FAQs·5 min read

Frequently Asked Questions About Liquidation Reselling

The questions we hear from every new reseller.

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FAQs

The short answer

Direct answers to the questions we hear most often about liquidation reselling.

Is liquidation reselling still profitable in 2026?

Yes, but the margin has compressed since 2020. Winning resellers are more disciplined about which pallets they buy, and use tools like PalletIQ to avoid overpaying.

Do I need a business license?

Requirements vary by state. Most marketplaces require a reseller certificate (also called a resale certificate or sales tax permit) to buy tax-exempt. Get one before you place your first order.

How much cash do I need to start?

Realistically, $500-$1,000 to cover your first small pallet plus freight, storage, and shipping supplies. Do not deploy your emergency fund.

What is a "customer return" pallet actually like?

Expect 60-70% working or resellable, 20-30% needing repair or cosmetic touch-up, and 5-15% unsellable or salvage. Real numbers depend on retailer and category.

Which category is best to start with?

Home and kitchen items are forgiving: predictable comps, easy to ship, low technical knowledge required. Avoid electronics on your first pallet, testing them takes real skill.