Buying an Amazon return pallet is one part gamble, one part game.
You purchase these pallets sight unseen, meaning you will have no idea what you are getting beyond a category of item or theme.
This helps reduce waste and allows people to buy discounted items that are still in good condition in a sort of online thrift store.
These pallets can become a form of passive income if you know how to play the game.
Here, we will share with you the ins and outs of buying Amazon pallets for sale.
- What Does Amazon Do With Returned Items?
- What Are Amazon Pallets for Sale?
- Are the Amazon Pallet Sales Legit?
- How Much Does an Amazon Pallet Cost?
- How Much Money Can You Make Selling Amazon Pallets?
- How To Buy Amazon Pallets for Sale
- How To Make Money From Amazon Pallets
- Is It Worth It To Buy Amazon Return Pallets?
- Frequently Asked Questions
- Wrapping Up
What Does Amazon Do With Returned Items?
Amazon states that they are committed to helping customers make easy, hassle-free returns, and they try to resell or relist all returned items.
First, they are inspected for quality control, and if they are considered “new”, they are relisted on their website and resold.
According to Amazon, most of their returns go this way.
However, there are a few cases where the items are not new enough to sell.
These items are then sold to liquidators, returned to the supplier, donated to charity, or resold as “used” through the Amazon Warehouse.
What Are Amazon Pallets for Sale?
Most of the time, Amazon pallets are sold through liquidation companies.
These companies receive returned Amazon products and package them by pallet or truckload for customers to purchase.
Are the Amazon Pallet Sales Legit?
Amazon pallet sales are mostly legitimate.
However, the probability that you will end up with broken items is higher than if you purchase new ones.
Since resale and liquidation sites are focused on getting rid of the product, not so much quality control, sometimes items arrive broken or in lower quality conditions.
If you are unsure of the legitimacy of a company, check out the customer reviews or the About Us page on the website.
How Much Does an Amazon Pallet Cost?
Amazon pallets for sale typically cost between $100 and $5,000, depending on the total value of the pallets.
It is possible that it can be up to $10,000, but this is rare. Commonly the pallets cost between $100 – $1,000.
The cost depends on many factors.
These factors include the value of the returned items, the condition of the returned items, how long they have been waiting to be repurchased, and from which seller you buy.
How Much Money Can You Make Selling Amazon Pallets?
There are a few ways to make money selling items included in Amazon return pallets.
The two main ways to make extra cash are to buy the pallet and then sell the products on an e-commerce platform, or you can buy returned items and create pallets and then start selling on Amazon through their independent seller program.
You can also check out selling on Etsy in this manner.
The second way to make money selling Amazon pallets is to create your own mystery box or return pallet by purchasing returned items and then combining them.
You can sell on Amazon, Etsy, or sites like eBay and make some cash off these items.
If you are meticulous in creating good quality pallets, you can make up to 50% profits off each pallet or item you sell.
Making a reputation for having good quality products included in these pallets is crucial to becoming a reputable seller, thus gaining more traction online and becoming a trusted source for resale items.
How To Buy Amazon Pallets for Sale
There is a specific process you should follow for buying Amazon return pallets.
In simple terms, you should check the liquidation sites and companies, then start bidding on products and pallets.
Read up on the ins and outs of this process below!
Check the Supply of Liquidation Companies
Some liquidation companies are online only, such as liquidation.com.
Many online sites are more auction-based rather than price-based.
There is usually a photo of the size of the pallet, but there is not a lot of information suggesting what you will receive.
Instead, you should check the manifest for clues about what is included.
Becoming an avid searcher of liquidation sites and companies is the most crucial part of obtaining quality items for resale.
Amazon conducts liquidation auctions, but there are plenty of alternatives to Amazon, such as Direct Liquidation, Liquidation.com, and Blue Lots.
Find a Pallet You Want To Bid On
Once you log on to one of these sites, check out the pallets they have up for bidding.
Sometimes you can find pre-priced pallets, but more often than not, they operate on a bidding system.
Liquidation sites have ways for you to search for the type or category of product you are looking for, then you can check the manifest for any clues about what comes in the pallet.
After you find the pallet you want, start the bidding process.
Check out the other bids people have made and make a comparable bid.
If it is something you want, bid lower so you can raise your price later if necessary.
Keep in mind the timeframe of bidding as well. If it looks like it will end soon, you have a better chance of winning the bid!
How To Make Money From Amazon Pallets
Now that you have obtained an Amazon pallet, let’s talk about how you can make money selling the included items.
Sort Through the Items in the Pallet
When you receive the pallet, the first step is to sort through the items to identify what they are and check their condition.
You might find that you have a lot of one specific item or smaller quantities of a wider range of items.
Either way, you should check each one to be sure all necessary components are included, check that they all work and are usable, and determine if they can be resold.
Repair and Refurbish All You Can
If you find broken items that need a simple fix, complete these repairs and refurbishments carefully.
You can increase your potential product to sell by improving a few minor issues on the returned merchandise.
Do not leave money on the table!
Once you have inspected and repaired each item, repackage them in their original packaging.
If it is a fragile item, repackage it neatly, so it does not break on its way to the next buyer.
Inspect Everything Thoroughly
Be sure to inspect all packages and packages thoroughly.
You want to include any slips of paper, like instructions or warranties, that come with each package. Ensure they are there.
You also want to inspect the packaging of the pallet or the individual boxes to make sure all items listed are included, and that it is securely packed.
Now that you have ample products ready to sell, it is time to start selling!
You can create a seller’s page on Amazon or try other avenues like Etsy and eBay.
Remember, the law mandates that you must pay taxes on any income you receive if it totals more than $400.
For this reason, it is a good idea to set aside money for taxes so you don’t have trouble with the IRS during tax season.
Market Your Store
Once you set up your online store, use free marketing techniques like adding links to your social media channels or frequently posting about your online store.
Include images and estimates of potential products included in the boxes.
Use SEO through your store if that is an available feature through your selling platform.
Is It Worth It To Buy Amazon Return Pallets?
If you are looking for a way to make passive income, buying Amazon return pallets is often worth the money.
If you are just interested in purchasing these pallets because you hope there is plenty of products for a low price, it is more of a gamble.
However, if you find a reputable seller who delivers quality products for a great deal, it will be worth it in the long run!
Pros of Buying an Amazon Return Pallet
Here are the pros to buying an Amazon return pallet below.
Not a Big Investment
The first pro is that it is not a big investment since you can find pallets for as little as $100 with a valuation of up to three times that amount.
Most of the time, the products are at least in working condition, so it is generally a fair deal.
Doesn’t Require Much Storage
Obtaining an Amazon return pallet does not require much storage, especially if you decide to sell the items or keep them for yourself.
Cut Out the Middleman
Buying directly from Amazon’s resale site helps reduce the number of hands the returned product passes through.
You can be sure that the product has been returned, inspected for quality control, then repackaged and sold directly to you.
Cons of Buying an Amazon Return Pallet
Here are a few cons to buying an Amazon return pallet.
Buying Sight Unseen
The biggest con associated with buying Amazon return pallets is that you buy sight unseen.
Buying sight unseen is the case for most, if not all, return pallets available for purchase.
Buying sight unseen means you do not see what you are purchasing before you buy it.
You may receive a category of items or products that will be on the pallet, but you won’t have knowledge of the items themselves.
This means you might receive damaged products or ones that you can’t sell.
However, you may also receive great items that won’t cost a lot of money, so the risk may be worth it if you are good at marketing products and reselling them.
Hard To Grow and Scale
It is difficult to grow and scale your production in terms of growing a business where you resell items bought off an Amazon return pallet.
Most of the time, it can be hard to find exceptional products you can sell at a higher price, thus increasing your profit margin.
May Not Be Able To Resell Items
There might be times when you receive items missing crucial pieces you cannot replace or broken items by the time you receive them.
You can not resell a broken item.
You might also be unable to resell items if they are outdated or if the item is available brand new for a very reasonable price that you can not beat.
Making a business out of buying and selling Amazon pallets takes work to market, just like any other business.
Conclusion: Is It Worth It To Buy an Amazon Return Pallet?
The bottom line is that it can be worth it to buy an Amazon return pallet for personal or resale use.
You need to find a reputable company you can rely on for up-to-date, like new products, and market your online brand well enough to draw a following.
Frequently Asked Questions
Let’s go over a couple of frequently asked questions about Amazon return pallets.
Can I buy Amazon pallets directly from Amazon?
You can buy them directly from Amazon! You will likely have better luck finding a wider range of returns through a liquidation site, but Amazon does have these items available for sale.
Does Amazon sell pallets of unclaimed items?
Amazon does sell unclaimed items, but it is more common that they are sold individually instead of as a part of a return pallet.
There are cases where they end up on a return pallet, but you will most likely find unclaimed items for general sale on Amazon.
In the current landscape of online shopping, returns are bound to happen, but that doesn’t mean these products have to go to waste!
Try your hand at reselling items in like new condition to make a little extra cash and help others find hidden gems for a decent price.
Buying Amazon return pallets is a good way to reduce waste. Selling these items online is an easy way to make passive income. Try it out now!