Where to Buy Amazon Return Pallets? (Everything you need to know…)
Worldwide online sales have been growing over the past decade. Almost everything you need can be delivered by ordering online, I didn’t even have to leave the house.
It’s not just me, in 2020 alone, total online sales are around $545 billion, and that’s just in the US. This is not only good for consumers, but even for businesses and people who want to start a business.
You would be surprised to learn that about 30% of all items purchased online are returned due to some kind of defect or simply due to consumer choice. It’s even easier when all these online sellers offer free returns.
So what happens when these items are returned? Large online stores sell these items in large pallets to liquidators or resale businesses. This is a great opportunity for anyone to start a good income stream by sourcing and selling items from such pallets. Let’s take a look at how to source and sell these items.
Where to Buy Amazon Return Pallets?
In order to buy Amazon returns, you need to go through a clearing company. You can search the websites of these companies and buy items in bulk. They are usually B2B and take items sold on Amazon from sellers to liquidate remaining inventory. One of the most popular places to buy Amazon return pallets is B-stock.
If you want to learn more about Amazon return pallets, what they are, how to buy and even resell, keep reading…
What is an Amazon Return Pallet?
Online business is growing rapidly and there is no reason to stop that growth. But one of the main drawbacks of an online business is that customers tend to have a higher return rate compared to products brought in by a brick-and-mortar. So what do you think these companies do when customers return these products?
If you think about it, there could be many reasons why anyone should return their product. It can range from damaged or defective products, or simply because consumers don’t like the product, or the results are different than they thought. So what should companies do now?
They can take back products, see what went wrong and decide which products they want to relist. But it takes a lot of time and effort. For large multinational companies, this will all take more time than just selling the product to a third party.
That’s exactly what they do, and Amazon tends to sell these returned products in large Amazon pallets to liquidators or third-party sellers. Many people try to buy these pallets because they can sell them on eBay or other sites.
Today, most of these pallets are sold through online marketplaces, which makes accessing these pallets very easy. You can even source some branded products through these sales. Even in the brick-and-mortar market, this process is ongoing, and many companies use this method to clear their backlogs and seasonal products. The only difference is that now it has moved online.
Why buy Amazon pallets?
There can be many reasons to buy an Amazon pallet. Some people just buy it so they can resell them on eBay, flea markets, Poshmark, Offerup, etc. The process is as simple as earning a side income. The good news is that you don’t even have to start with a lot of money.
Some people start with just a few hundred dollars, then they move to larger amounts. A lot of people also start with a line of credit, but I wouldn’t recommend it if you don’t have previous experience buying pallets.
Another reason could also be building up inventory. Some businesses need a lot of inventory to begin with, and this is a great place to source inventory. If the product is already sold in the primary market, there should also be a demand for the product in the secondary market.
If you already have some connections with a dealer or discount store, you can buy these pallets in bulk and sell them fast. As such, most of these products will end up costing you a fraction of what you would buy from regular sources.
An Amazon resale business is one of the most popular ways to earn extra income. With time and patience, you can even turn it into a full-time business.
How should you buy Amazon pallets?
Before we move on to the sources from which you can buy these Amazon products, there are a few things you need to consider.
Some of these points may be obvious, but you won’t believe that people make small mistakes so often that it will cause your profit margins and morale to collapse.
What to look out for when buying Amazon pallets?
The first point is to manage your expectations. There can be multiple products in one tray, and they may have different shapes. So you need to know which products need some additional repairs before they can be sold, and on the other hand, some products may not be damaged at all. You need to be careful when bidding on pallets and pay attention to the condition they come in.
If you don’t have a lot of time for repairs and refurbishments, you’re better off bidding on pallets that are in better condition. But also keep in mind that the price will be on the high side.
Sometimes you may also have a product that cannot be repaired, so what should you do? The answer is very simple, you have to see if the product has value. For example, many repair shops are looking for scrap, so they are also willing to buy damaged electronics.
Find a reputable seller
Don’t invest all your money in one seller and one pallet. Ask and research who is considered a reputable and reliable seller and who is not.
You don’t want to be tricked by someone and get something you don’t even want. Keep this in mind, especially if you plan to make a large purchase.
Consider shipping costs
One of the biggest mistakes I’ve seen people make is that they don’t account for shipping costs and pallets. Whenever you’re bidding on something, keep in mind that sometimes the shipping cost can be higher than the actual cost of the pallet.
If you can find a seller near you that you can drive to pick up, you’ll save a lot on shipping. The entire profit margin may depend on what you pay for shipping.
If you’re buying items in bulk, renting a truck to ship them all at once can lower your shipping costs per item.
Where can you buy Amazon return pallets?
Before everything was done online, it was difficult for small business owners to get legal and cheap inventory. But with the new online auction marketplace, things couldn’t be easier. However, you still need to do a lot of research on where to buy pallets from.
The first step you need to take is to register as a reseller and register your business. After this, you have two main options, you can buy directly from Amazon’s liquidation auctions, or you can buy from third-party auction venues like B-stock.
Amazon Liquidation Auctions are perfect if you’re looking for a variety of products including clothing, electronics, or home products. You can buy liquidation pallets directly from Amazon. If you’re in the US, you can buy less than one truckload (LTL) of backlog at a time, I’m not sure if this rule applies outside the US.
To buy from Amazon, all you need to do is register with them and start bidding.
Another option you have is through a company like B-stock. This is ideal if you’re starting small and looking to create a strong inventory. It’s a B2B platform and all resellers are verified, so you don’t have to worry too much about being scammed.
Other options for buying Amazon return pallets:
Tips for Reselling Products from Amazon Pallets
Once you’ve successfully bid and brought your first pallet, you need to ensure your profits are maximized by upgrading the products you find in it. Remember that the products you will get will be in a variety of conditions, so the first step should be to sort and bundle all of them.
You will have to sort your products according to product categories, for example to separate electronics from clothing. After doing this, you will need to sort them according to their condition. Keep a bunch of products individually and sell them directly without any work.
The next category should be products that are completely useless and cannot be saved at all. This type of product is best taken to a repair or scrap shop. Other categories can be ‘used’, ‘refurbished’, ‘factory sealed’ and ‘new out of the box’.
Once that’s done, start repairing and refurbishing products that require some work. You’ll also need to redecorate some items that are usually very cheap. For example, something might be missing a charger or headphones, which you can easily find.
Another tip is to never include the product’s original warranty, as most of the time consumers won’t be able to redeem it because the product is second-hand. For refurbished and repaired products, you can choose to do it yourself or through a third party.
The final step is to repack the product in a box in good condition. A good packaging can truly appreciate the value of your product, while a poor packaging can make the product unsaleable.
If you want to learn more about Amazon, check out these related posts to find out when Amazon charges for pre-orders and Can I use Amazon gift cards at Whole Foods
Buying and selling Amazon pallets can be a great business idea if you are looking for a good side income. But before everything else, make sure you do your research on where and how much to buy for the first time.
Start with a proper plan, don’t just jump in if you don’t have any experience. You can always start small to see what the business is all about. good luck!