What to Look For When Buying Amazon Return Pallets?

    Nowadays, buying online is the new normal, especially from platforms like Amazon, which is a quick, easy, and convenient way to find specific products. That’s why more and more retailers open online stores on these platforms, to gain access to a global and wider audience.

    All discussions about E-commerce business models and online buying revolve around the visible aspects of the business like displaying, selling, and delivery of products. The focus is mostly on the business process that starts with ordering and ends in successfully delivering the products or order fulfillment. Order fulfillment is a critical component of online businesses logistics because timely delivery is most important to customers who take serious offense for delayed deliveries. Customers show no mercy for sellers who fail to deliver the ordered items on time and would quit the platform, never to come back again.  But even timely deliveries do not ensure complete customer satisfaction, as evident from the high rate of Amazon returns. Amazon com returns policy is a major reason for its success in the e-commerce market, as buyers prefer free returns as a safety net for wrong purchases. 

    Online business is attractive because it ensures global outreach and easy access to markets across the world but, with the global market come global issues, and customer returns are a logistical nightmare for sellers. Although it’s a big headache for eCommerce platforms to handle large volumes of return items, it opens a new revenue stream for them as they start earning by liquidating the return stocks in bulk. The activity triggers a series of events that provide a new kind of business opportunity for those who buy the return stocks. In fact, most of the time items returned to Amazon are piled into pallets and sold to buyers at auctions instead of other customers. Buying Amazon return pallets online can be a great business opportunity but make sure you know what to look for first. Keep reading to know the why and how about doing business with Amazon pallet for sale with the things to buy on Amazon.

    What is Amazon Returns?

    Sellers who use the Amazon platform to conduct their business online without setting up an online store from scratch can quickly access the widest marketplace to grow their business. With a tremendous surge in online buying triggered by the Covid19 pandemic, smaller retailers are flocking to the Amazon platform to sell their products with strong support from Amazon’s massive marketing network that can help grow their business faster. Sellers and retailers who sell on the Amazon platform are aware of the Amazon return policy as it is incredibly lenient with customers who want to return items.

    Although the majority of consumers prefer buying online for convenience and comfort, there is another big attraction to buying online. Buyers are at liberty to return the goods, and Amazon is bound to take them back.  It is not always necessary for buyers to return the goods for poor quality, but many other reasons can be. Buyers might return the merchandise because they ordered the wrong item or poor packaging makes them suspicious about product damage. There may be so many other reasons for returning the goods.   Simply said, the rate of product return for online purchases is very high, and usually, it is about 30%.  

    Free Returns are a Great Attraction for Buyers

    There is no reason to question if you can you return Amazon items because the world knows that returns are free. Regardless of the reason for refusing to accept the product ordered on Amazon online, you can return it to the company that arranges to pick up the product from your doorstep. Free returns are so attractive to buyers that 49% of online retailers in the US provide the option of free returns to retain customers.  Since younger customers constitute the majority of the customer base and consider free returns as a criterion for choosing the retailer, it is now becoming a norm for online businesses to include free returns policy for attracting and retaining customers.

    How Amazon Deals with Return Goods

    Online retailers have to formulate a policy for handling return goods without disrupting the business process. Amazon’s generous return policy is one of its reasons for retaining customers. Customers can return unopened orders within 30 days of receipt and obtain a refund in 2-3 weeks. Customers have to wait for a refund after putting the package in the mail or handing it over to the company’s representative. Customers can access the Amazon returns store by using the Online Return Center. You can also go to www amazon com returns and locate the returns menu.

    From this point, the liquidation process for Amazon begins. Amazon does not put a large portion of the returned items back into the sale process, and it applies to unopened items too. Instead, they prefer to get rid of the merchandise by liquidating it.  

    The Working Modality of the Amazon Liquidation Process

    Amazon’s business model based on solid algorithm-driven processes ensures the most organized order execution and delivery of items on time by maintaining deft coordination between various functions with the help of optimized staff. The inventory management is impeccable, as items are dispatched according to the category it belongs to. However, it is impossible to enforce such strict discipline for return items due to the random and unorganized nature of returns which the company does not control. As it is difficult to categorize the return products and neither is it worthwhile to spend money and time on it, Amazon arranges for liquidation of the items.

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    Does Amazon Sell Pallets?

    Yes, Amazon sells pallets that contain return items through liquidation companies. As holding on to the inventory of the return goods would be expensive and a waste of money, the Amazon liquidation process is the most effective to recover some money. It is cheaper for Amazon to get rid of the return goods inventory through the liquidation process in the long run.

    The Role of the Liquidation Companies

    The liquidation companies are Amazon’s business partners at the back-end that remain invisible consumers, as they focus only on buying. However, the unseen liquidation activities provide new business opportunities for some retailers who can capitalize on the low selling price and make good profits even by selling it at the most competitive rates. They might even charge lower prices than Amazon for some products yet maintain high profit.  More about it later, but now let us look at the role of the liquidation companies that offer pallets for sale. 

    The liquidation companies offer Amazon pallets containing the return goods for sale. Anyone can attend the auction for buying the items loaded on the pallet, including items from other retailers like Walmart, Target, etc., with whom the liquidation company partners.  

    How to do Business with Amazon Return Goods

    You can search for liquidation companies online or learn how to buy Amazon pallets, where to buy Amazon return pallets, and how to resale them to earn money by referring to a 75 guide created by Amazon in December 2020. The guide will help you understand what products to sell, how to find liquidation companies, identify the market with enough demand for the product, reselling strategies, best business practices, and much more. In addition, you will get access to the Pallet Source Directory to find 150 places that deal in bulk returned pallets. 

    The Business of Flipping Pallets

    Buyers of liquidation pallets can start their own business of flipping pallets. They can buy the pallets that contain items chosen by them from the list of items in the manifest at a price much lower than the MSRP (Manufacturer’s Suggested Retail Price) value.  The price is low because buyers have to accept the goods in the condition it exists without any scope for inspection. It carries some risks because buyers throw stones in the dark, hence the low price. Amazon’s liquidation pallets have an almost 75% success rate, according to available data. It means that almost 75% of pallet items are in good saleable condition and can help earn good profits. 

    Can I buy Amazon Return Pallets Directly from Amazon?

    Yes, it is possible to purchase Amazon return pallets directly from Amazon. The company auctions every year the returned merchandise to the highest auction bidder.

    How to Buy Amazon Liquidation Pallets

    The process of buying pallets that contain Amazon returns is quite simple. The Liquidation companies conduct the sale online and allow free sign up for buyers. You can sign up for a free account with the chosen liquidation company to start the buying process. Since it’s an auction sale, you must bid for your chosen pallet.  Use the liquidation company’s website’s search function and drop-down menu to browse through the category of products to choose what you need.

    Where to Buy Amazon Return Pallets?

    you can directly visit the Amazon Vendor Page on the website, where you can see every pallet, box load, and a truckload of products listed for Amazon liquidation that are currently offered for sale. After selecting the pallet, you must enter the bid and wait for the result. If you win the bid, you have to make payment and arrange for taking delivery of the goods. You can make payments by wire transfer, credit card, or credit account.

    Profiting from Pallet Liquidation

    Having successfully purchased Amazon returns, you will naturally try to get the most from it by upscaling the pallet’s contents as much as you can. Since the pallets are uninspected and untested, the items will be in various conditions. Some items might be ready for sale, while some other items might need some refurbishments and repairs. You can do a few things to increase your profit margin.

    • Sort and Segregate 

    The first task is to sort each and every item of the liquidation pallets to ascertain which items you can sell away immediately and those that need some repairs or refurbishments. Making bundles of some similar types of items will make it more attractive to customers.   

    • Repair and Refurbish

    The lot would contain some effective and damaged items which you can try to salvage by repairing or doing some touch-ups to help it regain its original condition as much as possible. You can take help from a third party to do a good job. You can set right by yourself some items that have minor faults. These items are easy to fix and, after the touch-up, would look the same and function in the same way as factory-finished products that add considerable value. 

    If a pallet has too many faulty items of the same type, you can try to use some parts of an item in another item to upgrade the item to the desired specifications and make it worthy for selling. You can retain the unused parts as spares that can be useful for some repairs in the future.  

    • Re-accessorizing

    Customers often return products because the supply is incomplete due to some missing items, but there are no issues with the product quality. Headphones and charges are the most common missing items in packages of items, of which these are accessories. It is easy and cheap to replace such items and sell the complete product in new condition that offers more value.

    • Repackaging

    If Amazon returns for sale is due to defective or damaged packing, you need to source for original replacement packaging or repack the product.  Since packaging is integral to product quality, poor packaging can deplete the value of the product despite the item not having any quality issues. Therefore, make sure that your products have the original packing, or if repacked, the packing, though plain, should be professional and attractive.  But again, there are other ways to deal with Amazon unclaimed packages from the unclaimed Amazon packages store.

    Things to Know When Buying Amazon Return Pallets

    The truth is, people would much rather shop with a particular retailer if it has a free returns policy, which generates more and more returns. Amazon sellers and retailers do not put these items back on sale as new, even though most of them are unopened, but they look for another way of selling those goods.

    These are the basic things to look for when purchasing Amazon return pallets:

    1. Reviews

    Finding a reputable and reliable liquidation company is essential to starting the business of flipping Amazon return goods. Buyers get considerable benefit from reputable liquidation companies that adhere to the best practices. Although you will be buying liquidation pallets, these do not scrap, and the products have considerable value for you to make profits. Doing good research should help you identify the most reliable liquidation company that cares for buyers. Your target should be to buy a high percentage of good products mixed with a small percentage of inferior ones.

    Consider looking at reviews and ask for recommendations for buying from a reputable seller. Online reviews usually give a clear picture of a company’s product quality and services, which also reflects on the company’s reputation. Also, with online research, you’ll get the chance to compare pricing and acquire in-depth knowledge about the products.

    If you want to buy good Amazon return pallets then checking other buyers’ experiences is a very important aspect since it can save you from unreliable sellers and suspicious deals.

    2. Know the types of Amazon Truckloads

    There are 4 types of Amazon returns truckloads which include large products, small products, high retail, and clothing. Large products (Bigs) mostly consist of large items like display cases, televisions, furniture, and similar merchandise, while small products (Smalls) contain small items like electronics, watches, and similar products.

    High retail truckload consists of the most popular items for resale, pallets with lower item counts than the small truckloads. These usually carry some of the best-selling stock from Amazon. Clothing, being a huge sector for Amazon, has high rates of returns. Some lucky buyers might even find a lot of designer clothes and accessories, which they can resell overseas where American clothing is on demand.

    3. Research about the Quality of Amazon Return Pallets

    If you want to be successful then doing research is crucial. Look for reputable liquidation companies that offer certain benefits to their buyers, and remember to look for the information list of whatever you are buying. This list consists of all the relevant information about the stock contained in a pallet, and most importantly its condition.

    Some liquidation companies provide manifests that accurately describe what is contained within each pallet, making it easier for purchase. Depending on your business needs and personal preferences, you will be able to know what products you are getting, whether they are unsorted customer returns at the lowest price cost or an overstocked merchandise with the highest resale value.

    4. Know What You are Getting

    Again, check the manifest for important information about the pallets whether they are ready to be resold immediately or they require some repairs. This will give you a clear idea of what you’ll be getting and its value. Some items can be sold for parts, and remember that even these discounted pallets are a great investment for resellers.

    To increase the chances of getting as much profit from each return pallet, remember to not only rely on the manifest but sort, repair, repackage, and re-accessorize. Some merchandise categorized as salvage can even serve its purpose for repair shop owners or anyone else looking to source parts.

    amazon customer returns

    Image Source- Unsplash

    5. Shipping Costs

    Successful retailers know that the shipping cost is what makes or breaks a sale. Prepare yourself to pay more for the shipping than the pallet with returned goods. Some sellers might even offer to let you pick up the pallets from warehouse distribution centers, or Amazon hub counter, and if you are within driving distance don’t forget to take advantage of this option.

    Amazon’s direct liquidation centers are mainly located near major highways or close to Amazon’s warehouses for delivering Amazon returns items. These centers are located in every city, and you can easily find one by searching online for Amazon returns near me.

    Consolidated shipping might help you alleviate some of the costs if you have the capital and capacity. This way you won’t end up spending hundreds on individual and smaller shipments.

    Final Thoughts

    Research is what makes or breaks the business of purchasing Amazon return pallets. Remember to find the right products and market to resell, and you’ll be on your way to success. Bear in mind that liquidation companies are a great way to buy merchandise at lower prices than the typical wholesale values, giving you an opportunity to maximize your resale profit.


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