When I first ventured into the world of flipping liquidation pallets, my initial thought was to resell them on platforms like Facebook Marketplace or eBay. Little did I know that there was a way to make just as much money, if not more, by leveraging Amazon's infrastructure and letting them do all the heavy lifting. In this blog post, I'll share my personal journey and provide you with a complete blueprint on how to find liquidation pallets on Amazon and turn them into profitable ventures without ever handling the products or shipping them yourself.
Discovering the Power of Liquidation Pallets on Amazon:
Traditionally, people associate flipping liquidation pallets with reselling on consumer-to-consumer platforms. However, I learned that by sourcing liquidation pallets specifically for Amazon, I could tap into a vast customer base and let Amazon handle the logistics, customer service, and fulfillment. This approach not only saved me time and effort but also opened up the potential for significant profits.
Identifying Liquidation Companies with Product Catalogs:
To start, it's crucial to find liquidation companies that provide product catalogs. These catalogs contain organized spreadsheets of the products available on each pallet, complete with product identifiers such as SKUs, ASINs, or UPCs. These identifiers make it easy to compare the products in the pallets to those currently selling on Amazon, helping you determine which pallets are worth buying. One of my favorite suppliers for this purpose is 888 Lots, as they offer fully itemized lists of their products and provide an easy-to-use website interface to browse through their extensive selection.
Streamlining the Process with Scan Unlimited:
Once you have the product list from a pallet, you can use a software called Scan Unlimited to automatically compare it to the millions of products currently selling on Amazon. Scan Unlimited quickly identifies which products in the pallet are profitable and provides valuable insights into their sales performance. This tool helps you make informed decisions about whether or not to purchase a pallet and ensures that you maximize your profitability. You can try Scan Unlimited for free here (use promo code GUERRA for 50% off if you want to upgrade).
Flexibility and Focus on Profitability:
Not every product in a liquidation pallet will be profitable, and that's perfectly fine. You only need a few profitable products to make money. Remember, even a single profitable item can contribute to your overall success. Therefore, be flexible in your approach and carefully evaluate each product's potential before making a purchase.
Ordering and Shipping to Amazon FBA:
Once you've identified a profitable pallet, you have two options: order it to yourself first or ship it directly to Amazon FBA (Fulfillment by Amazon). Ordering it to yourself allows you to cut costs by avoiding Amazon's fees for destroying unsellable products and reduce shipping expenses. You can then list the profitable items on Amazon and explore other platforms to sell the remaining products, further increasing your profit margins. However, this route requires more hands-on work, as you'll need to receive the pallet, sort the products, and ship only the profitable ones to Amazon FBA.
Using a Repricer for Competitive Pricing:
To maximize your sales and stay competitive on Amazon, it's essential to utilize a repricer. There are various repricers available, but for beginners, the free repricer in Seller Central does a solid job. Set your prices to match the Buy Box price if available or the lowest price if there's no Buy Box. Additionally, be mindful of the cost at which you sourced the products from the liquidation website, as this information helps you set a minimum price to avoid selling at a loss.
Reseller's Permit:
Before signing up with liquidation companies, it's important to note that many require a reseller's permit. Obtaining a reseller's permit is relatively straightforward, and you can learn more about how you can get one here.
Flipping liquidation pallets on Amazon can be a profitable venture, and I hope this blueprint based on my own experience helps you kickstart your reselling business. By leveraging the power of Amazon's platform and utilizing tools like Scan Unlimited and a repricer, you can make money without ever touching a product or managing shipping logistics. Embrace the opportunity, research carefully, and adapt as you discover profitable products within the liquidation pallets. Best of luck on your flipping journey!
If you'd like to watch the complete video explanation of this, check it out below.
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FAQs
How Much Can You Expect to Make with Liquidation Pallets? Selling liquidation pallets can be quite profitable, especially when you work with big retail brands in the US. Selling products from pallets gives you a profit margin around 30-40% per sale.
Can you make a living off liquidation pallets? ›
Flexibility and Focus on Profitability:
Not every product in a liquidation pallet will be profitable, and that's perfectly fine. You only need a few profitable products to make money. Remember, even a single profitable item can contribute to your overall success.
Can you make money from Amazon pallets? ›
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.
Is Amazon liquidation pallets a real thing? ›
Amazon Bulk Liquidations Store sells palletized lots of Amazon or third-party seller items. A lot is defined as a group of items offered for sale as a single listing.
How profitable is flipping items? ›
Doing ten to twenty hours a week of flipping, is generally enough to earn you a good side-income cash flow of anywhere from $500 to $3,000 per month or more. Time is not the most important factor. Yes it's required, but the three things I mentioned earlier are the main factors that will drive your profits up.
How much is an Amazon return pallet? ›
How Much Does Amazon Return Pallets Cost Typically? Amazon return pallets generally cost between $300 and $400. However, prices can fluctuate above or below this range depending on the size and contents of the package. The specific types of items included significantly influence the total cost.
Are liquidation pallets worth buying? ›
Overall, buying wholesale liquidation pallets is a great opportunity for small businesses to save money and get a variety of products for their store. It's definitely worth considering if you're looking for ways to grow your business and provide a wide range of products for your customers.
What is a Walmart pallet flipper? ›
Pallet flipping is a popular “buy low, sell high” side hustle. When you return a product to Costco, Amazon, or Walmart, it doesn't always go back to the shelves. In most cases, that product ends up at a local liquidator that resells it to side hustlers, who then flip it for profit.
How do you make money off empty pallets? ›
Most businesses sell their pallets on Repalletize. It is free to signup for Repalletize and sell pallets. You can start by just selling one size pallet or you can start with selling multiple sizes of pallets. Some of the harder to find sizes can sell for higher prices and you can make more money.
How to make money in liquidation? ›
Retail liquidation involves purchasing excess inventory, returned items, or assets from companies at a reduced price and reselling them for a profit. This business model thrives on the discounted prices of liquidated goods, allowing for substantial profit margins.
Amazon sells its liquidation pallets through several platforms, including its own Amazon Liquidation Auctions. Additionally, there are other third-party liquidation websites like Direct Liquidation, BULQ, and Liquidation.com that partner with Amazon to sell these pallets.
What are Amazon return stores called? ›
An Amazon Liquidation Bin Store is a platform that allows businesses to purchase excess, overstocked, or returned Amazon merchandise at a discount.
Is buying liquidation pallets a good side hustle? ›
Liquidation pallet flipping in the realm of tools and home improvement products offers a promising avenue for profit. Whether you choose to start as a side hustle or dive in full-time, understanding the nuances of our inventory and the market is key.
Where do Amazon return pallets come from? ›
Amazon liquidation stores — also called Amazon Bin Stores — are locations where businesses can purchase items that are overstocked or returned from Amazon on pallets. Once these large businesses buy the bulk products, they are then resold to individuals.
Does Amazon have a liquidation? ›
A Wide Range of Inventory
Amazon liquidation stores typically offer a diverse range of products, including electronics, home goods, clothing, and more. The inventory is constantly changing, making each visit a new adventure for shoppers.
Can you make money selling pallets? ›
Though it may seem random, starting a business picking up and selling used pallets has helped make several individuals serious money. And it can work for you, too. This article will walk you through everything you need to know to get started selling wooden pallets for a profit.
Is liquidation a profitable business? ›
Starting a retail liquidation business might seem a bit daunting at first, but with careful planning and execution, it can be a very profitable retail business venture.
What pallets are worth money? ›
Pallet sizes will always play a major role in determining the sellback value of your used pallet supply, and the general rule here is that standard sizes like 48×40 and 48×45 will have higher sellback values as compared to custom sized pallets that are less useful for other businesses.
Is a pallet business profitable? ›
If you know where to get pallets, your pallet business can really make some money. The best online resource to find pallets is Repalletize.com. Repalletize is a pallet marketplace where businesses that have extra pallets list free pallets or pallets for sale, for others to claim.
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