My business associate is trying to convince me that selling bulk pallets would be profitable since we have lots of leftover clothing from our retail outlet that is out of season. I do not understand how we would put together these pallets and whom we would sell them to.

Hello there. I would agree with your business associate that if done correctly, you can make a profit by selling bulk pallets of overstock items. There are several steps you will have to take to get ready for a sale:

1. Acquire pallets on which to stack the overstock clothing items.
2. Secure the overstock items on the pallet and get it ready for shipping.
3. Create a list to keep with the pallet of what is included on that particular pallet.
4. Advertise that you are selling pallets.

There are two places that you can sell your pallet of bulk items wholesale: charity stores and online auctions sites such as Amazon and eBay.

This seems simple enough. What kind of a profit can we expect by selling our pallets to charity stores as compared to online, and vice versa?

Although many charity stores and thrift shops receive items for free, they also sometimes buy cheap items in bulk that they can mark up to make a profit on. It is not unheard of for people to sell pallets of overstock items to charities and make a profit.

Lots of pallets of overstock items are sold on auction sites such as eBay and Amazon. The profit you will make depends on what styles and brands are on your pallet and how much demand there is for them. If a lot of other people are selling what you are, then you will be fighting the competition. If you have one of a kind items, then you will make a decent profit.

I sell wholesale pallets of toys on eBay and have been quite successful if I do my research and sell at the right times. Be ready to answer customer questions about your stock.

You must make all details about your pallet known. For example, identify the pallet as mixed if it is. Your potential buyers will understand that they could get a variety of different products on your pallet. It is even better if you are able to supply a specific list of products, though.

Also inform your customers about the quality of the clothing on your pallet. The customer will be trying to calculate his or her return on investment if they resell the clothing on your pallet. It is okay to have some damaged goods on your pallet because many mixed lots do; however, publicize the percentage of damaged to non-damaged goods on your pallet.

Also include a grade label on your pallet:
1. Clearance: This might apply to your pallet, since it means a retailer or manufacturer is selling this stock to clear space in its inventory.
2. Letter Graded: There are A, B and C graded merchandise with A being the highest and C the lowest. This implies the quality of the merchandise on your pallet.
3. Returns/Mixed Returns: These are pallets of items returned by customers.
4. Scrap: Items that are sold to resell for spare parts.
5. Clothing Grade: This implies returned or used clothing is on the pallet.

Your comments have been extremely helpful and I am convinced my business partner and I should sell bulk overstock pallets. How do I get started on eBay?

Doing market research before posting your pallet on eBay is a must. Use the advanced search to look for pallets of similar items to what you are selling that have sold already. The items listed in green are the ones that have sold and the ones listed in red are ones that have not sold.

Check the green colored items and note how much money the pallets sold for. Also note what the listings looked like. Base your listing and price on this research.