In the vast warehouse of Follow Inc Liquidation Pallets in Jacksonville, Florida, the aisles aren’t filled with typical merchandise. Instead, the shelves are stocked with products returned from retail chains in the process of liquidation. The liquidation market has more than doubled since 2008, reaching an astounding $644 billion in 2020, according to data from the University of Colorado. A record-breaking 16.6% of all sales were returned in 2021, with an average return rate of 20.8% for online purchases. All of this points to the fact that what was once a sore point for major retailers has now become big business for liquidators, with thousands of companies thriving in this sector.
Sladjan Zeljko, owner of Follow Inc Liquidation Pallets based in Jacksonville, showed us his inventory warehouse and shared the secrets of this lucrative business that is not widely known to the public. Sladjan spent several years in the trucking industry but ultimately decided to switch to selling goods, a decision that has proven to be successful.
Dealing with pallets of merchandise from Home Depot involves purchasing returned or unused items on pallets, which are then resold. This is a popular way to generate profits through resale, says Sladjan. What is the average profit one can expect from selling items from these pallets?
Profits vary, but in many cases, products can be sold for double the purchase value of the pallet. Of course, this depends on the quality and type of merchandise obtained.
How much initial capital is needed to start this business?
It all depends on the individual; it’s possible to start with just one pallet, and pallet values range from $200 to $5000. It’s clear that a larger investment can yield greater profits. Sladjan explains that there are no special permits required for purchasing pallets from him. The only difference is if buyers possess a Tax Certificate, in which case they are exempt from paying taxes.
One of the advantages of this business, according to our interviewee, is the flexibility in working hours. That’s the beauty of this business – you’re the owner and can decide your working hours, method, and location of sales. On which markets and platforms can products be sold, and is it necessary to have storage space?
There are several options, from selling directly to end-users to various online platforms like FB Marketplace, eBay, and others. Having a large warehouse is not necessary. Many start from home, using their garage or smaller storage spaces. Storage organization depends on individual needs and the scale of operations. How much lower is the price of goods on pallets compared to regular prices?
Our pallet merchandise is sold for 60-80% lower than the retail price, making the profit potential substantial. How is the price of individual items determined when selling them from pallets?
That’s up to the seller. They analyze the market, the condition of the items, and determine the best selling price.
Whom would you recommend this type of business to?
This is something I would recommend to anyone with an entrepreneurial spirit or those looking to change their career and have some savings. I think it’s ideal for people in trucking because they already have their truck, which allows them to avoid transportation costs, especially when buying truckloads of goods. I’m confident that with a little effort and work, one can earn similar or better income than from truck driving, especially in such a challenging market.
Learn more at:
- Website: https://followliquidations.com
- Facebook: https://www.facebook.com/followinc.liquidationpallets
- Instagram: https://www.instagram.com/followinc.liquidationpallets
