The Ultimate Guide to Buying Liquidation Pallets (Amazon, Costco & More)
Liquidation pallets have become one of the hottest opportunities in the resale and eCommerce world. With big-box retailers like Amazon, Costco, and Walmart offloading massive amounts of returned or unsold inventory, smart entrepreneurs are stepping in to grab these goods at a fraction of their retail value.
In this guide, we’ll break down everything you need to know about liquidation pallets—from how they work to where to buy them and how to turn them into profit. Whether you’re a complete beginner or looking to scale your resale business, this guide is your starting point.
What Are Liquidation Pallets?
Liquidation pallets are large bundles of excess inventory sold at steep discounts by retailers. These goods can include customer returns, shelf-pulls (items taken off the shelf to make room for new stock), overstock, or even discontinued items.
Pallets can be mixed (containing various types of products) or specific to a category like electronics, home goods, fashion, or tools.
Common Retailers That Sell Liquidation Pallets:
Amazon
Costco
Target
Walmart
Home Depot
These companies typically offload pallets through third-party auction or liquidation platforms.
Why Do Companies Like Amazon and Costco Liquidate Products?
Retailers manage a high volume of inventory and returns. Rather than holding unsold goods that take up warehouse space, they sell them in bulk through liquidation.
Reasons Include:
Customer returns (even if unused)
Overproduction or seasonal overstock
Discontinued products
Packaging damage
This creates an opportunity for small businesses and resellers to buy low and sell high.
How to Buy Liquidation Pallets
Step-by-Step Process:
Choose a Reputable Platform
Look for verified and transparent platforms like:Register and Verify Your Account
Some platforms may require a resale certificate or business registration.Browse Available Pallets
Filter by product category, retailer, or price range.Review Product Manifests
These documents show what’s inside each pallet—brands, quantities, estimated retail price, and condition.Place Your Bid or Buy Now
Some platforms operate auction-style, others allow direct purchase.Arrange Shipping
Shipping can be expensive. Always factor in the cost before buying.Receive, Sort & Prepare Inventory for Resale
Pro Tips:
Start small until you learn how to assess manifests and calculate resale potential.
Avoid pallets labeled “untested returns” unless you’re experienced.
Top Liquidation Websites to Buy From
| Platform | Retailers Included | Best For |
|---|---|---|
| B-Stock | Amazon, Costco, Walmart | Auction-style pallets |
| Liquidation.com | Target, Amazon, Home Depot | High-volume buyers |
| DirectLiquidation | Best Buy, Lowe’s | Electronics and tools |
| BULQ | Assorted retailers | Beginners (curated pallets) |
| BlueLots | Various | Fixed pricing, free shipping in U.S. |
Want 20 verified liquidation sources? Download my exclusive list here.
What Is an Amazon Liquidation Store?
Amazon doesn’t directly sell liquidation pallets to consumers. Instead, it uses third-party platforms like Liquidation.com and B-Stock to offload its returned or excess inventory.
However, you might find Amazon Liquidation Stores or outlets in some cities—these are physical stores or warehouses selling Amazon returns at a steep discount.
You can also shop Amazon Warehouse Deals directly on Amazon.com.
Where to Find Costco Liquidation Auctions
Costco works with B-Stock to sell its liquidation inventory through an auction portal. You can find:
Home appliances
Electronics
Furniture
Seasonal items
Visit: Costco Liquidation Auctions on B-Stock
Bidding is competitive, so study manifests and know your profit margins before purchasing.
Tips for Making a Profit from Liquidation Pallets
Start with High-Demand Niches – Electronics, home goods, and tools perform well.
Use Online Resale Platforms – Sell on eBay, Amazon, Facebook Marketplace, Mercari, or even at flea markets.
Bundle and Upsell – Create sets or themed bundles to boost perceived value.
Repackage for Presentation – Clean, relabel, or box items for a more professional resale.
Common Mistakes Beginners Make
Buying without reading the full manifest
Ignoring shipping costs
Overbidding in auctions
Not understanding the condition codes (new, salvage, untested returns)
Failing to research resale value beforehand
FAQs
How much can you make from a liquidation pallet?
It depends on the items and how well you resell them. Margins range from 20% to 200%.
Can I return liquidation pallets?
Usually no—sales are final. Only buy from trusted platforms.
Are liquidation pallets worth it?
Yes, with the right knowledge and due diligence. Start small and scale smart.
What’s the best pallet to buy for beginners?
Consider curated pallets from BULQ or DirectLiquidation with clear manifests.
Final Thoughts: Start Your Liquidation Business Smart
Liquidation pallets offer a low-barrier entry into eCommerce and reselling. With the right strategy, they can be a consistent source of inventory at a fraction of the retail price.
✅ Want help sourcing liquidation or wholesale inventory? Email Me Here.
✅ Need a verified list of suppliers? Download my vetted list of liquidation websites.
✅ Starting a resale business? Read my beginner’s guide to wholesale sourcing.
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