In the liquidation industry, there are a wide variety of different pallets that you can buy to fill up your inventory. How do you know which one is right for your business or which one will give you the biggest return on investment? There’s no easy answer to this question as every business is different. Today, let’s unpack case pack pallets - what they are, why they are valuable, and how you can use them in your business.
What is A Case Pack Pallet?
A case pack pallet means that the product on the pallet is in the original manufacturer packaging. Every product begins in a factory that makes these products in bulk. These manufacturers then find the most affordable and safest way to transport their goods, often across oceans, to the retailers who sell them.
That’s where a case pack comes in. Each pallet contains duplicates of the exact same item, packaged safely and uniformly to ensure nothing is broken in transportation. Case pack pallets typically make it to our warehouse directly from a distribution center or a store warehouse. You may also hear a case pack described as a master case - these are the same thing and the terms can be used interchangeably.
Case Packs vs. Returns
Case pack pallets are much different from return pallets. The first major difference is in their variety. Return loads are filled with many different items - you’ll likely only find one or two of any given product. There is never uniformity when dealing with customer returns, so you won’t find uniformity in a liquidated return load. Case packs, on the other hand, are always uniform. Each case pack will contain dozens to thousands of the exact same item.
The other major difference you’ll find between case pack and return pallets is that case packs provide you with brand new inventory while return pallets often include items that have been touched by the customer or potentially lightly used. Some packaging in return pallets may be slightly bent or dinged up from the transportation process, too. This is not the case with case packs. Case pack pallets are usually unopened, untouched, and safely protected.
The process for each of these pallets is wildly different. Imagine that…
- Every product is first made in a factory.
- It is then packaged in bulk by the manufacturer in custom packaging built to protect that product.
- These goods are shipped to distribution centers.
- These distribution centers send case packs of these products to retailers, who then open up one case at a time and place them on their shelves.
- Finally, customers come and buy those items. Most customers leave happy and keep that item…
- …but inevitably, some of those items are brought back to the store.
- Then, the retailer must either process that return back onto their shelves or funnel it through the reverse logistics cycle.
- Ultimately, all products will either end up in the hands of a happy customer, in a landfill, or in the hands of a wholesale liquidation buyer.
Case pack pallets have typically only made it to steps 3 or 4 before they make it to our warehouse. Return pallets, on the other hand, contain goods that have traveled all the way to step 8 in this process before they make it to us. That is why you find repeat, brand-new items in case packs, but you find a variety of items in a variety of conditions with returns.
Pros and Cons of Case Packs
Now that we understand what a case pack is, we must evaluate the pros and cons of buying these pallets. After years of working as bin store owners and with our experience as wholesale suppliers, here are the pros and cons of case pack pallets.
The Pros of Buying a Case Pack Pallet:
The Cons of Buying a Case Pack Pallet:
How To Use Case Packs
Case packs are useful for many businesses. We find that discount stores love them, because customers love finding brand-new items as they shop. Flea market flippers can easily make use of these goods, as they can create a booth that revolves around one item.
One group that does well with case pack pallets is e-commerce sellers. If you know your shipping and overhead costs and understand what you can sell each unit for, it’s easy to figure out what your return on investment will look like on a case pack pallet as an e-commerce seller.
Flipping these packs online is easy, as you can create one listing, pump some ad spend into it, and watch that case pack sell.
If you’re buying case packs for your bin store or discount store, patience is the key. Don’t overload your bins with the entire pack in one week. That detracts from the variety and scarcity aspect of your business. Figure out when the best time is to place this inventory out, sell enough of the product to recoup the cost of the investment, and hold onto the inventory until the time is right (not too long, though - time is money!).
Conclusion
Case pack pallets are a great investment for liquidation businesses of all kinds. We love them because they provide brand-new inventory that sellers and buyers alike can trust. Want to learn more about our case packs? Create an account with us to start the conversation.