Everything You Need to Know About Pallet Auctions
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Everything You Need to Know About Pallet Auctions

Where do returned goods and excess inventory go? Some end up on store shelves and are resold again, others end up in storage, and others end up as liquidation pallets.

Over time, returned goods and overstock (excess inventory) take a lot of storage space, which increases operation costs. And the only way for businesses to get their money’s worth out of these goods is to sell them off at a discount.

If you are starting a business from the ground up or stocking up your shop or store, buying goods at this reduced price in bulk is a sure way to stock merchandise at a low price.

So, what are pallets?

Pallets are groups of returned merchandise, overstock, and out-of-season goods from big retailers like Amazon and Walmart. Once these goods are returned, they cannot be sold as new items. So what most manufacturers or businesses do is sell these goods at a wholesale price. This is what you call liquidation of pallets.

Before selling these returned goods, the items are sorted into pallets/groups by the kind or type of merchandise they contain. Sometimes, these pallets contain refurbished goods. And most of these pallets have high-quality goods that many people are willing to buy.

Most companies sell these items on online marketplaces like Amazon and eBay and on online auction sites. And in doing so, they earn more money from the same merchandise that would have been taking up storage space and increasing storage costs.

So, what are pallet auctions?

This is a way of liquidating pallets by way of auctioning. Most B2B liquidation sites use online auctions to get more money for the pallets. They hire the services of an online auctioneer to sell the pallets on their behalf at a commission.

Once you get the winning bid, you make the required payment, and the pallet is shipped to you. As a business that wants to stock up, you can buy affordable wholesale merchandise from an online pallet auction site like Auctionwin.

Benefits of pallet auctionsAbout Pallet Auctions

Affordable/low priced goods

The prices of liquidation pallets at an online auction are very low. So, you can get high-quality goods at very low prices. If you are a wholesale seller with physical (brick and mortar) locations countrywide, you can buy the liquidation pallets at an auction to maximize your savings.

Buy goods in bulk

If you deal in certain types of products, pallet auctions are a great way to acquire your merchandise in bulk at a low price. Always having the right stock in bulk keeps you in business and helps you maintain customer loyalty.

Other benefits of pallet auctions include buying a variety of goods, it’s a good way of earning extra income, and it minimizes shipping costs.

How to participate in pallet auctions

  • Log into a pallet auction site.
  • Search through the site’s listings to find the right products. To get the right products, search for them by keyword and category. You can also find out the product condition to ensure that it is perfect for your business.
  • After finding your pallet of interest, place a bid. Choose your maximum bid, relax and wait for the site to make small adjustments up to that point to keep your bid competitive.
  • If the highest bid surpasses your maximum bid, you can either drop out of the pallet bid or match or raise your bid.
  • If you win the bid or auction, you make the payment and wait for your order to be shipped to you.

What condition will the merchandise in the auction pallets be in?What condition will the merchandise in the auction pallets be in

The pallet’s condition (goods in the pallet) depends on your selected condition before bidding. Below are some of the conditions you can choose from:

  • Brand new: this means that the items are retail-ready.
  • Like new: this means that the item or goods are in perfect condition, but its packaging is either damaged or opened. Refurbished goods also fall in this category.
  • Grade B items: these items are restored to “like new” working condition but have some cosmetic damage.
  • Grade C items: items that work according to the original specs but have significant cosmetic damage.

Note: the lower the grade, the greater the pallet auction discounts.

Best places to buy liquidation palletsBest places to buy liquidation pallets


Auctionwin is an online auction site that auctions all product types. Examples include; electronics, fashion, sunglasses, watches, sports and fitness, jewelry, art and collectibles, home and garden items, appliances and accessories, tools and accessories, health and beauty, beddings, general merchandise, and bulk lots.

It also has pallet auctions. This is because it sources its merchandise from popular manufacturers and big retail stores. With Auctionwin pallet auctions, you are assured of the quality of items.

Auctionwin acts as the auctioneer in the pallet auctions, the middleman between the seller and the buyers. Most Auctionwin pallet auctions are valid for US and Canadian citizens.


This is a search engine that connects buyers and wholesale suppliers for millions of products on one site. TopTenWholesale.com has a wide selection of goods at competitive prices with very low shipping fees.

It is great if you are a bulk buyer, drop shipper, flea market seller, boutique or store owner, or eBay and Amazon seller.


BlueLots is great for pallet sellers. It is a B2B marketplace that connects individual sellers, top retailers, and small businesses that want to make money by liquidating their excess inventory wholesale at a profit.

BlueLots is a way for you to establish, earn extra income, and grow your business.

What to keep in mind in pallet auctionsWhat to keep in mind in pallet auctions

  • Do some quality checks before making a purchase. It is better if the auction pallets are returned goods from well-known top-quality sellers like Walmart and Target.
  • Have an understanding of what your lot or pallet contains. A word of caution, like any other transaction or business, there are risks involved in buying auction pallets. So, endeavor to do your due diligence to ensure that the items you buy are high quality.
  • Ensure that the shipping costs are low. Sometimes shipping costs can be too high, which reduces your profit margin.


Pallet auctions are an excellent way to acquire products at a discount. They are also great for a business that wants to make additional income on the side.

For all your online pallet auction needs, visit this page.

Article by

Alla Levin

Seattle business and lifestyle content creator who can’t get enough of business innovations, arts, not ordinary people and adventures.

About Author

Alla Levin

Hi, I’m Alla, a Seattle business and lifestyle content creator who can’t get enough of business innovations, arts, not ordinary people and adventures. My mission is to help you grow in your creativity, travel the world, and live life to the absolute fullest!

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