How to Make Money with Amazon Return Pallets
There are various methods for sourcing inventory for resale on Amazon. Many sellers turn to overseas marketplaces due to their lower prices, but face challenges like high shipping costs and customs clearance. Consequently, buying and reselling items from local Amazon return pallets can be a highly lucrative alternative.
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In this article, we'll provide an actionable guide on how to procure Amazon pallets and transform them into money-making ventures.
What are Amazon Return Pallets?
Amazon's return pallets contain items returned by customers for a variety of reasons, such as extended delivery times or minor packaging defects. To avoid having to store unsold goods, Amazon bundles these items into boxes and offers them at a discounted price. Each pallet contains a mix of unrelated products, ranging from clothing to electronics and more.
Reselling products from Amazon return pallets is definitely worth it, as you can purchase multiple products at once for a low price, and then sell them with a markup. Statistically, nearly two-thirds of these pallets consist of new or functioning items, allowing for a high margin of over 30%. However, it's necessary to thoroughly assess the level of demand for the items, and market them efficiently.
Anyone can obtain Amazon return pallets for sale, from individual sellers to large retailers. It's absolutely legit to purchase and resell them, since they are offered by Amazon itself.
Now we’ll discuss where to buy Amazon return pallets.
Places to Buy Amazon Return Pallets
You can purchase Amazon return pallets directly from Amazon, or from liquidation companies. Let's explore the most popular options:
Amazon bulk liquidations store: Operated by Amazon itself, this program functions similarly to regular shopping on the platform. Enrolling in this program via the Amazon support team grants you access to view inventory and purchase pallets.
B-Stock solutions: This is an online auction platform where you can bid on any pallet you like and buy it for a great discount. You can also filter the auctions by location. Most auctions are located in Illinois, Texas, Maryland, and Arizona.
Facebook groups: Numerous groups advertise Amazon liquidation sales and pallets, often catering to individual buyers. Utilizing search terms like "return pallets Orlando" or "South Georgia liquidation wholesale pallet" can help you streamline the process.
When selecting a supplier, consider these three key criteria:
Delivery cost: Look for a supplier with a warehouse near you to cut down on shipping expenses.
Pallet cost: Check out deals from different liquidation companies online and compare prices.
Item condition: Avoid lots with too many damaged items. Some companies like 888Lot in New Jersey even allow in-person inspections.
While liquidation companies can offer lucrative deals, navigating the buying process isn't always straightforward. In the following section, we'll take a closer look at how to purchase Amazon return pallets.
How to Buy Amazon Return Pallets
Once you choose a reliable supplier, follow these steps to purchase an Amazon return pallet:
1. Register for an account. Provide your business information and a resale certificate on the company's website.
2. Review the offers. Pay close attention to product photos and descriptions, ensuring you understand the condition of each item for potential resale.
3. Submit payment. Depending on the supplier, you may proceed directly to checkout or participate in an auction. Keep in mind that these auctions can be time-consuming and tend to favor larger companies with higher bids.
4. Receive your items. Arrange for shipment, balancing cost savings with careful handling to prevent damage.
The cost of an Amazon return pallet depends on factors like each item’s quantity, condition, and other variables. Generally, prices range from $100 to $500. While there are cheaper options like Amazon mystery pallets, it's advisable to steer clear of these because they usually don’t include photos, so there is a higher risk of receiving damaged or unsellable items.
Once you get your pallets, you can start the resale process. Below, you will find a step-by-step guide to ensure the maximum efficiency of your business.
How to Resell Products from Amazon Return Pallets
Amazon return pallets are made up of different, unrelated items, so you need to examine them thoroughly and find a selling strategy for each one so you can get the most out of these products.
Follow these steps:
Step 1. Unbox and sort
As soon as you receive the goods, conduct a thorough examination. Check the quality of each item and divide them into four groups, based on their condition: new, good, items that can be repaired, and unsellable. You may also consider categorizing them by product type (e.g., apparel, beauty products, etc.) to streamline the process of listing them on marketplaces.
Step 2. Identify high-potential products
Prioritize items with the highest resale value or demand. These could be popular brands, trending items, or evergreen products. To identify the most profitable items, you may need to use analytical tools. Consider AMZScout's PRO Extension to get the most precise and accurate data on products.
Review demand and product price history with PRO Extension
Just follow these quick instructions:
1. Install the PRO Extension. Enter your email address to initiate a free trial.
2. Start your search. Type the product name into the Amazon search field.
3. Access the AMZScout PRO Extension. Click on the “AMZScout” icon, located in the upper right-hand corner of your browser.
4. Evaluate the product’s performance. Next to the item, you’ll see data on its performance, including the estimated number of sales per month, net margin, rating, and more.
5. Check the sales history. Evaluate a product's sales data by selecting Product History under the item to gain insights into the levels of demand and stability.
6. Examine pricing fluctuations. Assess price fluctuations for the product by clicking on Product History. This allows you to set competitive pricing for your product.
7. Calculate profitability. Click on the Profit Calculator below the item to assess your potential profit after deducting all related expenses and FBA fees, if applicable. This will help you quickly determine how much money you can make from this product.
The AMZScout PRO Extension makes it easy to assess an item’s profitability, allowing you to quickly identify hot products from the pallet and make data-driven decisions to market your products efficiently.
Step 3. Create bundles
Increase profitability by bundling products together. For instance, you may combine complementary clothing pieces or related accessories into attractive packages. This encourages customers to make larger purchases. Bundling can also help to clear out slower-moving inventory while boosting your overall sales revenue.
Step 4. Choose a selling channel and list your offers
You can sell new and high-quality items directly on Amazon, while platforms like eBay are more suitable for selling used products in good condition. Consider garage sales for damaged or repaired items. You may also leverage social media channels to create buzz around your product and attract potential buyers.
When reselling items from Amazon return pallets, it's crucial to state their condition clearly to avoid returns or complaints. As you gain more sales experience, you'll refine your strategy to maximize your profits from reselling these pallets.
Conclusion
Amazon return pallets can be an excellent way to launch your business with minimal initial investment. The key is careful planning, assessing product conditions, and measuring each item’s popularity. Use the AMZScout PRO Extension to help you identify profitable products and track demand trends. This will allow you to start making money fast.
