the deal they’re looking for. You currently have an unlimited number of questions.


What is available for purchase, how much it is, and how much it will cost depending on the relationships one develops with a supplier or source. 

It’s like when a bartender sets you up. Stop requesting that people “cherry pick” their pallets. This expression is a relative one that doesn’t reveal the real meaning of any program. 


Become a good sleuth. The advice to “know who you are buying from” is probably one of the most important and frequently ignored. How long has the company been in operation? Do they have positive feedback? 

Do the reviews seem to be real? Do not believe the rumor mongers or keyboard warriors who are unhappy inside, but pay attention to trends. Better yet, inquire about them directly. Every business will encounter a small number of dissatisfied clients, and no business can offer the best services overall.


Lies are the quickest way to enrage a source or client. Don’t boast about the quantity you can purchase; the supplier likely has a larger customer. Don’t promote one program or product (from your or anyone else’s inventory) over another. 

If you are only able to purchase one pallet, do not indicate that you will soon be able to purchase three truckloads. That is absurd.


Not every pallet will result in a home run, grand salami, or even just a base hit. It is unrealistic to expect to purchase a yacht based on an AMZ Salvage Pallet’s eyeball profit estimate. 

Wholesalers and liquidators pay for the items they sell, and someone has to pay for their construction along the way.


Although pallet flipping has some drawbacks, they are fortunately less common than other business models. You can generate ongoing profits and experience long-term success with appropriate research, wise purchasing, reliable organization systems, and a well-thought-out selling strategy!

When purchasing liquidation pallets from a good sale, keep in mind these fundamental considerations. Make sure you attend a reputable opening or are well-versed in the subject. 

Although there are many more liquidation sales available for shoppers, we have listed the top factors that are crucial for these sales here.

Christopher Stern

Christopher Stern is a Washington-based reporter. Chris spent many years covering tech policy as a business reporter for renowned publications. He has extensive experience covering Congress, the Federal Communications Commission, and the Federal Trade Commissions. He is a graduate of Middlebury College. Email:[email protected]

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