Truckload Liquidation Auctions: How to Get Started

If you’re a reseller looking for a large volume of liquidation merchandise, you should consider buying customer returns and overstock from truckload liquidation auctions.

What are Liquidation Truckloads?

Liquidation truckloads are semi trailer sized loads of merchandise packed onto 26 standard 40×48” pallets with a gross weight of 45,000lbs or less. Liquidation merchandise is typically from a retailer or manufacturer and may consist of customer returns, overstock, shelf pulls or end of life products.

Why Buy Liquidation Truckloads?

• An estimated $428bn worth of merchandise was returned to retailers in 2020, up from $351 billion in 2017. This year-on-year increase means retailers have much more excess inventory they need to unload creating more opportunity for resellers.
• Liquidation truckloads contain inventory from the largest retailers in the US. Buying truckloads of this merchandise means you’re buying the same items these retailers sell so you know there is demand for the product.
• Buying by the truckload reduces your per-pallet and per-item shipping costs.
• Buying liquidation truckloads from a well known retailer mitigates the danger of buying counterfeit goods from unscrupulous online suppliers.
• Buying by the truckload rather than by the pallet splits your risk over 26 pallets rather than a single pallet, giving you much more opportunity to profit.

Source: National Retail Federation, 2020.

Common Types of Liquidation Merchandise

Customer Returns

Customer returns consist of merchandise returned to the retailer including in store or online purchases. This merchandise may be returned in various forms and doesn’t always consist of faulty products. In fact, only a minority of products are returned because they don’t work.

In 2017, customers in the United States returned about $351bn worth of products to retailers. By 2020, this figure had increased to nearly $450 billion. When a retailer receives a customer return and can’t resell it on their shelves or online they bundle this merchandise onto pallets and liquidate it by the truckload.

Overstock

Overstock merchandise is brand new, never purchased stock that is surplus inventory for a retailer. This typically consists of non performing or underperforming inventory that the retailer needs to move to clear out warehouse space to make room for different products.

Source: BW Trailer

Truckload Liquidation Auctions: How They Work

Truckloads sold through live auctions will allow you to submit a bid, pitting you against other buyers who are also interested in acquiring this inventory. Auctions have an end time allowing you to bid at any point until the timer has run out. Once the auction ends, the buyer with the highest bid ‘wins’ the lot, and will then be obligated to pay for it. It is important to note that many liquidation sites will charge an additional buyer’s fee on top of the bid price. In addition, the buyer will need to assume additional costs to ship the freight which are also not included in the bid price.

Buy-Now Option

Most liquidation sites work on an auction format but some also offer a ‘Buy-Now’ option. Buy-Now listings allow you to purchase immediately without waiting for auctions to end, and without the fear that you’re going to be outbid. Buy-Now listings will rarely include the cost of shipping or the buyer’s fees (if any) in the listed price, which you will need to bear in mind.

Truckloads are sold in two formats; manifested or unmanifested.

Manifested Truckloads

Manifested truckloads include an itemized list of all the items that are in the load, often as a downloadable spreadsheet. Within this spreadsheet you will find line items for each of the products included in the load along with key information about each product such as; model numbers, upc codes, retail price, quantity, product category, manufacturer and product condition.

Manifested loads are useful for you as a reseller, as you’ll already have an idea what you’re buying which allows you to target listings that contain more of the types of products you are hoping to sell. You will also have the opportunity to research the merchandise before you attempt to bid on the truckload so you can create an informed bid.

Unmanifested Truckloads

With unmanifested truckloads you will know how many pallets (usually 26) of merchandise are included in the load without any further details on the contents or the condition of the merchandise. You will have a general idea of what categories of product are included and the retailer that is selling it but not much else to go on. Unmanifested truckloads will generally sell for less than a manifested truckload since you are basically buying the load blind increasing your risk.

Buying unmanifested loads can be a great way to lower your acquisition costs if you can stomach the risk associated with not knowing the load contents. If that doesn’t sit comfortably with you then consider paying a little more to acquire manifested loads.

Source: Walmart, 2021.

Buying from Truckload Liquidation Auctions: Top Tips

Shipping Considerations

The most important shipping consideration is distance – the further away the merchandise, the higher the costs to ship. Find truckload liquidation auctions close to you, and if working with a liquidation company with multiple distribution centers, make sure you’re buying merchandise from the one closest to you.

Some liquidation companies will allow you to pick up the merchandise yourself, provided you have a suitable commercial trailer capable of being loaded through a docking bay, without any additional cost, and if you have access to a vehicle this will be the cheapest means of receiving your purchase.

Always make sure you take into account the shipping fees before placing your order to avoid a large bill. Many websites will have on-screen calculators to get instant shipping quotes, while for others you will need to contact them for this information.

The most important thing to remember when it comes to shipping is a truckload of liquidation merchandise is a better value than shipping individual pallets.

Storage

Making sure you have adequate storage space is also something to bear in mind before purchasing truckloads of liquidation merchandise. Do you have sufficient space to receive and store 26 full pallets of inventory? If the answer is no, it’s time to seek out a storage facility of sufficient size, whether that’s by renting or buying warehouse space.

Source: The Shelf, 2020.

Assess Merchandise Condition

As you’re unlikely to be selling purely new products sourced through truckload liquidation auctions, make sure to inspect all of your merchandise thoroughly. When you resell your items, make sure you sell them advertised with the correct condition or you risk bad reviews and account termination on popular marketplaces. It may make sense to repackage, re-accessorize, repair or clean your products to increase their value.

Why Buy from Truckload Liquidation Auctions on Direct Liquidation?

Thanks to the large quantities of customer returns and overstock that Direct Liquidation sources from big name retailers, you’ll find a huge array of merchandise on our marketplace available to buy in truckload format.

We sell both manifested and unmanifested loads to meet the needs of all buyers. You’ll find new listings every day and auctions typically last 24-48 hours.

We have multiple warehouse locations nationwide, allowing you to source merchandise from the one closest to you – allowing you to cut down on shipping costs.

In Conclusion

If you’re on the lookout for merchandise you can buy in bulk, while still not breaking the bank, you need to explore buying from truckload liquidation auctions. Sourcing from truckload liquidation auctions can be a great way to acquire a steady stream of quality merchandise for your resale business at an attractive price.

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