Online selling beginners often make one limiting mistake.
They’re only considering brand-new, sealed, in-box merchandise. And by doing that, they are missing out on opportunities for bigger profits and a bigger sourcing pipeline.
BULQ sells liquidation goods by the case, pallet or multi-pallet bundle in the following conditions: Brand New, Like New, Uninspected Returns, Scratch & Dent, and Salvage.
Here’s a closer look at these different kinds of wholesale lots, and how each represents a different business opportunity for the enterprising reseller.
Brand New liquidation goods are a great option for resellers of any experience level. Not only are they unopened, fully functional and “retail ready,” but they also come in their original packaging. The only thing you’ll have to consider is some possible signs of wear on the packaging.
Brand new pallets consist of overstock, liquidation, closeout, or excess inventory. Many retailers move high volumes of their unsold inventory to liquidation simply because they need to make more room on their shelves as other products come in. Because these items are in great condition, they are easy for resellers to process and list. (Before you source, make sure to consider things like checking the item’s sales ranking to see how items fare on the marketplace.)
The idea of sourcing brand new pallets or smaller cases is probably not new to you. But don’t stop there. Are you ready to step up your game? To maximize your selling profits, keep reading to learn why non-new conditions could be a great sourcing opportunity for your business.
Sellers who have success sourcing brand new pallets may also benefit from expanding to Like New condition. Sourcing Like New inventory is perfect for the business owner who operates out of their own fulfillment center (including home!) and is ready to sell through multiple channels. (Find out which marketplace is better, Amazon FBA or eBay.)
The “like new” condition is similar to the brand new condition, but the items may contain some minor cosmetic defects, like small scuffs or marks, or ship in non-original packaging. Rest assured, we require that all like-new wholesale lots bought from BULQ have been inspected by trained technicians to ensure the items are working correctly, and are usually made up of overstock, closeout, returned, or floor model items. Because of Amazon’s strict requirements, we recommend that you also inspect these items yourself before sending them off to an FBA facility.
These products are a great bet for reselling: the condition is almost as good as brand new, and the price is significantly lower. You and the customer both win.
When you see a liquidation lot labeled Uninspected Returns, you may wonder: “What exactly can I expect to find in that kind of wholesale pallet?” Don’t worry, you’re not alone!
Wholesale lots of uninspected returns contain items in unknown or untested condition. Depending on the original retailer’s return policy, some may be retail-ready, while others may not be functional.
Uninspected returns are the industry secret your competitors don’t want you to know about. While the condition of the items themselves often is unknown, BULQ customers have an opportunity to score big wins when purchasing this condition. In some cases, items may appear entirely new, some may be suitable to sell as used, and some may not be sellable as-is. Watch how this BULQ customer breaks down her potential profit on an Uninspected Returns case:
Items in this condition are most often purchased by customers with an adventurous spirit, willing to take a risk for a potentially higher return on investment (ROI). Resellers with the skills to flip goods in varying conditions and sell to multiple marketplaces stand to do well with uninspected returns.
Scratch & Dent
Are you particularly good at turning drab into fab? Are you not afraid of getting your hands dirty to spruce up a product? Unlike brand new or like new items, Scratch & Dent items cannot be guaranteed to be fully functional, but that doesn’t mean you should shy away from this condition.
These items are often missing manuals, accessories such as batteries or chargers, and may not ship in original packaging. In some cases, scratch and dent lots contain gently used or returned items. However, all items in scratch and dent lots from BULQ have been professionally inspected and most lots contain detailed condition notes so you can get a better understanding of the items (and know what needs love) before you buy.
Another great thing about scratch and dent products is that they come at steep discounts and are a great pick if you have a customer or partner who is looking for parts or items to repair.
If you’re buying liquidation pallets in Salvage condition, then you’ve probably got some of the best connections in the business. Salvage items aren’t pretty, but they’re often useful to somebody. They’re non-functional and/or have substantial cosmetic defects, often need extensive repair, or are used for parts. These items rarely come with manuals, batteries, chargers or accessories, and may ship in non-original packaging.
As with scratch and dent lots, with salvage inventory, you’ll want to refer to the condition notes on the manifest for details about the condition of the items. (More tips on reading a wholesale shipping manifest.) Salvage items may have been pulled from the shelves, liquidated, damaged, or may be left over from a bankruptcy, and are often sold for pennies on the dollar.
Salvage buyers are some of the most savvy and resourceful in the business. The market for salvage items are often DIY types who want parts at a low cost, or rebuilders and assemblers putting together their own computers or other devices. Often times, buyers of salvage pallets will flip an entire load to the right buyer. The low sourcing price points can mean major profits and these buyers will know just the right market to sell items for parts or repair.
We hope we’ve given you a glimpse into how to expand beyond only sourcing brand new pallets and gotten you excited about Like New, Uninspected Returns, Scratch & Dent, and Salvage items.
Before you expand into non-new conditions, whether on BULQ or elsewhere, be sure to fully understand the condition definitions and your plan for processing, listing and selling. What sells well on one marketplace may not move on another, so using multiple channels is always a smart move, regardless of what condition or inventory category you specialize in. And don’t be afraid to test and experiment what works best for you.
Our parting tip to you: expand your business by getting into new condition types. Get your feet wet sourcing smaller liquidation lots and try out new selling techniques and channels!