Stuff is returned all of the time to Amazon and not everything makes it back to the original seller. This stuff ends up on pallets and goes up for sale by a liquidation company. Amazon partners with several liquidators, so you have a few options on who you purchase the pallets from.
The pallets are generally around a few hundred dollars, and you get several boxes packed full of returned items. Sounds like a win for everyone, so let’s get started with the key Amazon return pallet purchasing steps.
Compare the Various Platforms
Amazon has partnered with a few liquidation companies and this is good news for you. With more options, you’re increasing your chances of getting a great deal. Something to keep in mind is not all platforms are equal. While Amazon is pretty careful about its partnerships, this doesn’t mean things can’t fall through the cracks. Simply put, some liquidation companies are better than others.
Don’t worry, this doesn’t necessarily affect the pallet’s price, only the level of service you can expect. Some liquidation companies offer pallets through an online auction. For some businesses, this can mean savings if they’re willing to invest the time in the auction. Other platforms operate on a first-come, first-buy basis. You pay the pallet’s listed price
You may also be able to enjoy additional savings through some platforms. Repeat consumers may be able to enjoy deeper discounts. Think of this as a type of loyalty program. The more times you purchase a pallet the greater your discount. This is something to consider if you’re planning on using Amazon return pallets as a steady source for inventory.
Start Small
After narrowing it down to one liquidation company, don’t go overboard on your first order. Starting small simply makes good business sense. You’re not entirely sure what’s included in an Amazon pallet. Most liquidation companies don’t provide an inventory list. All you know is the product category.
You don’t want to make a large investment before you have a better understanding of how the process works. You also want to see if quality meets your standards. After all, you don’t want to start selling inferior products, and this can affect your brand’s reputation. You want to be known for selling high-quality items at affordable prices.
You also don’t know how well the pallet items are going to sell. By starting small, you can get a better idea of the market without investing a lot of company resources. If everything goes smoothly, you can start purchasing return pallets regularly.
Electronics Aren’t Always Good for Bottom Lines
Amazon return pallets are often filled with electronics. Remember, this is a booming business, so there’s bound to be plenty of returns. Investing in a pallet filled with electronics for a few hundred dollars can seem like a great deal. There’s even the possibility of significant savings.
As tempting as electronics can be, there are a few downsides to consider. Remember, the reason you’re getting these items is because consumers returned them. Typically, this means the electronics aren’t working properly. Some may even be non-functional.
If you’re in the business of refurbishing electronics, this type of pallet can be a good investment. Your team will have plenty of items to work on and you have inventory you can sell at a fraction of the normal price. If you’re not prepared to refurbish electronics or can’t afford to take a potential loss, this type of pallet may be one you want to avoid.
Pay Attention to Shipping Costs
You can’t keep the Amazon return pallet at the liquidation company’s warehouse. They’re going to ship it to the address you provide. This means you’re looking at shipping costs and these can get expensive.
As you’re researching the various liquidation platforms, check their shipping rates. Some platforms include shipping in the pallet price, but not all. How the liquidation company ships the items on the pallet will also affect shipping.
For example, if they send one item at a time, you may end up paying for 50 boxes separately. Try to work with a platform that uses as few boxes as possible. Yes, weight can increase shipping costs but not as much as when you’re receiving 50 separate items.
Are You Ready to Invest in an Amazon Return Pallet?
Investing in an Amazon return pallet can be good for your business. You get inventory at below-market costs, even with shipping charges. Before you purchase a pallet from Amazon, do some research and think about what you can sell and what may end up sitting on your shelves.
