Amazon Return Pallets For Sale: How to Profit

Author: Ingrid

May. 13, 2024

Machinery

Amazon Return Pallets For Sale: How to Profit

A significant trend among online sellers is purchasing Amazon return pallets and overstock items, then reselling them for hefty profits. Below is a comprehensive guide to help you get started.

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What are Amazon Return Pallets?

Amazon customers can return products within 90 days for various reasons. Often, returning the items isn’t cost-effective for sellers, leading these products to be liquidated. Amazon usually sells these return pallets in secondary markets through auctions.

Why Would You Want Amazon Return Pallets?

These pallets offer a large quantity of retail items at a significantly reduced price. The aim is to buy in bulk, reducing the per-item cost, and then resell those items at regular retail prices to generate a substantial markup.

What is the Process?

  1. Participate in Amazon’s auction for return pallets.
  2. Place your bid and win the auction.
  3. Complete the payment and provide necessary information to finalize the purchase.
  4. The pallet gets shipped to you.

Once you receive your pallet, here's what you can do:

  • Resell items in good condition.
  • Refurbish damaged products.
  • Sell parts of unrepairable items.
  • Sell original packaging if undamaged.

What Do You Need to Buy an Amazon Pallet?

  • Create an account on the auction site and get approval to bid.
  • Obtain a valid reseller certificate to avoid sales tax on purchases and for resale purposes.
  • If you win a bid, complete any additional purchase details, make the payment, and arrange for shipping.

Where to Buy Amazon Pallets

There are many liquidators that sell returns and overstock from major retailers. Here are some of the most reputable ones:

Bstock hosts the official Amazon Liquidation store. They sell return pallets through auctions, often with minimal descriptions and a few photos.

  • Register an account to place bids.
  • Use an Amazon.com account to complete tax exemption processes.
  • Ensure accurate shipping details, as Amazon arranges the shipping.
  • Amazon uses specific shipping providers, limiting your options.

Bstock also offers pallets from Walmart, Target, Wayfair, and Home Depot.

BULQ offers a different approach by selling return pallets directly, not through auctions. Listings are detailed, with multiple images and manifests outlining included items. BULQ arranges freight shipping based on your provided address and needs.

Liquidation.com offers Amazon pallets via auctions with item manifests. Shipping is coordinated through Amazon's logistics providers. They also have pallets from brands like Walmart, Target, Sony, CVS, and Lowes.

DirectLiquidations.com focuses less on Amazon pallets but more on major retailers like Walmart. The key advantage is the variety of shipping options, which can impact your profit margins significantly.

  • Various in-house shipping options or customer-arranged shipping.
  • Warehouse pickup is available.
  • Consolidated shipping for multiple pallets is an option.

bluelots.com is another auction site with a smaller inventory but detailed listings, including multiple images and manifests.

What is the best time to buy Amazon return pallets?

The best time is post-holiday season, early in the year, when there is an abundance of returned stock.

Receiving Your Pallet

Discuss delivery details with the shipping company. A full-size truck needs a loading dock, whereas a box-truck with a lift gate is suitable for residential deliveries. Alternatively, you could pick up the pallet from the terminal using a truck or trailer.

Making Money

When bidding on a pallet, aim for 20% below MSRP or better.

The MSRP is the 'estimated retail value' and doesn’t consider broken items, shipping expenses, and various fees. Aim to purchase the pallet at a low cost to achieve profitability.

Keep Shipping Costs Low

Choose pallets close to your location to save on shipping. Shipping costs might exceed pallet costs based on product categories. Look for shipping cost estimates before purchasing. If buying multiple pallets, consolidated shipping can save money.

Avoid Fees and Overhead

Reselling on Amazon may set you back a third of your profits in fees, while eBay takes about 15%. Track platform fees to ensure they don’t erode your profit margins. Local options like Craigslist, OfferUp, Letgo, or Facebook can reduce fees but have smaller audiences.

Repair and Refurbish as Much as Possible

A working product in original packaging commands a higher price. Test items, refurbish non-working ones, and package them attractively, possibly using original boxes found on eBay. Shrink-wrap the final product to make it look new.

Bundle Items to Increase Value

Complete products fetch higher prices than incomplete ones. For example, buy missing parts on eBay to complete a set. Present items as close to ‘new’ as possible.

Unrepairable Items

If items can't be fixed, sell parts individually. Undamaged original packaging might also be sold on eBay. Consider donating unsellable items for tax deductions.

Research and Be Aware of the Market for Your Items

If many resellers offer the same items, the competition will affect profits. Avoid over-represented products losing value and look out for ones less available to other sellers.

Some brands have restrictions for what products can be resold on Amazon.

Without authorization, you could face restrictions on certain products or lines. Use the Seller Assistant app or AZInsight browser extension to check item restrictions.

Pros to Selling Amazon Pallets:

Low Overhead

You need a reseller certificate and a shipping location. A workspace is essential for breaking down pallets, packing items, and making repairs. You’ll also need shipping supplies.

Easy to Start

Besides a reseller certificate and funds for your first pallet, you need selling accounts on chosen platforms and a bank account to receive payments.

Potential Profits

You can earn significant markups with branded products in good condition. While it's a gamble, there is profit potential if you’re diligent.

Cons of Selling Amazon Pallets:

Not Scalable

Success relies on your efforts to find deals and minimize costs. Hiring employees could drastically reduce profits and hinder business viability.

Your Income Will Be Inconsistent

Pallet values vary by chance. Some pallets are profitable, while others might not be. Pallet availability also fluctuates annually, making consistent finds challenging.

Turn-around Time to Sell Items

While some items might sell quickly, others may not. Items in demand might have heavy competition, and some might require repairs, slowing the process.

Need Space

You might start in your garage, but as you process more pallets, you’ll need more space. Inevitably, you might outgrow your workspace or need to dispose of excess items.

Conclusion

Amazon pallets can be profitable if you find nearby, resalable items in good condition. Though each pallet is a gamble, thorough research and smart choices can help you profit. Keep risks minimal and focus on maximizing opportunities.

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Contact us to discuss your requirements of How Many Cartons Can Fit on a Pallet. Our experienced sales team can help you identify the options that best suit your needs.

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