If you are an Amazon seller, you already know Amazon’s strict 30 days “no question asked” return policy.
It means consumers can return any product in 30 days. But that also means a significant return rate for any products sold on Amazon.
Amazon says the average return rate is around 10% for most merchandise on the platform, but more often than not, it depends on what is being sold.
For example, the return rate for books and media is 5-7%, home, and kitchen goods are 8-10%, consumer electronic item is 25-30%, and the return rate for clothing items can go as high as 40%.
Usually, Amazon sends the returned products back to the seller for a fee, but from a seller’s perspective, it doesn’t make economic sense to pay Amazon to get the product back to their warehouse.
Therefore, all these products sit in Amazon’s warehouse, taking up space without generating any value.
You can make a lot of money as a seller by buying and reselling all these returned products.
And this is where Amazon Return Pallets come in.
In this article, we’ll discuss what Amazon Return Pallets are and how you can buy and sell them for a profit.
Let’s jump into it!
Here is a quick peek into the article:
Amazon Return Pallets or Amazon liquidation pallets are large wooden crates that Amazon uses to sell returned products in bulk. Buyers of these pallets can choose to keep the products useful to them and refurbish others to resell and make a profit.
These Amazon liquidation pallets can contain various products, like electronics, clothes, books, furniture, and more. Most of the time, these products can be used, damaged, defective, or unwanted by the customer.
Amazon organizes these products into different pallets and sells them to large liquidation companies or individual customers at discounted prices.
Note: Buying Amazon Return Pallets can be profitable. But there’s no guarantee about what you’ll get in the box. You may find items that are brand new, broken, spare parts of items, or even empty-boxed.
That’s right! If you don’t examine the pallets before purchasing, you might make a fool of yourself. However, with proper research, you can reduce risks and make a profit.
Now if you’re thinking about buying and selling Amazon Return Pallets, you might wonder – how much these Amazon Return Pallets costs.
Amazon Return Pallets typically cost between $300 and $400, but the price can vary based on size and content. For example, a large pallet full of electronic items can cost more than $1,000, whereas a palette full of essential items can only cost between $100-$500.
Apart from the cost of pallets, you also have to consider shipping and refurbishment costs, as they can add up to the cost.
As an Amazon seller, you must know that all returned products customers send don’t just vanish into thin air.
Amazon provides a liquidation program where sellers can resell the customer-returned products in the auction to make way for new stocks in the warehouse.
The sale generally takes place after the holiday sales, usually when the customer returns are pretty high.
You can buy Amazon Return Pallets directly through this program or from third-party liquidation companies.
Now you might be scratching your head, thinking – where can I find these third-party companies that sell Amazon pallets near me?
Well, here we’ve listed some liquidation companies where you can buy Amazon Return Pallets in 2023.
In 2018, Amazon collaborated with B-Stock to introduce Amazon Liquidation Auctions, which allows third-party US sellers to bid on return pallets, ranging from books, apparel, home goods, electronics, and footwear.
To participate in these auctions, sellers must register with B-Stock and submit a valid resale certificate.
Here are some pros and cons of Amazon Liquidation Auction:
Recommended read: What is the registration process for Walmart plus.
Direct Liquidation is a liquidation marketplace that partners with marketplaces like Amazon, Target, and Walmart to sell returned pallets in online auctions.
The best part of this platform is you can narrow down the search by store and brand. For example, if you want to find return pallets only from Amazon, then you can filter by selecting that specific option.
This platform only sells pallets based on auction, so you have to sign up and place bids to secure a pallet you are interested in.
Similar to Direct Liquation, Liquidation.com also sells return pallets from Amazon and other marketplaces. This platform usually sells electronics, household appliances, computers, and industrial and vehicle spare parts.
The price usually starts from $100 but can increase during the auction.
Non-US customers need to pay via wire transfer. And if the purchase value is above $5,000, then a wire transfer is mandatory for both US and non-US buyers.
BULQ is another liquidation company headquartered in the United States that lists new return pallets for sale three times every day. The pricing of these items varies depending on the seller and product category. Some prices are fixed, and others are sold through a 48-hour auction.
You can easily browse the clearance section without login, but to purchase, you must register on the platform and provide resale certification during the transaction.
Additional guide: What are Amazon Ads Certifications?
BULQ also provides shipping services for addresses within the United States; in some cases, a flat shipping fee of $30 is applied.
Usually, the shipping cost changes based on factors such as weight, palette size, and delivery address.
888Lots is one of the oldest liquidation companies in the USA. They offer the option to buy products in bulk or individual items at lower prices.
Buyers can also customize the lots and pick the items they need.
To buy from the platform, buyers need to provide a valid resale certificate that allows them to sell to US customers.
Apart from these top liquidation platforms, there are other platforms out there that sell Amazon Return Pallets, such as:
Amazon Return Pallets are a profitable way to resell products, as long as you know what to look for and how to avoid potential pitfalls.
Here are some things you should consider when buying Amazon Return Pallets:
With numerous liquidation companies in the market, it’s crucial to research and compare different options. Look for companies that offer returns pallets at lower costs, as this can help maximize your profit margins.
Before diving into large investments, make a small initial purchase. It will allow you to better gauge the buying experience and understand the process. Avoid the temptation to buy expensive name-brand goods right away, as it can be risky.
If you’re new to buying Amazon liquidation pallets, avoid purchasing pallets of used electronic items. There is a high chance that these items may not work, and if you lack the expertise to fix them, you could end up with a total loss.
Stay away from certain categories of products to minimize risks. For example, avoid baby items for safety concerns. Additionally, avoid cooking products, as they can be difficult to resell.
Note: Avoid any products with multiple parts and accessories, as there’s a higher chance of missing or damaged components.
Opt for simpler items with a higher chance of working properly and being easy to resell. For example, exercise dumbbells can be a good option. Also, name-brand goods are desirable, but ensure the probability of defects is low (again, avoid electronics in this case).
Before purchasing an Amazon return pallet or any other type of liquidation pallet, be mindful of the shipping expenses. Some liquidation companies charge for shipping, which could potentially exceed the amount you paid for the goods. Always check the freight costs beforehand to avoid unexpected surprises.
If you’re considering selling Amazon Return Pallets, you should weigh the benefits and drawbacks before diving into this venture. Here are some of them:
Now you’ve learned the pros and cons of selling Amazon Return Pallets and want to get your hands on them!
But wait for a moment!
There are still some tips you need to keep in mind before selling Amazon Return Pallets in 2023. Here are some of them:
Before buying a liquidation pallet, compare different liquidation companies, and find pallets at a lower cost. If you’re going to an offline auction, try to inspect the pallet before purchasing. This will allow you to better judge each pallet and negotiate the best price.
Ensure you consider shipping costs in your calculations, as they can eat into your potential profits.
After receiving your pallet, inspect and categorize the products. Assess the packaging and condition of the products. See if the products are authentic or come with a manufacturer’s warranty.
Many times pallets come with missing or faulty parts. Replacing or repairing the parts can make the products sellable and generate a higher resale value.
Refurbishing and repairing products is not enough. Bundling multiple complementary products is also a great way to increase the average order value of the products.
For example, if you want to sell some product from a pallet of computer components, It’s better to assemble a CPU with a mix of new and refurbished products and sell that at a premium.
Browse various online markets to understand the current price of the product. You’ll need to set your selling price lower than the new items. Don’t forget to factor in other expenses, and always keep an eye on your potential profits.
Amazon mystery pallets are cheaper but come with a higher risk, as you don’t know exactly what you’re getting. On the other hand, Manifested pallets are more expensive but provide a detailed description of the contents, including item names, quantities, product descriptions, and suggested retail values. So if your end goal is reselling, always choose a Manifested pallet.
Selling Amazon Return Pallets can indeed be profitable, but it’s important to remember that it also comes with its share of risks.
If you’re lucky, you may get a pallet full of items prime for reselling, or you may get stuck with a pallet full of broken and defective items.
On top of that, selling Amazon Return Pallets at profits requires careful inspection, sorting, cataloging, strategic pricing, and effective marketing.
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If you are the kind of seller who loves challenges, reselling liquidation items can be an exciting venture for you.
Now that you know how to sell Amazon Return Pallets, it’s time to roll up your sleeves and get started.
Do you have any more questions regarding Amazon Return Pallets? Let us know in the comments below!