How to Buy and Resell Amazon Returns
Buying and reselling Amazon returns can be a lucrative business if you know what you‘re doing. Here‘s an in-depth guide to help you get started.
Why Buy Amazon Returns?
There are several compelling reasons to buy Amazon return pallets:
Profit Potential – You can often acquire returns at a fraction of the original price. Resell at a markup for strong profit margins.
Inventory – Returns pallets provide instant inventory to resell online or in a physical store. Great for new resellers.
Product Variety – Return pallets contain all kinds of new and used products. From electronics to apparel. Diversity lowers risk.
Discounted Prices – As returns are often new-in-box but were opened or damaged, liquidators sell them at steep discounts.
Quality Items – Many returned items are in perfect working condition. Some may need minor repairs or cleaning before resale.
Where to Source Amazon Return Pallets
You can source returns from various channels:
Direct Liquidators – Companies like Liquidation.com purchase returns straight from Amazon to resell. Reliable, direct source.
Liquidation Auctions – Sites like Bstock allow you to bid on Amazon return pallets in auction format. Can provide good value.
Online Marketplaces – Websites like Amazon Outlet, Woot and Liquidation.com have sections dedicated to Amazon returns.
When selecting a vendor, vet their reputation and inspect merchandise thoroughly before purchasing.
How to Buy Amazon Returns: Step-by-Step
Follow this process when acquiring Amazon return pallets:
1. Understand Amazon‘s Return Policy
Amazon offers free returns within 30 days of delivery for most products. Items get sent back to Amazon, inspected, then resold if in sellable condition.
2. Inspect Merchandise Thoroughly
Carefully examine items for defects, missing pieces and signs of wear/tear. Ensure parts/accessories are present. Consider costs of repairs.
3. Buy Returns in Bulk
Purchasing full pallets allows you to get better per-item pricing. But consider required storage space and resources to process volumes.
4. Evaluate Pricing and Payment Terms
Pricing varies based on product condition (new, used, refurbished). Check seller payment terms – some only accept wire transfers or PayPal.
5. Review Shipping Options
Factor shipping costs into pricing. Some sellers offer free shipping or faster expedited shipping for added fees.
Challenges to Consider
While buying Amazon returns can generate big profits, some key challenges include:
Inconsistent Quality – Condition and sellability of returns can vary widely. High return rates.
Shipping Times/Costs – No Prime shipping. Delivery can be slow/expensive going through 3rd party.
Liquidating Unsold Items – Have a plan to dispose of or donate items you can‘t resell.
Inspection Burden – Checking every item in large pallets is labour intensive and time consuming.
Reselling Amazon Return Pallets
To resell your newly acquired inventory:
Online Platforms – Sell items individually on sites like Amazon, eBay and Facebook. Allows higher margins but more effort.
Sell to Wholesalers – Large buyers will purchase entire pallets, but at lower prices. Saves handling individual sales.
Be Transparent – Disclose any defects, damage or missing parts when reselling. Build reputation as honest seller.
Make sure to have a reseller permit/license to legally operate without collecting sales tax.
Selling Amazon returns offers great profit potential for SMBs and entrepreneurs but has risks to manage too. Do thorough research before getting started. With some diligence around sourcing, inspection and selling, this emerging ecommerce model can produce excellent results.
