How to Buy and Resell Amazon Return Pallets: The Ultimate Guide
Have you ever wondered what happens to all those Amazon customer returns? A lot of those items end up bundled onto pallets and resold to entrepreneurs and small businesses looking to score big discounts. Buying and reselling Amazon return pallets can be extremely lucrative, allowing you to acquire all sorts of inventory at a fraction of the retail cost.
But diving into the world of liquidated Amazon returns does come with risks. You never quite know what condition the items will arrive in or whether you’ll actually be able to sell them for a profit.
That’s why in this 2500+ word guide, I’m going to walk you through everything you need to know to successfully buy and flip Amazon return pallets like a pro.
What Exactly Are Amazon Return Pallets?
Amazon return pallets, sometimes referred to as Amazon liquidation pallets, contain items that customers purchased on Amazon.com then later returned for various reasons.
When items are returned to Amazon’s fulfillment centers, they are inspected and sorted. Products deemed resellable are sent back into Amazon’s inventory as used.
However, a lot of returns end up being liquidated through Amazon Liquidations or sold to third-party liquidators and resold on pallet auction sites.
The reasons Amazon chooses not to relist certain returned merchandise themselves varies. Here are some of the most common reasons:
- Missing parts or damage – If an item is returned incomplete or with damage beyond Amazon’s quality standards for a warehouse deal or Amazon Renewed listing, it will get liquidated.
- Returns abuse – If Amazon suspects a customer is repeatedly ordering then returning items to essentially “rent” them, those returns will not be resold by Amazon to prevent abuse.
- Overstock – Amazon constantly needs to make room in their fulfillment centers for new inventory, so they liquidate overstock returns they don’t have space for.
- Packaging issues – If an item has been returned without proper retail packaging or labeling, Amazon will liquidate it rather than spending resources to repackage it.
Understanding why Amazon chooses not to relist certain returned items themselves can help you evaluate the contents and condition of liquidated Amazon return pallets.
What Kinds of Items End Up on Amazon Return Pallets?
The items found on Amazon return pallets can vary greatly, spanning many different product categories. Some of the most common product types include:
- Electronics – tablets, laptops, TVs, smart home devices, gaming consoles
- Home & Kitchen – small appliances, kitchenware, home décor, furniture
- Toys & Games – action figures, board games, outdoor toys
- Health & Beauty – makeup, skincare, haircare, fragrances
- Clothing & Shoes – apparel, footwear, accessories
- Media – books, movies, music, video games
- Grocery – shelf-stable foods, beverages, snacks
- Office Supplies – printers, paper, pens, organizing supplies
When browsing pallet listings, pay attention to the product categories mentioned to get an idea of what kind of inventory you’ll be acquiring. Some categories like electronics and toys tend to have higher profit margins when reselling.
Why Buy Amazon Return Pallets?
Buying liquidated consumer returns from Amazon offers some unique advantages both for resellers and personal shoppers:
Deep Discounts – Because Amazon return pallets are resold sight-unseen in bulk, you can usually acquire inventory at anywhere from 20-80% off retail pricing. Even with some duds and defective items factored in, the savings are significant.
Variety – Within a single pallet you may receive dozens of different items across several product categories, making for an exciting treasure hunt when opening your shipment.
Reselling Potential – Many items are returned in perfect working condition, still in unopened original packaging. These practically new items often resell very well, especially coveted electronics, toys, and video games.
Environmental Benefits – Giving pre-owned items a second life prevents products from immediately getting tossed in landfills. Reselling Amazon return pallets aligns nicely with eco-conscious values.
Now let’s explore all your buying options…
Where to Buy Amazon Return Pallets
Several reputable outlets have made a business of acquiring Amazon excess inventory and customer returns then reselling them on liquidated pallets. Here are some of the top places to purchase:
Amazon Liquidation Auctions
Amazon Liquidation Auctions is Amazon’s own official B2B liquidation resale program. Both individual pallets (“cherry pick”) and truckload wholesale quantities are sold weekly through timed auctions.
Pros
- Direct from the Amazon source
- Detailed manifests listing all items
- Can bid on specific pallets
Cons
- Requires business credentials
- Must pickup locally or arrange freight
- Auction format drives up pricing
Browse Amazon Liquidation Auctions Inventory
Direct Liquidation
As one of the largest liquidators of Amazon customer returns, Direct Liquidation resells pallets through both online auctions and direct “Buy It Now” purchase options.
Pros
- Huge selection of pallet inventory
- Established trustworthy resaler
- Deep discounts on bulk purchases
Cons
- No itemized manifests
- Must arrange freight logistics
- Condition grading accuracy varies
Shop Direct Liquidation Current Inventory
Other Online Liquidation Marketplaces
Several other reputable websites focused on liquidated wholesale lots also commonly carry Amazon customer returns. These include:
It’s worth browsing these sites in addition to Amazon Liquidation Auctions and Direct Liquidation to find the best pallet deals.
Amazon Warehouse Deals
Amazon Warehouse resells many customer returns directly through Amazon.com. While not sold in bulk pallets, you can shop returned/used items listing by listing.
Pros
- Convenient shopping directly on Amazon
- Detailed condition descriptions
- Free returns on most items
Cons
- Higher prices than liquidated pallets
- Limited quantity of each item
- No item variety mixing
When sourcing Amazon Warehouse Deals to resell, be sure to price items competitively compared to used prices on eBay and other secondhand sites. Margins tend to be tighter, but the convenience factor appeals to many buyers.
Browse Amazon Warehouse Deals Inventory
Facebook Marketplace
Don’t overlook Facebook Marketplace as another channel where small volume resellers often list Amazon return pallets for local pickup.
Pros
- Support small businesses
- No shipping costs
- Can inspect items in person pre-purchase by appointment
Cons
- Limited inventory
- Inconsistent pricing
-titles Mileage may vary on seller professionalism
Search Facebook Marketplace listings in your region for “Amazon return pallets” or “Amazon liquidation pallets” to see what deals might available near you.
How to Buy Amazon Return Pallets
Once you’ve selected a supplier marketplace, you’ll next need to determine the right purchasing volume and evaluate potential pallets for purchase.
Buying Pallets In Bulk vs Cherry Picking Single Pallets
Should you invest in an entire truckload of pallets sight-unseen or start out buying single curated pallets here and there? There’s arguments on both sides.
Benefits of Buying Truckload Quantities:
- Much cheaper per pallet pricing
- Often 1,000+ total items to resell
- Ability to stock up for selling all year long
Benefits of Cherry Picking Individual Pallets:
- Lower upfront investment
- Easier storage logistics
- Can confirm exact contents before purchase
When just starting out buying Amazon return pallets, cherry-picking individual pallets is likely the smarter move. This allows you to get a feel for the buying process, average contents/condition, and expected selling prices before scaling up.
It also prevents quickly getting overwhelmed both with initial costs and managing a tidal wave of inventory to process. Once you gain experience and confidence inspecting manifests, transitioning into occasional truckload volume purchases makes sense.
Evaluating Pallet Listings and Manifests
Whether buying a single pallet or an entire truckload, be sure to thoroughly evaluate all provided info before making a purchase. Key details to review:
Item Category Mix – Electronics and toys have the best resale potential and value density. Prioritize pallets heavier on those merch groups.
Brand Names – Pallets listing top brands like Apple, Samsung, Nike, etc signal contents likely purchased at higher retail originally.
Unit Counts – More units per pallet spreads risk across more inventory vs just a few big ticket items.
Manifest Details – Specific item descriptions, retail prices and expected condition details minimize surprises upon delivery.
Seller Ratings/Reviews – Highly rated liquidators with positive buyer reviews help confirm pallets match advertised condition.
Load Photos – Whenever possible examine supplier-provided photos of actual pallets to gauge contents more accurately.
Using all these data points, target pallets most stack ranking across these evaluative factors within your purchasing budget.
Placing Orders
When ready to pull the trigger on pallets, carefully review purchasing terms on fulfillment:
- Pricing – Are shipping fees disclosed? Any taxes/import duties? Get an all-in cost estimate.
- Delivery – Understand when shipment will arrive and have capacity to take delivery.
- Inspection rights – Check policies around refusing damaged pallets or forcing refunds for misrepresented goods. Know your buyer protection rights.
As when making any sizable inventory acquisition, keep detailed records of all pallet contents as advertised, complete purchase orders, shipping confirmations, inspection results upon receipt, and any returns/refund activity needed.
Tight purchase protocols and documentation will save major headaches down the road in this business!
Receiving and Processing Pallets
The day(s) your pallets arrive are intense! Come prepared to efficiently receive goods and start processing for resale.
Stage space to unload boxes and break down pallets safely. Have packing supplies, labeling printers, and camera/scanner gear ready. Setup an assembly line to identify, test, photograph and log items into inventory systems.
Recruit family or friends as needed for extra help handling surges of incoming boxes. Offer pizza and drinks to speed sorting motivation!
As pallets get unloaded:
- Handle goods with care to avoid damage
- Confirm goods match advertised manifests
- Photograph box labels showing SKUs/descriptions
- Check individual item condition closely
- Research current used sale prices online for each
- Test electronic items thoroughly for full functionality
- Group like-items together by category in staging area
Be sure to accurately log every inventory item acquired into your sales platforms with purchase costs per unit. This sets you up to run profitability reports later and supports tax write-off eligibility.
Now it’s time to get selling!…
Reselling Amazon Return Pallets
To maximize profits when flipping Amazon return pallet inventory, leverage multiple sales channels with targeted pricing strategies for each.
Choosing the Best Resale Platforms
Consider listing different products across these popular resale sites:
eBay – Great for coveted electronics, toys, video games and niche collectibles with vibrant buyer demand. Allows promoters to redirect some sales tax obligations.
Facebook Marketplace – Perfect for heavier items local buyers can pickup saving shipping costs, like appliances or furniture. Meet interesting folks in your community!
Craigslist – Best for quick cash flips of lower-value mixed lots locally using their efficient bulk posting tool. Less seller protection than other platforms.
Amazon FBA – Reselling returned Amazon items back onto Amazon can work well for replenishable grocery and health items. Requires two years of receipts.
Flea markets / Garage sales – Useful for unloading lower-value items in bulk that would waste time listing individually online. Cash buyers only.
Donations – If items are truly worthless or safety defective dispose responsibly. Shelters often welcome some open box goods in fair condition. Tax deductible!
Choosing the best sales channels per item ensures higher turnover velocity to keep cash flowing while platforms compete for buyer attention on your behalf.
Pricing Inventory to Sell
Smart repricing strategies also help turn pallets into profits quickly:
Leverage manifest data – The original retail pricing for items listed on manifests informs reasonable asking prices based on age and condition.
Research current rates – Pricing comparably to current used listing rates on eBay and other platforms positions your items competitively.
Discount new open box goods – If items were clearly unopened returns, discount 10-30% below original retail pricing to entice deal seekers.
Price lower cost lots – To motivate bulk purchase discounts, create mystery box listings priced at 60-75% off total manifest retail values.
Run promotions – Schedule temporary 15-25% off sales on slow moving items to boost listing views and watchers. Discount older stock seasonally.
Adjust prices over time based on market demand signals until reaching a selling threshold. Some inventory may sit longer term. Manage cash flow by balancing high velocity and higher cost items in the short term.
Dealing With Defective Returns
Despite best inspection efforts, some percentage of items in every pallet will arrive broken or defective purely due to the liquidated nature of these bulk goods. Here’s how to handle snafus.
Request replacement items – If damaged goods exceeded disclosed defect rates advertised, request comparable replacement product value through seller-advertised refund terms.
Sell items for parts/repair – List non-working items at deep discounts clearly labeling parts may have reuse value for crafty tech wizards.
Scrap for materials – Educate buyers that non-working electronics still contain gold, copper and other precious metals sometimes worth extracting through proper eCycling channels.
Dispose safely – If truly toxic and unsafe for resale, contact local household hazardous waste programs to discard properly without environmental impact.
While defects are unavoidable, following environmental best practices for disposal and considering creative alternative selling opportunities first minimizes loses.
Maximizing Profits Long-Term
Beyond effective inventory pricing and platform management, a few additional best practices really ramp total profits over the long run:
Build buyer loyalty – Offer bundle discounts for return customers, personalized email deals and top notch post-sales support. Loyalty breeds consistency.
Provide free shipping – Absorb small shipping costs on higher dollar items to appear more competitive in listings searches.
Upsell product repairs – Consider investing side profits into cost-effective repairs on certain electronics to premium refurbish unsold stock lying around.
Practice low overhead – Keep fixed costs extremely low. Operate from home without paid staff or commercial warehousing to improve margins.
Reinvest & scale – Let early pallet sale profits fund larger truckload buys over time. Think BIG!
If you feel overwhelmed as a solopreneur consider hiring virtual assistants specialized in listing support, buyer messaging and shipping fulfillment to alleviate tedious tasks that distract from running the overall business.
Through diligent upfront pallet inspection, competitive repricing maneuvers, and leveraging alternative sales channels, successfully flipping Amazon customer return pallets offers tremendous profit potential.
Hopefully these insider tips give you the confidence to take advantage of the huge discounts available buying liquidated Amazon inventories. Just be sure to start out slowly cherry-picking pallets, learn as you go, and reinvest profits to scale sales steadily over time to build a wildly successful side hustle business!
