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What are Liquidation Pallets? Definition and Guide

Racks of Merchandise at a Liquidation Warehouse

If you’re starting your own liquidation merchandise buying and selling business or interested in getting into this kind of business, it’s important to remember that one of the most effective ways to make money in your wholesale sales is to buy merchandise by the pallet. At Orotex Liquidation located in Miami, Florida, we offer wholesale pallets of liquidated merchandise.

In your search for suppliers, you may have come across or heard about wholesale pallets offered through warehouse stores’ liquidation. However, you may not have paid much attention because you believe that only low-quality and questionable merchandise is offered, which is not the case.

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    What are Liquidation Pallets?

    Liquidation pallets are surplus merchandise from large retail stores or suppliers that must be quickly converted to cash. These pallets contain several items in the same category mixed in one pallet. Typically, a liquidation pallet consists of overstock inventory or customer returns.

    Large retailers such as Macy’s, Walmart, and Target getting rid of their surplus merchandise. These items take up significant warehouse space, and retail stores need to remove them as soon as possible to make room for new merchandise. This is normally achieved by selling them in bulk pallet boxes through liquidators’ warehouses.

    Numerous factors can result in customer returns, such as damaged or defective products, incorrect sizes or colors, dissatisfaction with product performance or quality, and buyer’s remorse.

    This is how these top-level liquidators buy large retail stores lots and sell them to resellers who buy and resell these high-quality products at only a third of the typical wholesale cost.

    Why are these pallets liquidated?

    The usual assumption is that if the items are in good condition, they would be resealed and resold in retail stores. The truth is that while these items have been lightly used or some are even unopened and still in their original packaging, they cannot be placed back on the shelves and sold as new because they become what is known as Stock B.

    Different Types of Liquidation Pallets

    Salvage General Merchandise Liquidations pallets
    Pallets of Liquidated Merchandise Sitting in a Warehouse

    These products are then packaged into liquidated pallets boxes directly by large retailers to be sold through their top-level liquidation partners, such as Orotex Liquidation, with different types of liquidated merchandise, including refurbished/restored products, liquidations, excess inventory, and customer returns.

    Customer Returns

    Customer returns are merchandise that was once sold and returned by the buyer. There are many reasons why these returns happen; the seller may have shipped the wrong product, the size may not be right, or the buyer may have had different expectations of the product. This happens in physical stores and especially in online purchases. It is estimated that more than $816 billion worth of items is returned each year, according to the National Retail Federation.

    Excess Inventory, Overstock

    Excess inventory or Overstock, on the other hand, refers to merchandise that retailers have over-ordered and never sold. Mostly, this is seasonal inventory that must be cleared out when Christmas or Easter seasons end. This means that these items are still in their original packaging and are new.

    This then provides you with the opportunity to buy high-quality merchandise in bulk from these liquidation stores at prices far below typical wholesale prices and potentially make a profit in resale.

    Liquidations come in different forms, including the following types:

    1. Seasonal Change: Stores change their inventory to reflect the season. For example, winter coats are removed from the shelves during the summer.
    2. Seasonal: Christmas decorations are removed from the sales floor during Easter. Similarly, Easter merchandise is not sold during Halloween and other festive occasions.
    3. Leftover Clearance Stock: Retail stores frequently change their product selection. Once a product arrives in a store, it follows a schedule. After a certain number of weeks, the price is reduced, and then it is eventually put on clearance and sold at a lower price. The remaining stock is then liquidated to companies like This cycle is continuous, and it means that new items are always coming in and old items are always going out.
    4. Damaged from being in the store: Items often get damaged while they’re on the sales floor. Customers may drop items, dent them, or get them dirty. They may also open an item to test it, or even steal something. Additionally, customers may try on clothes or shoes and leave stains on them.
    5. Discontinued – Items get discontinued all the time.  Brands like Revlon or companies like Victoria’s Secret are always making new items so they have to discontinue items (if they didn’t, they would have the biggest catalog ever which would cost way too much to make)
    6. Customer Returns – As you probably guessed, a “Store Return” is when a person returns an item to the store. You may automatically think that a Store Return must be awful but that isn’t always the case. There are several reasons people return stuff

    Liquidation FAQ

    Is the returned merchandise in good condition?

    This is a valid question that is sure to come to your mind, as the condition of the merchandise is of great importance. When looking at wholesale pallet prices, you’ll see that some result in pennies per dollar, most of which are classified as “untested customer returns.”These are products that ended up in liquidation after being returned by the buyer to retailers, manufacturers, or a distribution center. They have not been tested or repaired. While some buyers may ignore these products, here are a couple of reasons why we advise you to opt for such pallets, especially if you can repair electronics.Another reason to get untested customer returns is the fact that products are returned for a variety of reasons. You’ll often receive products that have been returned because the shipment was incorrect, the seller shipped the wrong product, the wrong color, or even because the buyer opted for another product. This, however, is the best-case scenario.Sometimes, however, you may end up buying products that have been returned due to various faults, and these are the situations in which you could reap greater benefits if you are good at repairing them.

    How to buy Pallets of Liquidated Merchandise

    Buying pallets of liquidated stock on a liquidator’s website such as Orotex Liquidation in Miami, Florida couldn’t be easier. Most liquidators require a valid reseller license when you sign up for a free account. Once you’re registered, all you have to do is find the pallet of merchandise you’re interested in purchasing after determining exactly what you’re looking for. Once you find your pallet, you can set up an email alert that will notify you when the pallet you selected is ready to appear in an online liquidation auction. Finally, you just need to enter your bid up to a predetermined maximum limit and wait to see if you’re the winner of the auction.

    Whenever you buy wholesale liquidated merchandise, choose only a trusted liquidator like Orotex Liquidation. We’re one of the best in the business, offering a great mix of inventory, different lot sizes, and a variety of product conditions to ensure that buyers like you can get the items you’ve been looking for. You’ll be assured of getting high-quality merchandise from name brands.

    Undoubtedly, purchasing liquidated products by pallets requires experience, but when you begin to recognize the types of wholesale merchandise that are good to resell, the process can be quite profitable. Meeting a decent price, finding a top-notch liquidator like Orotex Liquidation, working on your negotiation skills, and spotting a good find when you can are the keys to success in this business.

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