Buying in bulk - whether pallets, liquidation lots, or wholesale - can dramatically increase your profit margins. But it requires more capital, storage, and strategy than buying individual items.
Types of Bulk Buying
| Type | Source | Risk Level | Typical Margin |
|---|---|---|---|
| Customer Returns | Liquidation.com, B-Stock | High | 30-100%+ |
| Shelf Pulls | Direct liquidators | Medium | 50-150% |
| Overstock | Wholesale, direct | Low | 20-50% |
| Salvage | Liquidators | Very High | 100-500% |
| Mystery Lots | eBay, local | Variable | Variable |
Where to Buy Lots
Online Liquidation Platforms
- Liquidation.com: Target, Amazon, major retailers
- B-Stock: Direct from retailers (Walmart, Target, Amazon)
- BULQ: Sorted lots, more predictable
- Direct Liquidation: Pallets and truckloads
- 888 Lots: Smaller lots, lower minimums
Local Sources
- Estate sales (entire estates)
- Storage unit auctions
- Business liquidations
- Flea market vendor cleanouts
- Local Facebook reseller groups
Evaluating a Lot
Before bidding, calculate your worst-case scenario:
- Manifest review: What's actually in it?
- Research values: Check sold comps for key items
- Condition assumptions: Assume worst for blind lots
- Calculate all costs: Lot price + shipping + handling
- Estimate sell-through: What % will actually sell?
💡 The 3x Rule: Your expected total revenue should be at least 3x your all-in cost. This accounts for fees, unsellables, and time.
Lot Math Example
- Pallet cost: $500
- Shipping: $200
- Total investment: $700
- Manifest total MSRP: $3,000
- Expected recovery: 30% of MSRP = $900
- Less platform fees (15%): $765
- Gross profit: $65
⚠️ Reality Check: That $65 profit doesn't include your time to process, photograph, list, and ship 50+ items. Factor in your hourly rate.
Processing Lots Efficiently
- Triage immediately: Sort into keep/sell/donate/trash
- Batch photograph: Set up station, shoot everything
- Batch list: Create all listings in one session
- Price to move: Lower prices = faster turns
- Bundle unsellables: Create lots of your own
Red Flags
- No manifest or vague descriptions
- "Uninspected" or "as-is" with high prices
- Heavy items with expensive shipping
- Categories you don't understand
- Damaged packaging or signs of returns abuse
Best Categories for Lots
- Clothing: High margins, consistent demand
- Toys: Seasonal peaks, good margins
- Home goods: Always sells, low return rate
- Books: Easy to process, predictable value
Categories to Avoid (For Beginners)
- Electronics: High return rates, testing needed
- Furniture: Storage and shipping challenges
- Mattresses/bedding: Hygiene concerns
- Cosmetics: Expiration, authenticity issues
Scaling Up
Once you've mastered small lots:
- Build relationships with liquidators for better deals
- Get a warehouse or storage unit
- Hire help for processing
- Consider truckload quantities
- Develop niche expertise in specific categories
Scam Awareness
- Verify liquidation company legitimacy
- Check BBB and online reviews
- Never wire money to unknown sellers
- Inspect local lots before paying
- Be skeptical of "guaranteed" returns