Amazon is a competitive marketplace, and sellers wanting to thrive must find ways to get a leg up on the competition. You can become a competitive seller by identifying a selling method that allows you to price your products competitively without sacrificing profit margins. One selling method that will enable you to find profitable products is buying and selling Amazon return pallets. In this guide, we’ll discuss what Amazon pallets are, the process of buying them, and how you can maximize profits by selling them on Amazon.
Understanding Amazon Returns Policies
Amazon’s core goal is to become the most customer-centric company in the world. They have stated this in all their investor statements and across their website. Customer satisfaction is at the heart of customer-centricity. Amazon’s way of ensuring customer satisfaction is ensuring that customers can seamlessly buy products and return them if they’re not up to their expectations.
Which brings us to Amazon’s Return Policies.
Customers can return items within 30 days of purchase. These can be unwanted products — maybe the item was the wrong size or color or didn’t work as advertised. Or, they can return items that are broken. These returned items form the foundation of Amazon pallets. The condition of the items in an Amazon pallet differs based on the condition in which they were returned.
What is an Amazon Pallet?
An Amazon pallet is a bulk collection of returned, overstock, or damaged items sold in bulk. These pallets are categorized based on the types of products they contain. Amazon creates these pallets by grouping similar returned or excess items. They are then grouped according into different categories:
- Electronics: Pallets containing laptops, tablets, smartphones, and other electronic devices.
- Home Goods: Items like furniture, kitchenware, appliances, and home décor.
- Clothing: This may include clothing, shoes, and accessories for men, women, and children.
- Toys: A mix of toys, games, and other children’s products.
- Mixed Pallets: Contain a combination of items from various categories.
Cost of Amazon Pallets
You’re probably asking yourself, “Can I buy Amazon returns pallets?” Yes, you can, but before we discuss how to buy Amazon returns pallets, let’s first discuss the cost. So, how much will it cost you to buy Amazon pallets? An Amazon returns pallet can cost anywhere from $100 to $10,000.
The price primarily depends on the products in a particular returns pallet. For example, a large pallet of electronics can cost up to $10k, while a pallet of clothing or toys can cost $100 to $600. When you buy a pallet, you also need to consider the cost of shipping it and refurbishing or fixing the products.
Where to Buy Amazon Return Pallets
If you’re looking for pallets for sale, there are a lot of options you can explore. For starters, Amazon provides a liquidation program where they auction off returned products to make way for new inventory. Besides Amazon’s liquidation program, there are third-party liquidation companies where you can buy Amazon return pallets. Here’s a list of the liquidation companies that sell Amazon pallets.
- Amazon Liquidation Auctions (U.S.)
- BULQ (U.S.)
- Direct Liquidation (U.S. and Canada)
- Liquidation.com (U.S.)
Amazon Liquidation Auctions (US)
Amazon Liquidation Auctions was formed in 2018 when Amazon collaborated with B-Stock, a third-party auction house. Here, you can bid on return pallets ranging from fashion items to books. However, you must register with B-Stock and submit a resale certificate to buy Amazon pallets on Amazon Liquidation Auctions.
On the upside, Amazon Auctions is a reliable way to get early access to Amazon pallets before they are listed on third-party auction sites. It’s also cheaper, and the items can often be as-new.
The only downside to buying Amazon pallets from the Amazon Liquidation store is that it can be time-consuming. The process can take 2-3 business days, and there’s also the risk of receiving damaged items on the pallet.
BULQ (US)
BULQ is a liquidation store company headquartered in the U.S. It offers a wide selection of Amazon pallets, with prices ranging from $100 to $1,000. BULQ sells pallets for a fixed price or through a 48-hour auction. They also offer shipping within the United States for $30.
The upside of buying Amazon pallets on BULQ is that they offer manifest information. You can tell the items in the pallet and even select specific items from a pallet. This makes it easier to find products you can resell at a profit.
On the downside, damaged or unsellable items may still be on the pallet. If you live outside the U.S., you must arrange shipping and handling.
Direct Liquidation (US and Canada)
Direct liquidation partners with multiple marketplaces to auction returned pallets. One of the best features of this platform is the ability to search for pallets by marketplaces. For example, if you only want to buy returns from Amazon, you can narrow your search to Amazon pallets. You can also search based on categories. Direct Liquidation uses a bid system, so you have to register to buy pallets from them.
Liquidation (US)
Liquidation.com focuses on wholesale and industrial pallets. Although Liquidation.com uses a complicated auction system, you can get great deals on Amazon liquidation pallets and resell them profitably.
Other liquidation auctions and platforms worth checking out are:
- Wholesale Ninjas (US)
- Quicklotz (U.S.)
- 888Lots
- BlueLots
- Via Trading (U.S.)
- Liquidity Services (U.S.)
You can also buy Amazon pallets at a physical liquidation auction. Running a Google search for “Amazon liquidation store near me” can reveal physical liquidation stores that sell returns pallets near you. Buying pallets from a physical liquidation store lets you examine the pallet up close and get a better understanding of the items in the pallet.
How to Buy Amazon Pallets
Acquiring an Amazon pallet isn’t as easy as logging into an auction and buying one. You need to follow a particular process to get value for your money and a pallet with resellable items. Let me walk you through the process of buying a pallet.
Research and Selection
The journey to acquiring a good Amazon returns pallet starts with thorough research. You can’t afford to skip this critical step when hunting for profitable Amazon pallets to resell.
For starters, you need to find the right auction platforms to purchase your pallet. I’ve explored some options in the previous sections, but you can do further research to find even more liquidation stores. Be sure to look at the reviews to get a clear picture of the reputation of the liquidation auction.
Next, compare prices across different platforms. While cost is a factor, don’t focus on it too much and miss out on pallets with valuable items. You need to strike a balance between affordability and getting valuable items.
Set a Budget
Setting a budget and sticking to it will help you narrow your options and make it easier to find suitable Amazon pallets. But while you set your budget, you also need to consider the condition of the items in the pallet. While it’s possible to get Amazon pallets for cheap, the risk of damaged or unsellable items is significantly higher.
Registration and Account Set-Up
Most pallet liquidation auctions require you to set up an account and submit essential information like business details and tax information. Have your business information and necessary paperwork to ensure a smooth registration process. You might also be required to provide references or proof of business legitimacy for larger purchases, so be prepared to submit the necessary paperwork.
Pallet Inspection
If you buy Amazon pallets at an expo, you have the advantage of inspecting them physically before purchasing. Look for signs of wear and tear or damage to understand the condition of items in the pallet and estimate potential resale value. If you’re buying the returns pallet online and can’t physically inspect it, ask the seller for detailed up-close photos that will give you a better idea of its condition.
Bidding and Purchasing
Many liquidation stores use pallet auctions to sell Amazon returns. Familiarize yourself with the auction format (sealed bids vs. live auctions) and bidding strategies. Start with lower-value pallets to hone your skills before tackling high-ticket items. It helps if you do prior research on average pallet prices in your target category to avoid getting caught up in bidding wars and overpaying. If the liquidation store offers a ‘Buy Now’ option along the pallet auctions, you can use it to get pallets you’re confident about and skip the auction process.
Receiving and Sorting the Pallet
When your Amazon pallet arrives, take pictures or videos of its condition as you’ve received it. Remember also to compare the manifest if provided with the actual items. Next, you’ll need to inspect each item carefully for functionality, damage, and completeness. Check if items match the description and grading system provided by the liquidation auction. If you notice any discrepancies, contact the supplier with clear documentation of the discrepancies.
Reselling Amazon Pallets Items
Once you’ve inspected, tested, and sorted the items in the pallet, it’s time to resell them and make some profit. List each item on Amazon in its proper category and indicate its condition — whether used or refurbished. Promote the items using Amazon PPC advertising to drive sales and make profits.
Tips for Maximizing Profit from Amazon Pallets
Maximizing profits from Amazon pallets goes beyond knowing where and how to buy them. You need strategies to help you leverage all Amazon tools to make money reselling Amazon return pallets. Luckily, I’ll share the strategies you can use to maximize your profits from Amazon pallets. Here you go.
Effective Pricing and Listing Strategies
Price is a significant sales driver for Amazon, and Amazon is very keen to ensure fair pricing on the platform. If you’re going to make profits from your Amazon returns pallet, you need to adopt effective pricing strategies.
Do competitor research to determine the price range for items similar to yours. Amazon repricing tools can also help you determine the optimal price for your item and automatically adjust your prices.
When you list your products on Amazon, use high-quality photos and listing copy to attract and convert shoppers. Follow Amazon’s policies to avoid listing suspension.
Bundle Complementary products
Product bundling lets you pair a high-selling product with a complementary but slow-selling product. This way, you leverage one product’s success to sell a less successful product. When selling your Amazon pallet items, you can create product bundles with items already performing well. Besides selling more items, bundling also helps you increase your average order value and maximize profits.
Deploy Efficient Inventory Management Strategies
An efficient inventory system is crucial to tracking your Amazon pallet purchases, individual items, and sales performance. My Real Profit inventory analytics software can help you automate inventory level monitoring so you never run low on stock again. This can also help you see how many resellable items you’re getting in your pallets and calculate your ROI.
Track Your Profits
Tracking your profits is equally essential as monitoring your inventory. Don’t just focus on sales volume. Regularly analyze your profit margins per Amazon pallet and per item. My Real Profit lets you track your profits accurately by factoring in hidden expenses in profit calculation. This data will guide future buying decisions and overall business strategy.
Utilize Amazon PPC Advertising
Amazon PPC Advertising is an indispensable strategy for increasing your listing’s visibility. Target relevant keywords in your Sponsored Products ads so that your products appear in relevant customer searches on Amazon. If you’re brand-registered on Amazon, consider incorporating Sponsored Brands ads in your PPC strategy to increase brand awareness and get more eyeballs on your products.
Leverage Social Media and External Traffic
In addition to Amazon advertising, advertising your Amazon pallet items on social media can broaden your reach and create even more visibility for your listings. Consider partnering with influencers on Instagram and TikTok to promote your products with User-Generated content. Additionally, you can use Facebook ads for more targeted marketing to get your items in front of your target audience.
Start Making Profits With Amazon Returns Pallets
Buying and selling Amazon returns pallets isn’t without its risks. But when done right, the reward far outweighs the risk. Buying Amazon pallets can be a lucrative venture for new sellers looking to break into Amazon or experienced sellers looking to try a new business model within Amazon. You can turn Amazon returns into revenue by understanding how to buy an Amazon return pallet, what to expect, and how to maximize your profits. And when you need to track your performance metrics when reselling Amazon pallets, My Real Profit will be your partner, accurately compiling your day-to-day performance metrics directly from your Amazon account.
