Online sellers are going nuts about buying Amazon return pallets for stocking their warehouses and thereafter dumping them in the marketplace at discounted prices to earn higher profits. But what are these Amazon return pellets? Let us know more about them.

Amazon has emerged as a popular platform to sell goods at. From biggest to smallest sellers, all can generate huge profits on this platform. All thanks to millions of online shoppers on Amazon. According to a recent report by Landing Cube, this platform is known for selling over 12 million products in a day. However, the delivery of the products to the sellers does not mark the end of the story. 

As high as the purchase figures appear to be, there has been a huge jump in the percentile of eCommerce returns in the previous years. A recent study revealed that 20-30% of the items shopped online are returned by the customers. But have you ever wondered what Amazon does with these returned goods? Well Amazon, posts these returned items and sells pallets of customer returns. 

Let us discover what exactly Amazon return pallets are, how to buy amazon returns pallets, who buys these pallets, and the pros and cons of buying such pallets one by one.

What are these Amazon Return Pallets?

To define them precisely, Amazon pallets are wooden crates. These crates are used by the platform to sell returned products to buyers. These pallets contain different types of products such as clothes, skincare, beauty, electronics, home appliances, books, and furniture. These returned goods are sold in bulk at discounted prices. The cost of these pallets is determined based on their size and contents. Here is a brief description of how this process of selling pallets works.

How Does Amazon Sell these Return Pallets?

We now know that returns have been increasing over time. There are plenty of reasons behind the same. Most of the retailers offer a free return policy to their customers. A survey revealed that 62% of customers are more likely to shop for products from a particular retailer if it offers a free return policy. Well, this free returns policy may be a matter of convenience to the customers, but may turn out to be a matter of headache for the seller. 

Now, as and when the goods are returned to the sellers, these sellers have two options. They can repack and relist the goods on the website. However, this is a costly approach and most of the sellers desist from opting for it. On the other hand, sellers can now liquidate their returned goods by selling pallets of customer returns to liquidators or resellers. These resellers are mostly small industrialists who buy these returned goods and make something branded and high-quality out of them.  

The best part about using these returned pallets for the resellers is that not every Amazon return is faulty. Out of all the returned goods, only 20% of them are damaged.  The rest of the goods are mostly returned because they are no longer needed or appear different from what was ordered. As a result, the new and unopened goods can be easily relied on by the resellers to make a better product. This proves to be a steal deal option for the resellers in the long run. Buying Amazon pallets is very profitable. 

Also Read – Most Expensive Thing On Amazon

How to buy Amazon Return Pallets?

Amazon follows a quick mechanism to place the returned merchandise in the warehouses from where they are available for resale. The goods are heavily discounted and the buyers buying these goods can earn a fortune even if they sell them at their MRP! So, if you are also willing to buy these Amazon pallets, then take note of these points. This will help you to make an instant bargain. For buying pallets from Amazon, one needs to  take into account the following factors:

• Always search for a reputable seller to buy Amazon return pallets

Before you buy Amazon return pallets, always pay heed to the testimonials and experiences shared by online buyers who bought from a given platform. They are the best people to refer to for knowing about the type and the quality of the merchandise supplied by a given seller. This information will help you make an informed decision.

• Understand the terms and conditions

Before buying the Amazon pallets, always prefer going through the terms and conditions of the seller. Most of these transactions are final and the returned goods cannot be further returned. Therefore, one needs to be very particular about all of this in advance. One must always seek proper information about their description, price, and quantity in advance.

• Analyse the costs

The resellers purchasing the pallets of the returned goods during liquidation can earn profit from this entire transaction only when they have analyzed their costs in advance. Sometimes the warehouses from which these pallets are to be picked up are nearby and hence, you will have to pay a few shipping charges. However, many times, these shipping costs are more than the price of the Amazon return pallets themselves. Choose your sellers wisely after evaluating all these factors.

Tips to Make Money with Amazon Pallets

There isn’t any doubt to the fact that buying Amazon return pallets and reselling them is a smart business strategy to build your business. Not only does it provide inventory at a discounted price, but also resellers get to sell an already optimized product in the marketplace.  Here are some tips for these businessmen to make the most of this business opportunity to buy Amazon pallets.

• Aim for a lesser cost value

If as a reseller you are interested in reaping a good profit in the transaction, then always aim for a lesser cost value. The lower the price of the return pallet, the higher your profit. The cost value should be the final cost you will have to bear for getting the physical possession of the goods. This will include the price at which the merchandise is sold, taxes, and shipping charges. Ideally, there should be a margin of 20-40% from the actual MRP of the good. 

• Always buy from a nearby location

If you want to buy an Amazon return pallet, make sure that the proximity of the warehouse from the delivery address plays an important role in deciding your profits. If you buy return pallets from far places, then automatically the margin you save from the MRP of the goods gets covered by your shipping costs. Therefore, one must always check the quotes before placing an order. This will help you to save a lot of money beforehand.

• Be careful about the choice of goods purchased

One must always attempt to buy unopened and unused return pallets against damaged and faulty ones. A working product in its original packaging will always save you more money. A defective product on the other hand can add to your overhead costs which may ultimately reduce your profitability.

• Research in advance the market of your items

Amazon return pallets comprise different types of goods. Since these products are available at extremely low prices, one must be very particular about the type of goods bought. Hence, it is always advisable to research in advance about the market value of the goods. This will always help you to make an informed choice according to the demand for the product.

Is it Worth Buying Amazon Return Pallets?

Now that we have discussed a lot about these return pallets, it is important to make an overhead analysis of the worthiness of buying Amazon pallets. Let us evaluate the pros and cons of this idea one by one:

Here are some reasons as to why you should enter this segment:

• Low overhead cost

Getting yourself the Amazon pallets is a beneficial idea to save yourself from paying high overhead costs. All you have to do is buy the goods at discounted prices, repack, rebrand, and resell them. 

• Ease of business

Starting this business is extremely easy. You will have to create a seller account and start selling the return pallets. There are no procedural formalities involved in this business. 

• Amazing profits

Since you save almost your entire overhead costs related to logistics, branding, and marketing in addition to getting products at extremely low prices, you tend to reap massive profits in this business. 

Here are some reasons which you should reconsider before entering into this segment:

• Limited growth 

This business is not scalable. There is a limit up to which you can buy Amazon return pallets and sell them. The idea to rebrand the product involves a lot of financial and human resources. The cost of deploying these resources makes this idea less lucrative. 

• Limited control

Unlike other types of businesses wherein the entrepreneur has control over the inventory, businessmen do not get to control the components of the pallets. These pallets are randomly packed by Amazon and may not entirely comprise goods useful to you. This can result in wastage and the creation of dead stock.

Final Take

We have discussed the concept of Amazon return pallets in detail. We have also evaluated the mechanism of this process and the ways one can make more money out of this. There is a huge potential in this business if liquidators are conversant with the quality, description, quantity, and costs of the returned pallets. However, despite undertaking all the precautions, there is always a possibility of getting stuck with a bad pallet. This element of risk cannot be eradicated. But it can be mitigated with adequate research. What do

FAQs

What are the leading liquidators in the market?

Bulq and Bstock are the latest liquidators in the market offering discounted Amazon returned pallets.

What do you need to buy a pallet?

All you need is an account setup at the auction site. Getting yourself a reseller certificate can help to enhance the credibility of your account and invite more bids.