Did you know that when products are returned to Amazon, they often don’t return to the original sellers? Instead, they are bundled into Amazon return pallets and sold to third-party buyers at low prices. These Amazon Return Pallets can be a lucrative opportunity for sellers aiming to buy low and sell high.
But why don’t these products go back to the sellers? Typically, returning products incur a fee for the seller. However, from their perspective, retrieving these items from Amazon’s warehouse may not always be economically viable.
As a result, these returned items take up valuable space in Amazon’s warehouse without generating revenue.
This is where the chance for profit emerges for savvy sellers. By purchasing and reselling these returned products, you can turn a tidy profit.
In this article, we’ll deep dive into the various aspects of Amazon Return Pallets and guide you on how to effectively capitalize on them for profit.
Let’s get started!
Here is a quick peek into the article:
- What are Amazon Return Pallets
- How much do Amazon Return Pallets cost
- How to buy Amazon Return Pallets
- Factors to keep in mind while purchasing Amazon Return Pallets
- Pros and cons of selling Amazon Return Pallets
- Tips for selling Amazon Return Pallets
- Final thoughts
What are Amazon Return Pallets?
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 suffer a significant loss. However, with proper research, you can reduce risks and make a profit.
How much do Amazon Return Pallets cost?
If you’re thinking about buying and selling Amazon Return Pallets, you might wonder – how much do these Amazon Return Pallets cost?
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.
How to buy Amazon Return Pallets
As an Amazon seller, you must know that all returned products 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. 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.
- Amazon Liquidation Auctions (US),
- Direct Liquidation (US and Canada),
- Liquidation.com (US),
- BULQ (US),
- Via Trading (US),
- Quicklotz (US),
- Wholesale Ninjas (US),
- BlueLots,
- And 888Lots.
Amazon Liquidation Auctions (US)
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.
More importantly, B-Stock is an affiliate of Amazon, making it extremely reliable. This exclusive partnership is beneficial to the buyer as they can gain early access to pallets and inventory deals before it’s purchased by other liquidation companies.
Here are some pros and cons of Amazon Liquidation Auction:
Pros:
Purchasing customer returns through Amazon liquidation auctions can be cheaper than sourcing new merchandise, providing an opportunity to maximize profit margins.
Merchandise bought from Amazon Liquidation auctions can often be in as-new condition, increasing the profit potential.
B-Stock functions as an Amazon Bulk Liquidations Store that enables you to buy in bulk, which can help keep costs down for businesses.
Cons:
The Amazon Liquidation Auction process can be time-consuming, requiring at least two to three business days, and larger companies may not have the bandwidth to monitor them closely.
Not all buyers prefer to participate in auctions due to the time commitment and unpredictability of the outcome.
Although buying liquidation stock can be profitable, there’s a risk of receiving damaged or unsellable items, which could lead to losses.
Direct Liquidation (US and Canada)
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.
Pros:
This platform offers a broad range of liquidation pallets, including categories like electronics, appliances, furniture, etc.
Direct Liquidation works directly with big retailers and marketplaces, ensuring the authenticity of the products.
The platform offers outstanding customer service to buyers.
Cons:
Like with any liquidation pallets purchase, there’s no guarantee of product condition.
Certain category pallets have minimal quantity restrictions, preventing small-scale buyers from purchasing.
Depending on the item’s condition, warranty coverage for purchased products may be restricted or non-existent.
Liquidation.com (US)
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 it 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.
Pros:
This Amazon liquidation store offers great deals on returns pallets, so you can potentially get items often at a lower cost than the original price.
You might come across valuable and resellable items in the pallets, allowing you to make some good money.
Cons:
Depending on the product or seller, you may or may not get any warranty coverage or guarantee for the condition or functionality of the items you buy.
Since Liquidation.com attracts a lot of buyers, you’ll face tough competition when buying an item, or the price will be elevated in the auction.
BULQ (US)
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.
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.
Pros:
BULQ offers a wide range of products from big-box store retailers in categories like apparel, home and garden, toys and baby, electronics, and more.
New inventory arrives three times daily, which provides continuous opportunities for sellers.
Bulq.com is an Amazon liquidation store that is specifically designed for resellers, offering bulk purchasing options, discounted pricing, and access to a community of resellers.
Cons:
As with any liquidation platform, there is a risk of buying damaged or defective products unsuitable for reselling.
While manifest information is provided, buyers may have limited ability to customize or choose specific items within a pallet.
Buyers must arrange the shipping and handling costs, which can vary based on location and pallet size.
888Lots
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.
Pros:
Offers more than 100,000 brand-new products across over 30 categories.
Offers fixed-priced pallets. Buyers can negotiate the price of each with their sales representative.
Each pallet contains a detailed description of the products, including ASIN numbers, UPCs, descriptions, reviews, sales rank, and a downloadable manifest.
Cons:
There’s no guarantee of the product condition you’ll get after purchasing the product.
Buyers have to bear the shipping and handling costs after purchasing the pallets.
Apart from these top liquidation platforms, there are other platforms out there that sell Amazon Return Pallets, such as:
- Via Trading (US),
- Quicklotz (US),
- Wholesale Ninjas (US), and
- BlueLots.
Factors to keep in mind while purchasing Amazon Return Pallets
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:
Compare liquidation platforms
Typically, you can buy pallets for cheap directly from Amazon or from its official b2b platform Amazon Liquidation Auctions. The more you buy from these platforms, the cheaper the costs.
However, you won’t always be able to bag the best pallets directly from Amazon as the auctions are highly competitive and liquidation companies with more resources will usually beat you. Therefore, head over to top liquidation pallet companies and check out their catalog.
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.
Start with a small purchase
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.
Be cautious with electronics
If you’re new to buying Amazon liquidation pallets, avoid purchasing pallets of used electronic items. There is a high chance that these Amazon returns may not work, and if you lack the expertise to fix them, you could end up with a total loss.
Refurbish for profit
While reselling products directly would be the best option starting out. Seasoned resellers use the process of retail arbitration to rake in profits.
They buy Amazon liquidation pallets, refurbish the merchandise, and resell the product at higher prices on various marketplaces or their ecommerce store.
However, this approach is not recommended to those just jumping into the world of Amazon return pallets. Ideally, get some experience, master the process, and figure out a system to refurbish the products before executing this method.
Avoid certain categories
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 Amazon returns with multiple parts and accessories, as there’s a higher chance of missing or damaged components.
Look for simplicity
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).
Watch out for shipping costs
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 surprises.
Pros and cons of selling Amazon Return Pallets
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:
Benefits:
Low costs: Amazon Return Pallets reduce the cost of sourcing. These pallets are available at discounted prices, meaning you can start your business with as little as a few hundred dollars.
Easy reselling: Selling Amazon Return Pallets provides you with various platforms to resell your products. Whether it’s through e-commerce sites, garage sales, or social media, you have flexibility in finding potential buyers.
Potential for higher profit margins: Since Amazon Return Pallets are sold at discounted prices, there is a potential for higher profit margins when selling. With careful selection and strategic selling, you can achieve significant profits even with a small initial investment.
Drawbacks:
No product description: Some liquidation companies do not provide any information about the products inside the pallets. So, you can end up purchasing pallets containing empty boxes or damaged goods.
Limited opportunity for growth: There’s no guarantee of the type and condition of products you can get on Amazon Return Pallet. It can hinder your ability to grow and scale your business long-term.
Unsellable items: In Amazon Return Pallets, you may occasionally come across products that are too damaged to resell. This can lead to losses.
Tips for selling Amazon Return Pallets
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 2024. Here are some of them:
Compare products on different marketplaces
Before buying a liquidation pallet, compare different liquidation companies/Amazon return stores, 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.
Sort and categorize items
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.
Bundle different products
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.
Price your products right
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.
Choose Amazon manifested pallets over Amazon mystery boxes
Amazon mystery pallets are cheaper. While buying these pallets would make for a great YouTube video, it does come with a high 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 goal is reselling, always choose a Manifested pallet.
Final thoughts
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.
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!
Additional read:
What is Amazon Premium A+ content?
How do I Start Selling on Amazon in 2023?
How does Amazon Marketing Cloud work?
A Joint Analysis by Payoneer and SellerApp
Related Posts:
Firefighting Negative Reviews on Amazon: A Seller’s Guide
How to Rank Your Products for Amazon A10 Algorithm
Amazon Advertising Updates – August 2020
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Related posts:
- Firefighting Negative Reviews on Amazon: A Seller’s Guide
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- Amazon Advertising Updates – August 2020
Post Written by:
Arishekar N Arishekar N, Sr. Director of Marketing & Growth at SellerApp, is a specialist in digital marketing, in addition to website keyword optimization for search engines. His areas of expertise include enhancing the organic & paid ranking of webpages on search engines with innovative SEO & SEM strategies and online promotions. Ask anything or share your feedback Email: arishekar.n@sellerapp.com
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