Wholesale Liquidation Terminology

Wholesale Liquidation

The wholesale liquidation industry has terminology that is difficult to understand for newbies. Therefore, we wrote down common terms and explanations below:

Shipping Wholesale Liquidation

Merchandize Liquidators sells wholesale liquidation in different kinds of packaging. Below is liquidation packaging terminology:

MASTER CASE

Master case refers to 100% brand new factory sealed merchandise that still in its original packaging.

PALLET

A pallet is a wooden structure used to support goods while in transit or being moved. Standard pallets are 40″ x 48″ and typically moved using forklifts or pallet jacks.

SKID

A skid is an alternative term used to refer to a pallet. Specifically a skid is a pallet with no bottom decks.

CASE PACK

Case pack generally refers master case goods.

GAYLORD

Typically, a gaylord is a large open cardboard box placed on top of a pallet and used to store or move large quantities or smaller loose items. Gaylords come in various sizes but are typically 40″ x 48″ x 48″.

Decoding Liquidation Shipping

Sometimes, the biggest challenge with wholesale customers is shipping. There is nothing worse than selling a truckload and not picking it up.

BILL OF LADING

A bill of lading, otherwise known as a BOL, is shipping paperwork that accompanies a delivery. You will be asked to sign the BOL upon receipt of a shipment.

DIRECT SHIPMENT

Direct shipment refers to items that are shipped to the customer directly from a department store facility.

DOUBLE STACKED

Double stacked refers to when one pallet is put on top of another pallet to increase the number that can be put in a truck. Not all pallets can be double stacked, but for those that can be, it can provide an extremely efficient way to ship a larger quantity of goods in one shipment.

DROP SHIPPING

Drop shipping is when an order is placed with a vendor and shipped directly to the end consumer. Many times, brokers are drop shippers since they do not own the liquidation merchandise. These brokers receive orders from their customers, then place a drop-ship order with a liquidator. In order to protect the broker, these dropship orders are typically shipped “blind,” meaning with no trace of the vendor’s name or address. Merchandize Liquidators is not a broker and fully owns all liquidation merchandise.

EXWORKS

Exworks (EXW) is an incoterm rule which places minimum responsibility on the seller, who merely must make the goods available, suitably packaged, at the specified place, usually the seller’s factory or depot. The buyer is responsible for: (a) loading the goods onto a vehicle; (b) all export procedures; (c) onward transport and for all costs arising after collection of the goods. Although the seller is not obliged to load the goods, if the seller does so, this is at the buyer’s risk.

FOB

The acronym FOB, which stands for “Free On Board” or “Freight On Board” is a shipping term used to indicate who is responsible for paying transportation charges. It is the location where ownership of the merchandise transfers from seller to buyer. When this term is used in the liquidation industry, the buyer pays the transportation costs from the warehouse or vendor to the specified destination. FOB terms of sale establish which party (vendor or retailer) will be liable for the transportation costs, which party is in control of the movement of the goods, and when (date/time) the title passes to the buyer. Please note that FOB means something different for international shipping incoterms. FOB and Exorks are interchangeable in the USA.

HAND STACKED

Hand stacked refers to way of loading a truck or container. Typically used to maximize space where items are loaded manually by hand without any pallets. Not ideal for all types of merchandise but for certain items it can be extremely efficient way to consolidate merchandise for shipping.

LIFT-GATE

A platform at the rear of a truck that is used to lower pallets to the ground/curb. A liftgate is needed when you do not have a loading dock or forklift available at the delivery location.

LOADING DOCK

A platform that usually matches the height of the floor of a truck, that allows trucks to back up to the dock and permits easy and fast loading and unloading of the truck.

LTL

Stands for “Less than Load” and is the shipping term to describe shipping less than a Full Truckload of goods. Carriers limit the number of pallets per LTL Shipment. LTL Shipments are typically 1 to 6 Pallets. Orders over 6 Pallets may need to be consolidated into 6 pallets, shipped with 2 LTL Shipments or Shipped as a full load.

LCL

Less than Container Load (an ocean shipment of less than a full container of pallets).

 

Shipping liquidation pallets is tricky

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