How to Start a Pallet Reselling Business: A Step-by-Step Plan

Pallet reselling is a real small business, with real costs and real paperwork. Treat it that way from the start and it is far more likely to work. Here is a practical plan.

Step 1: Decide your model

• Online reseller: list individual items on marketplaces.
• Local seller: flea markets, swap meets, garage-style sales, local marketplaces.
• Bin store: a physical store where prices drop each day.
• Wholesale re-seller: buy pallets and resell smaller lots.

Your model decides which categories, conditions and quantities make sense.

Step 2: Set up the business basics

The SBA's guide walks through the steps. In short:

• Choose a business structure (sole proprietorship, LLC, etc.).
• Register your business name if your state or county requires it.
• Get an EIN from the IRS if you need one (it is free from IRS.gov — never pay a third party for it).
• Apply for your state's sales tax permit / resale certificate.
• Open a separate bank account for business money.

Step 3: Prepare your space

A pallet arrives at around four feet square and can weigh hundreds of pounds. You will need:

• A garage, storage unit or warehouse corner.
• Shelving, bins and labels.
• A table for sorting and photographing.
• Basic testing tools: power strip, batteries, multimeter for electronics.
• Packing supplies if you ship.

Step 4: Buy your first pallet carefully

• Pick one category you understand.
• Prefer new/overstock or shelf pulls for pallet number one.
• Calculate total landed cost including freight.
• Buy from a verified seller (see our scam-spotting guide).

Step 5: Sort into four piles

• Ready to sell.
• Needs cleaning or minor work.
• Parts / bundle / bin.
• Unsellable — dispose or recycle.

Record everything in a spreadsheet: item, condition, expected price, where listed, sold price, date sold.

Step 6: Safety check before listing

Search CPSC recalls for children's items and anything with batteries, heaters or helmets. Remove expired consumables. Recalled products cannot legally be resold.

Step 7: Price from sold data

Look at what items actually sold for recently, in similar condition, on the channel you use. Price a little below the market for quick sales on your first pallet; speed teaches you more than squeezing every dollar.

Step 8: Write honest listings

• Describe condition accurately — "open box, tested working, missing remote".
• Take clear photos of the actual item, including flaws.
• Honest listings mean fewer returns and better feedback.

Step 9: Track, reinvest, repeat

After each pallet, calculate:

• Total cost vs. total sales.
• Sell-through after 30, 60 and 90 days.
• Hours spent.
• Which item types sold best.

Reinvest in what worked. Drop what did not.

Your first 90 days

• Days 1–14: register, set up space, buy one pallet.
• Days 15–45: sort, test, list everything, start selling.
• Days 46–75: review numbers, buy pallet two in the best-performing category.
• Days 76–90: build routines, consider a second sales channel.

Taxes and records

Income from reselling is generally taxable. The IRS small business center explains your obligations. Keep every pallet invoice, freight bill, fee statement and receipt.

How we can help

We sell to first-time buyers and growing resellers alike. For bulk or repeat orders, our Wholesale page lets you request a quote, or call us at +1 (612) 203-5917.