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    1. WheresAnnie's Avatar
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      #1

      Buying Pallet Loads of Returned or End-of-Line Merchandise - Is it worth it?

      Iím thinking of buying pallets of returns from a wholesaler. I want to know if itís possible to make decent money through returns or end-of-line merchandise pallets. Thanks all!
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      #2
      That’s not a given. When you buy pallets of returns or end-of-season merchandise, you may or may not be able to make profits. There’s no guarantee that you’ll be able to even recover your purchase price, but if you’re lucky, you may be able to sell at 200 to 300 percent markups.

      Wholesalers usually make pallets of the products received as returns by big retail chains like Walmart and catalog stores. So, it’s difficult to predict the quality of these products.

      Plus, wholesalers don’t pay attention to whether the products are in working condition or are worth reselling. They just bring together similar kinds of returns and put them on the pallets.

      Your risk is not simply that the returned goods may not work but also that the products that were originally in good condition get damaged due to bad packaging.

      In a nutshell, I can say that buying pallets of returns means you’re gambling. If you’re in luck, you may get an excellent batch of goods and earn good profits; otherwise, you lose money.

      You can buy pallets once in a while, but building a sustainable business by buying pallet supplies is not feasible.
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      #3
      It also depends on the kind of goods you’re buying. If you’re thinking of buying pallets of electronic items, it’s not worth the money and effort. Usually, electronic items in pallets are in a non-working condition and need to be repaired and refurbished before selling.

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      #4
      Only if you deal in selling refurbished electronics should you think about buying pallets. In the worst-case scenario, you won’t be able to sell the products but you could be able to recover some spare parts. This will help your repairing and refurbishing the electronics business.

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      #5
      I bought 3 pallets last year. The experience wasn’t very bad. I made a 20% profit.

      If you want to try your luck with pallets, don’t expect much. The quality of pallets vary a lot. And the profits depend on the quality of products in each pallet.

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      #6

      Quote:

      Originally Posted by Bluewonder View Post
      Avoid buying expensive items, like laptops and plasma TVs in pallets. Fixing defects in these items is difficult, and you may end up losing money.
      Have you thought about buying tested pallets? There are two types of pallets — tested and untested. Though tested pallets are costly, they usually contain good-quality stuff, so the chances of making decent profits are higher.

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      #7
      If a wholesaler tells you that a pallet on sale is untested, it probably means that the products are faulty or damaged.

      Always read the pallet description carefully to avoid any disappointment.

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      #8
      Apart from low-quality stuff, the other problem with pallets is that some items often go missing.

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      #9
      This happened with me too. The wholesaler told me that the pallet contained 4 kettles, 3 toasters, 10 mp3s, and 18 iPods, but when I received the pallet, I found that there were only 12 iPods. I tried to discuss the issue with the wholesaler, but nothing came of it.

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      #10
      I have some advice for those interested in buying pallets. Itís always better to buy pallets from a local company so that you can personally pick them up. Otherwise, the cost of shipping makes it impossible for you to make profits by reselling.

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