A side hustle is something that can help you earn extra money on the side, while you work your main job. In today’s day and age, where money is scarce and there is an economic downturn, people are looking for new side hustles. Some common side hustles include being a content writer, a graphic designer, or walking dogs.
But professionals that have a little more money to spare can become liquidation palette owners and sell them to turn a profit. Making money from palette flipping is a good place for any person looking for a side hustle to start. Pallet flipping can be done by anyone with extra disposable income and a little bit of time on their hands.
One can start with smaller palettes to be bought and sold, and once you have a lot more experience, you can start to buy wholesale liquidation pallets from the biggest companies to turn a bigger profit. At the same time, when people hear the term “liquidation,” they think of going-out-of-business sales.
But liquation also refers to stores and online marketplaces selling their returned stocks at a very cheap price. So for a small amount price, you will be able to make a big profit.
Now we must start with what is a pallet. This is not to be confused with a normal wooden pallet. This palette refers to a collection of goods sold by any given retailer (who might be going out of business, selling his extra stock, or selling his share of returned goods) to any other person for a small amount of money to get a lot of new products. The three main reasons why liquidation palettes exist are as follows:
- Items have been returned to the retailer. It does not matter if the item has been used or not, damaged or not, it will be thrown away or cast aside, especially by a large online conglomerate like Amazon or a brick-and-mortar store like Target or Walmart.
- The contents of the current palette are not being sold. An example of this might be the recent pride collection at Target. The pride collection is already discounted, but if no one buys it, then it is likely that this entire collection will end up in a liquidation palette.
- Items were damaged in some way during shipping or were returned damaged by the customer.
A palette is usually a collection of various items. For instance, a beauty palette might also have a few home goods or clothes thrown in. To buy a palette that is especially in contact with something, you will generally have to pay more money.
Here is how you can make a profit by palette flipping. First of all, you need to buy wisely. Just like playing poker, there is an element of chance – you need to take a gamble on some palettes. When buying a pallet, you will need to stick to your bread and butter.
Do not go out of your comfort zone. If something feels sketchy, it probably is. At the same time, all the goods in the pallet will not be sold all at once. If your pallet contains woolen clothes, these won’t be sold in case you have bought the pallet in the summer season.
Secondly, you will need to keep a thorough track of your products, almost like an inventory. It is a good idea to keep a record of the following:
- Name and brand of an item
- Description of items for resale sites
- Item condition
- RRP and resale price
- Whether the item is listed and what site it is listed on
- Whether it is sold
- Amount of product sold for
Research is also your best friend when it comes to flipping pallets. You need to do the research before you buy a pallet and learnliquidation.com will be the best option for you to compare different stores’ list. In case you can get your hands on something known as a pre-purchase itemized list of goods found in the pallet, it will take a lot of guesswork out of the flip. You might also get your hands on something worthwhile. You can also look up the retail price of the goods online and how much they are being resold for so you can weigh your profits against the risk taken.
When it comes to pallet flipping, you need to know your main websites – eBay and Facebook marketplace. eBay is a great option for you to sell your goods on. This is also quick if you are honest about the condition of the goods. Facebook marketplace is a great way to sell locally. People can also pick up large items, which need to be coupled with good descriptions of the goods.
So now that you have all the information about pallet flipping, the research, and the main sites to sell these goods on, what margin of profit to expect? If done right, pallet flipping can yield you a profit margin of 100-200%. If you are willing to put in the time to flip a pallet it is well worth giving it a go – it takes effort but you could see a great return on investment.