01The Cost Nobody Talks About
Scroll through any liquidation reselling group on Facebook or Reddit and you'll see endless discussion about which platforms have the best deals, which categories are most profitable, and what recovery rates to expect. What you rarely see discussed is the cost that often determines whether a deal is profitable or not: freight.
For most pallet resellers — especially those buying one to five pallets at a time — freight and accessorial charges represent 25–50% of their total landed cost. That's not a rounding error. That's the difference between a 30% profit margin and a 5% loss.
Yet most new resellers treat freight as a fixed, unavoidable expense. They get a quote, wince, pay it, and move on. They don't realize that freight costs are highly variable and that small changes in how you ship can save hundreds of dollars per pallet.
02How LTL Freight Pricing Actually Works
Understanding how carriers price LTL freight is the first step to reducing your costs. LTL pricing is based on four factors:
1. Freight Class (50–500): This is determined by your shipment's density (weight ÷ volume). Denser shipments get lower classes and cheaper rates. A 500-lb pallet on a standard 48×40×48 footprint is about 4.5 lbs/ft³, which falls in Class 175. A 300-lb pallet of the same size is about 2.7 lbs/ft³ — Class 250, which costs significantly more per pound.
2. Weight: Carriers charge per hundredweight (CWT). Heavier shipments cost more in absolute terms but less per pound. There are also weight break points where the per-pound rate drops — sometimes shipping a heavier pallet is actually cheaper than a lighter one.
3. Distance: Longer hauls cost more, but the relationship isn't linear. Shipping 1,000 miles doesn't cost twice as much as shipping 500 miles. The per-mile rate decreases with distance because the fixed costs (pickup, delivery, handling) are spread over more miles.
4. Lane: Some routes are cheaper than others based on carrier network density. Major corridors (LA→Dallas, Chicago→Atlanta) tend to be cheaper than rural or less-trafficked routes.
03Accessorials: The Fees That Add Up Fast
Base freight is just the starting point. Accessorial charges are where costs spiral for home-based resellers. Here's what each one costs and when you need it:
| Accessorial | Typical Cost | When It Applies |
|---|---|---|
| Liftgate Pickup | $75–$150 | Origin doesn't have a loading dock or forklift |
| Liftgate Delivery | $75–$150 | You don't have a loading dock or forklift |
| Residential Delivery | $75–$125 | Delivery to a home address |
| Inside Delivery | $100–$200 | Driver carries freight past the threshold |
| Delivery Appointment | $25–$75 | You need a specific delivery time window |
| Limited Access | $75–$150 | Storage units, construction sites, farms |
A typical home-based reseller needs liftgate delivery ($95) and residential delivery ($85) on every single shipment. That's $180 in accessorials per pallet, every time. On a $300 base freight charge, accessorials increase your shipping cost by 60%.
Over 50 pallets a year, that's $9,000 in accessorial charges alone. That's money coming directly out of your profit margin.
04Seven Ways to Reduce Your Freight Costs
Freight costs aren't fixed. Here are proven strategies that experienced resellers use to cut their shipping expenses:
1. Buy from nearby warehouses. Distance is a major cost driver. Filter listings by origin location and prioritize warehouses within 300–500 miles of your location. The freight savings often outweigh a slightly higher bid price.
2. Eliminate accessorials. Rent a small commercial space or partner with someone who has a loading dock. This eliminates liftgate ($95) and residential delivery ($85) charges on every shipment — saving $180 per pallet. Even a $200/month shared warehouse space pays for itself after two pallets.
3. Consolidate shipments. If you're buying multiple pallets from the same warehouse, ship them together. Two pallets on one shipment cost far less than two separate shipments. Some platforms let you combine wins from the same location.
4. Use freight terminal pickup. Instead of paying for delivery, have the carrier hold your shipment at their local terminal and pick it up yourself with a truck or trailer. This eliminates delivery accessorials entirely.
5. Negotiate with freight brokers. If you're shipping regularly, build a relationship with a freight broker. Volume shippers get better rates. Even 3–5 shipments per month can qualify you for discounted pricing.
6. Consider full truckload for volume. If you're buying 10+ pallets, FTL (Full Truckload) pricing is often cheaper per pallet than LTL. A 24-pallet truckload at $2,500 is about $104 per pallet — compared to $300+ per pallet for individual LTL shipments.
7. Factor freight into your bid. This is the most important one. Don't calculate freight after you win — calculate it before you bid. Subtract your estimated freight from your maximum spend to find your true maximum bid. Our Freight Calculator makes this a 30-second step.
05The Bottom Line
Freight is not a minor expense you can ignore. For single-pallet buyers, it's often the largest cost after the pallet itself. For some deals — especially heavy pallets shipping long distances — freight costs more than the merchandise.
The resellers who build sustainable businesses are the ones who treat freight as a variable they can control, not a fixed cost they have to accept. They buy closer to home, eliminate accessorials, consolidate shipments, and most importantly — they calculate freight before they bid, not after.
Use our free Freight Calculator to estimate your shipping costs before your next bid. Enter your ZIP codes, pallet dimensions, and weight, toggle the accessorials you need, and get an instant estimate. Then plug those numbers into the Deal Analyzer to see if the deal actually works. Thirty seconds of math can save you hundreds of dollars.