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A liquidation pallet is a group of goods that have been returned by customers and can no longer be used as inventory. Wholesalers and retailers sell liquidation pallets to willing individuals who then get the wholesale pallets exchanged for cash in a process called pallet flipping. Liquidation pallets usually come in categories of goods. For example, shoes, clothing, and electronics.

Types of liquidation pallets

Pallet sale merchandise usually has a variety of goods all within the same category. For example, shirts, shorts, trousers, and tank tops. There are wholesale liquidation pallets that contain several goods from different categories. These kinds of bulk liquidation pallets are called Special order liquidation pallets. As the name implies, there are usually given on special order.

How to select liquidation pallets?

There are generally two types of liquidation pallets. Manifested liquidation pallets and unmanifested liquidation pallets. Manifested liquidation pallets come with a list that tells you all the things the liquidation pallet comes with. An unmanifested liquidation pallet will give you some information, usually incomplete, about what's contained in the pallet. There are several ways to sell off bulk merchandise. From contacting local suppliers who are in demand of the products in the pallet to going straight to the consumer. For example, liquidation pallets containing electronics or clothes could be sold off to local stores or to consumers.

According to Statista, the global market value of all returned merchandise increased from $643 billion in 2015 to over $1 trillion by 2019. This report showed that every year, retailers are left with a ton of inventory that's been returned by customers. This shows a need for retailers to quickly offload the returned products to make space for new inventory. The price of liquidation pallets depends on the number and the types of goods in them. Stocking a range of wholesale return pallets might be a good idea considering the amount of returned products every year.

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