Minimizing Shipping Costs

Due to the nature of Liquidation Goods & their relative low cost – at times shipping can become prohibitive. There are various methods you can use to reduce the relative cost of shipping:

Option 1 – Ship Multiple Pallets

SHIPPING MULTIPLE PALLETS IS OFTEN CHEAPER THAN SHIPPING JUST ONE.

Much of the initial cost of shipping covers the pick-up, the delivery and the administrative paperwork. These are generally fixed costs and shipping one pallet will always be relatively more expensive than shipping multiple pallets. After that initial charge, the cost for the second or third pallet only goes up marginally. This is especially true when shipping to residential addresses and/or when shipping with a lift-gate since both are relatively fixed flat charges.

Using the Example you can compare side by side the difference in the landed cost (total cost including delivery) of the goods when Purchasing 1 Pallet for $750/pallet as opposed to 3 Pallets. In the example below Buyer could purchase:

• 1 pallet for $750 + $145 shipping for a total landed cost of $895 OR
• 3 Pallets for $750/pallet + $275 Shipping for a total landed cost per pallet of $841.67 ($53.33 cheaper per pallet or 5.96% Cheaper).

Option 2 – Shipping to a Freight Terminal Can Save you the Residential Charges

Although it can be much more convenient to receive the merchandise directly at your door, it does cost a little bit more and there are options to avoid those additional residential charges. One way to avoid these additional residential/liftgate charges is to go pick up your pallets at a local freight terminal. There is a freight terminal in or near every major city, and you can rent a U-Haul or drive over with a pickup truck to get the merchandise from the terminal to save yourself some money. There are some things to consider to determine if this will be worth it for you:

• The distance of the terminal from your home
• The rental cost of a U-Haul/Pick-Up/Van if you do not have use of a track or van or trailer
• The fuel cost of driving to the terminal and back
• The time it will take you

Often times, the residential surcharge is very reasonable once you factor in the time and out-of-pocket expenses you would incur by picking up the pallet from the terminal yourself.

Option 3 – Adding Case Packs Spreads Shipping Over More Merchandise

If you only have space for 1 or 2 pallets but the shipping costs are rather elevated, you can opt to add a couple of case-packed items to your order. Case-packed items are items which when ordered alone, are typically shipped by Courier such as Fedex/UPS. Case packs are sold in smaller lots, packed inside small boxes that are relatively low weight and can be consolidated with most pallet orders and shipped at little to no additional charge.

In the Example below Customer initially is purchasing 1 pallet of Water Dispensers initially for a total of $540 on Merchandise + $220.90 shipping (almost 30% of total $ investment goes in shipping). When adding 1 or more case packs (2 in this case) Customers Shipping Cost only increases by $9.91 so now customer spends $975 on Merchandise + $230.90 on Shipping – result being that total $ spend on shipping is reduced to only 20% of total investment).