| Sell Rate | Items Sold | Revenue | Profit | ROI |
|---|
When buying wholesale, liquidation pallets, or estate sale lots, your cost per sellable item is what matters—not cost per total item. Account for damaged, unsellable, or low-value items.
The 80% Rule: Assume only 80% of items are sellable. 10% will be damaged, 10% not worth the time. This keeps expectations realistic.
Liquidation.com: Amazon/Target/Walmart returns. High volume, variable quality. Start with smaller lots.
BULQ: Manifested lots with item lists. Better predictability but higher prices.
Direct from Retailers: Some stores sell returns/overstock directly. Build relationships with managers.
Estate Sales: Often "make an offer" on remaining items. Great for vintage/antique niches.
Storage Auctions: High risk, high reward. Research unit contents if possible.
The 3X Rule: Target selling each item for 3X your cost per item. At 80% sell-through, this covers duds and shipping.
Time Value: A $500 lot with 100 items = 100 listings, photos, ships. Calculate your hourly rate. Sometimes smaller lots with better items win.
Niche Down: A clothing lot you know is better than a mystery electronics pallet. Buy what you can evaluate.
No Manifest: If they won't tell you what's inside, assume the worst.
"Retail Value $X": Meaningless. Focus on actual sold comps.
High Minimum: Your first lot should be small. Test the source before scaling.