A Guide to Buying Grocery Liquidation

In 2021, the number of grocery auctions on B-Stock grew 62% compared to the same time last year. Grocery resellers and discount store owners can purchase deeply discounted pallets of grocery liquidation on B-Stock marketplaces. Then, pass on those savings to your customers and keep them coming back for more! Buying overstock and liquidation grocery items can be good for your bottom line, but you need to know how to do it. Many of our buyers who purchase grocery lots built their business specializing in reselling grocery liquidation. In this article, we will outline the best practices and things to consider when it comes to buying and reselling liquidation grocery items. We will highlight:

• Types of items and conditions
• Benefits for buyers
• Things to consider for purchasing grocery liquidation 
• Tips to get started

What is grocery liquidation?

Sourcing grocery liquidation to resell is a little bit of a different game than some of our other categories like consumer electronics, apparel, or home and garden goods. Why? Mostly because food items have sell-by dates! 

Grocery liquidation items look like: 

• Dry goods
• Canned goods
• Snack foods
• Pet items
• Beverages
• Nutrition bars
• Seasonal foods (like candy)

The majority of the inventory you will see on our grocery marketplaces consists of shelf-stable merchandise. Mixed into the grocery category you will also find things like household cleaning supplies, personal care items, paper goods, resealable plastic bags, and other sundries for everyday use. Occasionally you will see an entire lot made up of frozen food items that will require a refrigerated truck for shipment. What you won’t find is inventory like produce, meat, or dairy. 

Browse Grocery Auctions

What condition can I expect?

Overstock

A majority of the grocery category is made up of pure overstock inventory. This is usually due to a retailer overbuying merchandise. Rather than having these items take up space sitting in a warehouse, they resell them into the secondary market. 

Customer Returns

Customer returned grocery items may sound a little strange, but it happens! And in most cases, it’s usually due to buyer’s remorse or purchasing the wrong item. Customer returned goods include unopened or open items, meaning the retail package may be opened or damaged but the internal contents are still intact. 

Shelf Pulls

Another popular condition found in grocery liquidation is shelf pulls. Whether it’s 30 days or six months before the manufacturer’s sell-by date, retailers pull this inventory off their primary shelves and move it into the secondary market.

Damaged Goods

Imperfect goods often get liquidated. This can include produce items that look bruised or dented cans. If they aren’t suitable for supermarket shelves, they will be removed.  

Benefits for grocery buyers

Product Margin

Buying liquidated grocery items offers the potential for larger profit margins than purchasing goods through a wholesaler. And in the grocery industry where margins are usually thin, by purchasing liquidation grocery, B-Stock buyers have the added advantage of larger margins. 

Direct Access

Having access to top grocery retailers is a huge win! Becoming an approved direct buyer in this industry is usually difficult. Buying through B-Stock allows you direct access without a middleman. This reduces the risk of cherry-picking (skimming the goods and taking the high quality and high-value merchandise out of the lots before getting to you), therefore, creating a great sourcing opportunity.

Reach Budget Shoppers

There will always be shoppers on a budget. Discount grocery stores—also known as salvage stores, bent-and-dent stores, grocery outlet stores, closeout grocery stores, and surplus grocery stores—are where shoppers can find groceries for cheaper than most supermarket chains. Since grocery liquidation comes directly from retailers, you can carry name-brand products at a discount! This is a strong selling point for budget shoppers. 

Things to consider

Limited Distribution Channels

It’s important to understand what your distribution channel options are in order to resell food. When reselling grocery items and sundries, there are some common channels our buyers use. For example, many resell their inventory in small discount grocery stores, convenience stores, dollar stores, flea markets, vending machines, and more. Additionally, many buyers export these goods when purchasing from retailers that allow it. However, the limited reselling channels are why many of our buyers purchasing these goods specialize in just grocery. 

On the flip side, discount groceries are an attractive option for shoppers on a budget. So don’t be discouraged! 

Sell-By Dates

Grocery buyers usually factor in a certain percentage for loss due to expired items when calculating the bidding amount, potential profits, shipping charges, etc. If items are not expired but close to the sell-by date, it’s important to think about how fast you’ll be able to receive and move the inventory. If you receive items that are past the sell-by date, you’ll be responsible for disposing of them properly. Seasoned grocery buyers usually account for a small percentage of shrinkage per liquidated lot. 

Shipping Requirements

Understand the nature of the products you’re purchasing and if any special shipping arrangements will be needed. In the case of frozen food item auction lots, a refrigerated truck will be required for shipment. Think about your location and the season. It would be fine to receive a pallet of chocolates in Detroit in the winter but during a Phoenix summer? Not so much. 

Processing Time

Unlike overstock inventory (which is brand new, retail-ready, and neatly stacked and wrapped), an auction lot of shelf pulls or customer returned goods can require more time and organization to unpack. For instance, these lots can have items packed into crates that are stacked on the pallet or sometimes goods are all together in one large Gaylord box. With grocery liquidation lots, you tend to get more individual units than in other categories with larger items. 

Best practices for buying grocery liquidation

Research Seller

Read up on who and where the inventory is coming from. Will there be special shipping requirements? Does this seller have a good reputation? Is there potential for expired or past sell-by items? Also, feel free to ask us questions! Our amazing Customer Support team is always here to help. 

Read Manifests

The manifests accompanied with each lot are the best way to know what’s included, even before you place a bid. A handful of grocery retailers will include exact dates or estimates on when items will approach their sell-by dates. This helps you understand how long you have to move the inventory and calculate any potential loss. For more information on understanding manifests, read our article Buying Basics: All About Manifests.  

Start with Small Lots

When you first start reselling groceries, it’s always good practice to start small. You’ll want to see how successful you can be, how fast you’re able to move the merchandise, and how much profit you’ll ultimately make. Take advantage of smaller lots and the opportunity to purchase pallets. You can also find smaller grocery auction lots available on B-Stock Supply.

Consider Geoproximity

Research the location of the distribution centers prior to bidding. When you’re closer to the warehouse it will be cheaper for you to receive product — saving on shipping costs. Additionally, the closer it is to you, the fewer touchpoints the lot will encounter, minimizing shipping risk such as damage, loss, spoilage, etc.  

Do Some Math

Some grocery retailers will include shrinkage in the lots while others will not. Meaning, a select few retailers will only sell 100% resaleable items. If you’re just beginning you may want to consider purchasing lots from only these retailers. Number one, you won’t have to worry about disposing of potentially expired or damaged items; and two, you won’t have to assume a certain percentage of guaranteed loss per lot. 

Check out grocery liquidation auctions today 

Begin your grocery liquidation buying journey today! Simply register and submit a valid resale certificate to the grocery marketplaces of your choice. If you’re looking for a wide selection of liquidation groceries to resell, check out Costco Liquidation Auctions, Target Auctions Liquidation, Unilever Liquidation Auctions, Meijer Liquidation Auctions, KIND Snacks Auctions, UNFI Liquidation Auctions, and Amazon Liquidation Auctions.

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