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    1. GoosePepper is offline

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      #1

      The Risks of Buying Return Pallets

      Im considering moving into the business of purchasing returned or untested pallets and selling them on my ebay store. What are the pros and cons of this particular branch of selling? It seems quite a good idea to me, since the pallets get sold so much less expensive than buying current stock and Id like to make my profit margin bigger in any way I can. I do have a storage unit to keep the stock in and my brother-in-law has offered to help me go through whatever I receive on the pallet.
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    2. McJennings is offline

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      I certainly understand your interest in this particular market and, obviously, making more money is the top concern on every business person's mind. However, there is a certain level of risk that you will want to work within. Risk management is the phrase you need to become accustomed to and it isn’t an exact science, as yet. For you personally, returned or untested pallets may be a worthwhile risk, but I suspect this isn’t the case.

      Let me outline for you why I say that:

      1. Returned and Untested pallets are absolutely going to have damaged goods on them. The question isn’t whether or not you will have any damaged products, but whether or not you will have enough undamaged products to make back the money you’ve spent on purchasing the pallet.

      2. Returned pallets (as well as clearance pallets) are likely to be 2 or more years old. This will certainly have an impact on the price you can get on these products and will affect your overall profit turnover

      3. Items may not be damaged, but may be missing parts. If you are unable to replace these parts or make the purchase worthwhile for your customers, than you are once again in the unhappy scenario of being the proud owner of a pallet of useless stock.

      Hope this information helps.
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    3. HarrisonB_17 is offline

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      #3
      I’d recommend steering clear of these people. You’ll likely come out with nothing but a loss on your hands. The whole lot is about getting you to drop your money on ‘em so the distributor hasn’t run a loss on the load.

    4. GoosePepper is offline

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      Thanks, I’ve been looking about on the internet and have found a few people who say the pallets are meant for those who have the time and experience to process repairs. I suppose it would be safest to make sure to buy things I know how to fix, but otherwise I don’t yet see an issue.

    5. McJennings is offline

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      #5
      Oh!

      Quote:

      Originally Posted by GoosePepper View Post
      Thanks, I’ve been looking about on the internet and have found a few people who say the pallets are meant for those who have the time and experience to process repairs. I suppose it would be safest to make sure to buy things I know how to fix, but otherwise I don’t yet see an issue.
      I neglected to mention a couple very important things you’ll need to do if you do go ahead with purchasing untested and returned pallets:

      1. You simply must get a full manifest prior to purchasing one of these types of pallets. A supplier that doesn’t offer a full manifest is probably trying to hide something.

      2. Ignore the RRP or total value they list for the pallet as it is often inflated or based on the original sell price. This is inaccurate to the value of the goods when you purchase them.

      3. You’ll need to take a percentage of your stock as a write off as well, due to the aforementioned missing parts and bits that just can’t be fixed.

      4. I’d keep away from untested electronic pallets unless you’ve got some knowledge and ability to fix it or know someone who does.

      5. Always research the company before you purchase a pallet. It is always possible that you’ll purchase an untested pallet and come out without a single item that you can resell for remotely close to what you put into it.

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