Every kind of store experiences customer returns. Approximately 8.89 percent of products are returned in brick-and-mortar stores, with the number shooting to at least 30 percent for online stores. This return rate results in unforeseen shipping and processing cost for sellers that sellers need to account for.
As one of the biggest retailers in the world, Amazon experiences an average return rate between 5 to 15 percent due to its generous return policy. Have you ever wondered, however, what happens to these products once they’ve been returned?
You would be surprised to find out that Amazon sellers and retailers don’t put a majority of these returned products back on sale. Instead, they opt for other ways to sell them, and that is where Amazon return pallets come in. Here is what you need to know.
What is Amazon Return Pallets, and Where Can You Buy Them?
Amazon return pallets are essentially chunks of Amazon sold entirely unseen to sellers. These pallets typically contain various items, including appliances, furniture, apparel, accessories, and consumer electronics.
When items get returned to Amazon, a massive chunk of these gets packed into return pallets, especially if the seller only deals in new things. These pallets typically contain items in excellent condition, and you can easily sell them for a decent profit.
You can purchase a return pallet from a reliable Amazon liquidation company that buys these pallets from Amazon. They typically have an “estimated retail value” displayed on them and are auctioned off.
A few strategies can help you make a lucrative amount of money with Amazon return pallets, and these tips and tricks can definitely help you get there.
Repair and Refurbish
If you want to sell something, fixing it is a given. Unfortunately, most people don’t go beyond that.
Selling a product that is fully packaged will end up making you a lot more money than one that is functional and unboxed.
Most items in Amazon return pallets have damaged packaging or don’t have the complete accessories. You need to ensure that if you are selling something, it needs to be complete.
Have a look at eBay, where you’ll often find empty boxes for most merchandise and repackage the product in high-quality original packaging.
Sell in Bundles
Many people often purchase broken computer equipment and sell it for parts. However, it is an excellent idea to do the reverse. This means that it is much better to sell products in bundles to increase their overall value.
In fact, you can charge up to a 25 percent premium for a fully operational computer. Additionally, you’ll be selling more of your inventory in one go than having to sell it in parts. Bundles are always more valuable than individual products since you are helping your customer save time, too.
Don’t Miss the Accessories
Consumers often return products like electronics because the box doesn’t include a mentioned accessory, such as a charger or headphones. These accessories can easily be purchased separately on eBay, for instance, and can boost your asking price significantly.
You need to understand that the more accessories you miss out on, the more it’ll look like it’s used. With all the accessories included, you can sell products as “like new” for a much higher price than offering that’s incomplete.
Inspect the Items
When you receive your pallet, you need to ensure you are inspecting the products thoroughly before reselling them. Most items will fall under one of four categories:
- Used: Functional items with visible signs of wear and tear, such as dents or scratches.
- New open-box: Items in perfect condition with open packaging.
- Refurbished: Items that have been inspected, repaired, if required, and repackaged.
- New factory-sealed: Brand new items that are still in their original boxes and wrapping. These items have never been opened and are in perfect condition.
It is crucial to remember that you can’t include the original manufacturer’s warranty with these resold items. These warranties will be invalid, so be careful about not missing them when selling the products.
Be Careful About Electronics
Buying electronics in Amazon return pallets involves a hefty investment in terms of time and money. Not only is it costly, but you’ll need to try and test each product to ensure it is working properly.
After this, you need to find viable markets where you can sell off the electronics that aren’t functional. If you can’t find a market like that, then you’ll need to take the product apart and sell off its parts instead. It is a lot of effort so make sure you are ready for it.
Sell the Inventory Quickly
As a seller, it is tempting to wait to sell your products at the highest price possible to generate maximum profit. While this is an effective pricing strategy in general, it may not work as well for Amazon return pallets.
Instead, it is a better idea to focus on volumes rather than maximizing the dollar amount from every single item. Essentially, this is the strategy you should go for when you are looking to sell a large number of items since you’ll be able to earn more profit from all products sold.
Find a Reliable Seller
Just like any other shopping experience, it is crucial to research the liquidation company you are considering buying from.
In most cases, liquidation purchases are final, so it is always a good idea to go through online reviews that’ll give you insight into the quality of the products, returns, policies, and the company in general.
Additionally, it is also essential to research in general and look into different liquidation platforms that other people are using to purchase their Amazon return pallets. The more information you have, the better.
Final thoughts
Making money off of Amazon return pallets can be a fun and exciting process. You don’t need any complex skills to start and, as long as you research and are meticulous about what you are selling, you’ll find it an excellent cash opportunity.
While a lot of it does depend on luck and what condition you are getting the items in, with strategic thinking, you’ll be making money through Amazon return pallets in no time at all.
