With over 514 Billion USD in net sales revenue, Amazon is bigger than ever. With more and more people buying online, there is a high increase in returns.
Amazon is a customer-centric marketplace, meaning it prioritizes its customers' needs and preferences, which is why it is so easy to return items on Amazon.
The downside of these easy returns is that approximately 5-10% of the items sold online come back as customer returns. Its higher incase of clothing and fashion merchandise. These customer returns are a loss for any seller, which can seriously impact their business.
What happens to these customer returns now? Amazon created the Amazon Return Pallets program to deal with the growing customer returns. Under this program, Amazon sells pallets of Customer Returns to sellers or whoever bids for them at a heavily discounted price.
These return pallets are sorted out and resold by the sellers on Amazon and other platforms. The batch that was once a major source of loss for the sellers is now a full-fledged niche for many business owners.
There is much more to the Amazon Return Pallets Program than just buying and selling. Here I am to discuss all about Amazon Return Pallets: from a detailed guide on purchasing them to creating a business out of them. Let’s dig in!
What Are Amazon Return Pallets?
Amazon Return Pallets is a program that Amazon created to deal with the issue of growing return rates that ultimately discouraged sellers from selling online.
Under this program, Amazon auctions overstocked items and custom items to sellers at highly discounted prices.
It helps businesses recover the losses from customer returns and, at the same time, creates a market for reselling these products.
Since any business owner can bid for the Amazon Return Pallets, the Return Pallets marketplace has grown tremendously. Let’s see how these Return Pallets are impacting business owners.
How Do Amazon Returns Impact Sellers?
According to estimates, approximately 5-10% of online sales come back as customer returns. This percentage is much lower when it comes to physical store sales. (source)
Though in my personal experience I have been able to reduce my returns to around 4-5%, with proper listing information and other tricks up the sleeve.
And what I have observed is that it increases after holiday season since amazon provides longer return period of 90 days for holiday season purchases.
The main reason behind this is easy returns offered by major e-com retailers. Easy return policies might work well with customers and increase the trust in the company among customers, but they can be a source of loss for sellers.
To help the sellers recoup some of these losses, Amazon Return Pallets becomes an excellent opportunity to buy and sell heavily discounted products; turning customer returns into a profitable business niche.
Where Do Amazon Returns Go?
With the increase in Amazon’s net sales, there has been a proportional increase in the number of returns by customers.
But the question is: Where do these returns go?
It is a general perception to think that these returned items are stocked back and sold by the seller again. However, most of the customer returns are not put back in stock.
Amazon has a few ways of dealing with returned items:
ResellingIf the product's condition is good and has no defects, the seller resells the product on the platform. However, the products returned due to some fault or in poor condition cannot be resold, and Amazon handles them differently.
Disposing of as wasteThe customer returns that are defective, in poor condition, or cannot be resold in any form are disposed of as waste. These are simply thrown away along with other e-commerce waste that adds to major waste management issues.
Donating to CharityAmazon also donates a lot of customers' returns to charities. If the customer returns are not reselling, these products are donated to different charities worldwide. Good360 is a leading partner of Amazon that helps distribute Amazon returns to those in need.
Sell to other companies or auctionAnother great way in which Amazon handles the customer returns is through the popular Amazon Return Pallets program. Under this, pallets of customer returns are auctioned at a discounted price. The sellers then sorted out these pallets and resold, refurbished, or disposed of them, as the case may be.
What Happens In Amazon Liquidation Auctions?
Amazon Liquidation Auctions are organized to auction off the Amazon Return Pallets. You can compare these auctions to the popular reality TV show Storage Wars.
The Amazon Liquidation Auctions happen online where Amazon sells customer returns, overstocked inventory items, or excess products not selling on its platform. These are auctioned at a heavily discounted rate for a limited period.
The Return pallets are an excellent opportunity for sellers to buy these stocks at a very bargained price. However, Amazon provides very limited information about the items in the pallet and their condition. So, a considerable risk factor is involved if you are bidding on the return pallets.
The pallets are a mix of customer returns, overstocked items, and damaged goods. You might end up with a really good pallet with great retail value or any defective products.
The Return Pallets auctions can be a fantastic way for third-party buyers to acquire these items at a very low price, but there is a caveat. If you plan on bidding in one of these auctions, ensure you get all your information right, review the pallet thoroughly, and then place a bid to ensure you get good products out of it.
Should You Buy Amazon Return Pallets?
Due to the limited information available regarding most of these pallets, most sellers are apprehensive about bidding on them.
You don’t need to shoot in the dark. Although there is little information available regarding these pallets, you can still review them and their items on the bidding page before placing a bid.
One important thing that you should consider here is that there are a lot of risks involved because you can’t ensure that the items in the pallet are of good quality. So always consider your profit margins before investing in this niche.
However, if you are willing to take the risk and invest your resources in sorting, refurbishing, and selling these products, this business can be a big profitable niche.
Why Can Amazon Return Pallets Be A Good Thing?
Many sellers can be apprehensive about the risks of buying and selling Amazon Return Pallets. However, these auctions can be a fantastic opportunity for resellers. Here are some great benefits that this program provides:
Heavy DiscountsSince these are restocked, excess, and customer return items, they are sold at a very low price. This makes buying these pallets a very cost-effective way of acquiring items for reselling. These products can then be sorted out and sold on a good profit margin.
Variety of ProductsIf you want to diversify your inventory, buying Amazon Return Pallets can be a cost-effective way to do that. You can find a wide range of products in these pallets, and the profit margins can be good enough to compensate for your time and resources.
Sustainable solutionThe Amazon Return Pallet auctions greatly help manage and reduce e-commerce waste. The products are refurbished and resold by sellers, which would otherwise be disposed of as waste.
Where To Buy Amazon Return Pallets?
There are a lot of different websites which host auctions for Return Pallets. Some of the popular and reliables ones are listed below:
Can you buy pallets directly from Amazon?
Yes you can , for that you have to register with them and you would need quite higher budget, which makes them not so easy for new buyer. You also would have to visit there fulfillment centers where this pallets are made available.
For more information you can email amazon on : email@example.com
They usually take 5 days to reply. And are quite slow with repsponses.
DirectLiquidation is an online liquidation marketplace that connects buyers with a wide range of products from major retailers and manufacturers. You can find a variety of inventory categories ranging from electronics and appliances to toys, apparel, and more. It is a great platform to find fantastic deals on return Pallets, including overstock, customer returns and refurbished items at discounted prices.
The platform is user-friendly and efficient, with easy-to-use search filters and a streamlined checkout process. DirectLiquidation.com is a reliable source for businesses and individuals seeking to purchase inventory for resale, personal use, or other purposes and is a partner with big brands, including Amazon, Walmart, and Lowes.
Liquidation.com is an online marketplace that offers various items, including customer returns and overstock from major retailers and manufacturers. It provides various buying options, including auction-style bidding and fixed-price purchases, and provides buyers with a transparent and secure purchasing process.
The platform also offers additional services such as shipping, logistics, and financing options to help buyers manage their purchases more efficiently. You can try Liquidation.com to purchase inventory for resale or personal use. It is very trustworthy and reliable.
Bstocksupply.com offers a wide range of return pallets and other liquidation merchandise from major retailers and manufacturers, including Amazon Return Pallets.
Bstocksupply holds various Amazon Liquidation Auctions with prices ranging from $300-$4000 per pallet. The Platform’s interface is quite similar to eBay and easy to use.
While this may not be a dedicated liquidation marketplace, Craigslist can be an excellent place to find return pallets for sale from local sellers.
Buyers can search for listings in their area and contact sellers directly to negotiate a purchase. You can even find a variety of Amazon Return Pallets from third-party sellers. However, you need to be very careful and thoroughly inspect the merchandise before purchasing through Craigslist is essential.
This reliable and popular option offers a wide range of Amazon Return pallets. You can browse through the diverse category of products and return pallets.
If you are from the United States, you will need a reseller certificate and a valid business registration to bid on this platform.
The website also offers a tool called “Amazon Profit Calculator,” which you can use to calculate the worth of your bid and your profits.
Liquidation warehouses are physical locations selling return pallets and bulk liquidation merchandise. These warehouses often offer discounts on large quantities of items, making them an excellent place to get return pallets for businesses seeking to purchase inventory for resale. You can visit these warehouses in person or buy merchandise online for delivery. However, it's essential to research the reputation and quality of merchandise before purchasing from a liquidation warehouse.
How much does it cost?
The cost of purchasing one return pallet can vary depending on the size of the pallet, the products in it, and the number of people bidding on it.
You can estimate the cost of one return pallet range from $200 to $4000 or more. You should inspect the information thoroughly before purchasing a return pallet.
What Is In The Amazon Return Pallets?
We have already discussed different websites that sell Amazon Return Pallets; let’s discuss what you can expect from them.
Most websites sell Return pallets in a wide range of categories. You can browse categories, including Clothing, Electronics, Books, Video Games, Footwear, Toys, and pet supplies.
You can view the list of items within the pallet and check their relevance before bidding. Here is an example of an Amazon Return Pallet from Liquidation.com
This Amazon return has a total of 33 items. You can see that the current highest bid is for $1,050, and the estimated retail value of the items in the pallet is given to be $11,166. You should pay attention to these specifications before bidding on a pallet.
In this listing, you can click “View Manifest” to view the detailed list of items in the pallet. The manifest lists the items' description, quantity, retail price, UPC, and ASIN number. This information is valuable, and you can check the relevance of items in the pallet by viewing the manifest.
Here is what the Manifest document of the above pallet looks like:
Some websites that sell return pallets may not provide a manifest or any photos of the items. However, websites like Liquidation.com give you detailed information about the products.
One important piece of information you will not find in manifests is the quality of the product. This means that you have to take a chance on that aspect. These items can be as good as new; some may need repairs, while some you must simply discard.
How can you sell items from Amazon Return Pallet?
Once you have purchased the return pallet, quickly bringing it to action and in the market is essential. This means that you need to work on the products in the pallet. Here is what you need to do:
Sort productsFirst, you must sort through the entire pallet and categorize its items. You need to first categorize them according to their condition and how ready they are for listings. You can then put them across different categories according to your store.
Check for defectsThe next step is checking for defective products and disposing of them. It will help you declutter your pallet and keep the ones with good value.
Pick out the ones that are ready to sellNow, you must pick out the products in good condition and ready to sell online. You can immediately list them in your store and start selling.
Pick out the ones that need refurbishingThe remaining ones could be refurbishing products. Finger out the cost of refurbishing and determine whether they are worth the time and money. Then you can begin the refurbishing process for these products.
Sell them online or offline, Craigslist, eBay, Social Media, Shopify, etc.Now that everything is sorted out, you can finally list the products on your online store and even list them over different social media channels.
Promote your productsThis is a crucial step for selling Amazon Return Pallets. You need to build your presence online and create trust among your customers. By promoting your products using different social media channels, including Facebook, Instagram, TikTok, etc., you can reach out to a broader audience. You can run ad campaigns and pay influencers to promote your products. This way, you can reach out to more people rather than solely depending on organic traffic for your store.
How much can you earn by selling Amazon Return Pallets?
Although buying and selling Amazon Return Pallets may seem like an easy, profitable niche, it is not all that simple.
But one can expect anywhere from 15-30% profitability on return pallets if done it right. Sometimes you might even end up with non saleable inventory. But there have been times when I have made a loss in the beginning due to buying items which don't have demand.
At the same time, there is no limit to how much you can earn by selling Amazon Return Pallets because that depends on how much time and effort you put into it.
Make a consistent supply chain and promote your products extensively online. Building a profitable business out of Amazon Return pallets will take time and resources but will give you back much more.
Estimating your profits from Amazon Return Pallets before buying
Before buying a Return Pallet, it is important that you check if they are still relevant to sell. Products that have very low demand or which will not give you sales will not to bid.
You can check the relevance of the products and your profits from reselling them before you bid on them. The manifest of the Return Pallets contain the ASIN number of each product.
The ASIN number is a code unique to each Amazon product. To check the product's sales volume on Amazon, you can copy the ASIN number of the product and use tools like Helium 10 to check its monthly sales.
Using the Helium 10 tool, you can analyze the sales chart and its trend over a period. Analyzing the sales will help you check if the product is still in demand. If the product has had good sales over the past month or year, you can easily resell it on Amazon.
Similarly, you can check the sales volume of other items in the crate and determine your profits accordingly. If the profits are good, you can bid on the pallet.
How to bid on Amazon Return Pallets?
To bid on Amazon Return Pallets, you can go to the Amazon Liquidation Auctions Website and follow the steps below:
- Create and register yourself if you are a new user.
- You can browse different categories, return pallets, and choose the ones you want to bid on.
- Enter your bidding amount and submit it.
- Amazon will notify you in case your bid is the highest.
- Once you are selected, Amazon will give you a time frame within which you will have to complete the purchase.
What is Amazon Mystery Pallet?
Amazon Mystery Pallet or Amazon Return pallets are overstock, customer returns, and excess products sold on Amazon Liquidation Auctions. These pallets are sold at a very low price, and only limited information is available before you bid on them. Since the information regarding the items is not revealed, it is often called a “Mystery Pallet.” Many third-party sellers and businesses buy the Mystery Pallet at heavy discounts, sort them out, refurbish them, and resell them in their own stores.
These Amazon Mystery Pallets are a great way to restock and diversify your inventory at a very low price. However, the item's condition is known after purchasing the pallet. Therefore, there are a lot of risks involved in this niche, and if you are not careful, you might lose a lot of money.
Where do Amazon Customer Returns end up?
Amazon Customer returns are sorted out depending on their condition. They are put back in stock and sold if they are in good condition. In case of a manufacturing defect or if their condition is bad, they are simply disposed of as waste. The third category is where Amazon cannot resell these items. In this case, Amazon auctions them on Amazon Liquidation Auctions, where they are sold at heavily discounted prices.
How to buy good quality Amazon Return Pallets?
To find good quality Return Pallets, make sure you do the following:
- Have good research: If you want to find good quality Amazon Return Pallets. Ensure you thoroughly check all the information about a pallet before you purchase it or place a bid.
- Buy only from reliable platforms: To get good quality pallets, buy from platforms or third-party sellers which are reliable and popular in the niche. We have listed a few of these companies above for your reference.
- Check your seller: Before buying from a seller, check the customer reviews. This will help you get a better idea regarding the quality of the pallet, and you can decide accordingly.
- Compare Prices: Don’t go about buying the first deal you get. Compare the prices of the same or similar pallets on and across different platforms to ensure you get the best deal available.
- Connect with the Seller: If you have any questions regarding the pallet, do not hesitate to contact the sellers and get as much information as possible.
- Review your Bid: Once you have finalized the pallet, review all the details and your bid before making a final offer. This way, you can cross-check all the information and ensure you got everything.
In the end
Amazon Return Pallets can be an excellent opportunity for sellers to expand and build their inventory cost-effectively. You can start small and slowly build it into a full-fledged business.
I hope this article helped you understand Amazon Return Pallets and how you can buy and sell them. Feel free to reach out if you have any questions, feedback, or suggestions. Stay tuned for more helpful content on Amazon!
Samrudha Salvi ‧ Author
With more than 5 years on selling on amazon, and helping 100s to get started on Amazon.