Did you know that when products are returned to Amazon, they don’t get returned to the original sellers? Instead, they’re bundled into return pallets and sold to third-party sellers at low prices. As a seller, this presents a great opportunity for you to resell a pallet-load of retail items and maximize on sales. Since you can obtain Amazon return pallets at a reduced price, you can sell them at a regular retail price for a much bigger markup!
If you’re looking to get started on buying and reselling return pallets, then you’ve come to the right place. In this article, we’ll cover everything there is to know about Amazon return pallets, including what they are, where and how to buy them, and some helpful tips on how to successfully resell them. Let’s get started!
What are Amazon Return Pallets?
Amazon return pallets (also sometimes referred to as Amazon liquidation pallets) are essentially crates of products that have been returned by customers for various reasons, including product defects, buyer’s remorse, and damaged packaging. The return pallets usually contain a variety of items from different product categories, such as electronics, clothing, household items, and more.
When items are returned to Amazon, sellers often inspect them to determine their conditions. Items that are still in sellable condition can be repackaged and sold through “Amazon Warehouse Deals” at a discounted price. However, returned goods that are damaged or have minor defects may not be able to resold as new. Amazon usually organizes these products into different pallets and sells them to large liquidation companies or individual customers willing to make bulk purchases at discounted prices.
When it comes to buying Amazon return pallets, there’s no guarantee about what items you’ll get. You may find brand new products, broken products, spare parts of products, or even empty boxes. However, if you find ways to source high-quality items (e.g. examine the pallets before making a purchase), buying liquidation pallets can prove to be quite profitable.
Pros and Cons of Buying Amazon Return Pallets
Before you make any decision to buy returned items, you should consider the advantages and disadvantages. Below is a table comparing the pros and cons of buying Amazon return pallets to help you decide if this is the right move for you and your business.
| Pros | Cons |
| Potential for higher profit margins | Mixed conditions of items and risk of damaged/unsellable products |
| Lower costs of product sourcing | Can be time consuming to sort and categorize products |
| Cost-effective way to start a business with low upfront costs | Uncertainty in profits with variability in products and market demands |
| Easy reselling opportunities with many online platforms and offline methods | Products may not have warranties |
| Provides diverse inventory (return pallets contain products from various categories) | Limited scalability with more ASINs and product listings and lower inventories |
| Allows you to find hidden gems that you never would have considered selling before | This particular business model requires more time and effort compared to selling via the FBA model |
How to Buy Amazon Return Pallets
Amazon return pallets can be a profitable investment for your business, but this doesn’t mean you should neglect proper research beforehand. For example, if you’ve ever had questions like “Where can I buy Amazon return pallets?” or “How much are Amazon return pallets?”, you should make sure that you have information on these topics before buying anything. In this section, we’ll go over everything you need to know about the buying process and where to find return pallets.
Research and Preparation
As you’re researching Amazon return pallets, the first important thing to know and understand is how pallet auctions and the purchase process work. Below is a general process of how a typical buying process might look:
- Amazon will list pallets for sale through an auction on online sites.
- As a recommendation, you should thoroughly research different platforms and companies that offer Amazon return pallets. Look for reviews and testimonials from previous buyers to gauge their reputation and the quality of their services. Doing proper research also allows you to compare prices and get the best deals.
- You should also set a budget for yourself to help narrow down your options and make more informed business decisions. However, keep in mind that cheaper pallets might come with a higher risk of damaged or unsellable items. Ultimately, the price of return pallets vary based on the contents, condition, category, and seller.
- Choose an auction platform and participate in the auction. If you’re able to, you should inspect the pallets before making a purchase to look for any visible damage or signs of wear. This will allow you to identify the pallets in best condition and assess their potential resale value. If you’re not able to inspect pallets in person, you can ask the seller for detailed photos or descriptions of their conditions.
- Once you’ve secured a pallet in an auction, you then pay for the pallet and include additional information necessary to complete the purchase. Double-check the shipping details and make sure you understand the seller’s return policies in case of potential issues. It’s also a good idea to keep a record of your transaction and any communication with the seller for future reference.
- The pallet then gets shipped to you. When the pallet arrives, you can go through its contents and sell whatever you can. Items that are in good condition will be easier to sell, but for items that are broken, you can try to refurbish them before reselling. For items that can’t be fixed, you can try selling their individual parts instead. Additionally, undamaged original packaging and boxes can sometimes be sold on online sites like eBay.
- You’re now able to market and sell the items. Depending on your business model, you can sell them in a physical store or through an online marketplace. To attract potential buyers, make sure you provide high-quality photos, write detailed product descriptions, and price the items competitively.
Another important thing to know before heading into an Amazon pallet auction is what you need to buy a return pallet.
- An approved account setup (depending on the auction site you use).
- A valid reseller certificate. You will need this to resell your items and avoid paying sales tax on the pallet.
- Extra information to complete the order, make the payment, and finalize shipping (if you win the bid).
Where to Buy Amazon Return Pallets
There are a number of places to find Amazon return pallets for sale. Below is a list we’ve compiled of some of the most common platforms you can find return pallets on.
1. Amazon Bulk Liquidations
Did you know that there’s an Amazon liquidation store? Amazon introduced its own bulk liquidations platform where resellers can find overstock pallets in new and unopened conditions. Products sold on this platform are from Amazon itself or numerous third-party sellers.
Purchasing a pallet is straightforward because it’s essentially just like buying on Amazon. You simply select the item you want, check out the listing page, and checkout. Each listing page contains information about the item, quantity, and price.
The program is still in beta so there may be limited lots available, and you’re only allowed to purchase one lot per order. As stated on the website, all purchases are final and not eligible for refunds.
2. BULQ
BULQ is a liquidation company headquartered in the United States that offers one of the largest selections of Amazon return pallets currently available. Resellers can purchase pallets from $100 – $10,000 depending on the contents, product category, and seller. You can easily browse the clearance section without login, but in order to make a purchase, you need to register on the platform and provide resale certification during the transaction.
While this platform is relatively easy to use and frequently receives new pallets for sale, their shipping costs can be pricey for resellers. In some cases, a flat shipping fee of $30 is applied to purchases, but in most other cases the shipping cost varies based on factors like weight, palette size, and delivery address.
3. Direct Liquidation
Direct Liquidation partners with Amazon, Target, and Walmart to auction liquidation pallets. This platform gives you the option to narrow down your search by store and brand, allowing you to select the exact items you want and make your search process easier.
While Direct Liquidation doesn’t guarantee product condition, they only work with reputable selling platforms, so you can be sure about the authenticity of what you receive. What ultimately sets this liquidation site apart from others is their exclusive partnership with prominent retailers and manufacturers in North America. This allows them to keep costs lower since there are no intermediaries, giving customers access to higher quality items.
4. 888Lots
888Lots is one of the longest-running liquidation companies that offers low prices for individual or bulk items. You can customize your lots and choose the exact items you need. Or, you can purchase an existing lot, which includes a detailed list of the items contained along with their conditions. The platform also provides reviews and sales ranks of items to help you evaluate their profitability.
In order to purchase from the platform, you need a valid resale certificate permitting you to sell to US customers.
5. BStock
BStock is partnered with and hosts the official Amazon Liquidation store. The platform offers a range of categories catered to small and large businesses, so you can find plenty of pallets at low prices. Like many other platforms, you need a resale license to create an account and start bidding. Once you’re approved, you can begin your reseller journey and bid on various listings.
How to Evaluate Pallet Contents
Once you’ve acquired pallets to resell, the next important step is to evaluate the contents and assess their condition. This will allow you to determine which items are sellable and how you should competitively price them. Below are some tips to keep in mind for when you evaluate your items:
- Inspect the pallet’s condition: Check for broken boards, loose nails, excessive wear and tear, or signs of moisture damage on the pallet itself.
- Check product conditions: Visually inspect the products on the pallet for damage, incorrect items, or signs of contamination.
- Examine the packaging: Inspect the boxes, crates, or other packaging for damage like dents, tears, punctures, or signs of improper sealing.
- Verify the quantity: Physically count the number of items on the pallet to confirm you’re receiving all intended items listed on the paperwork. For larger quantities, you can perform random spot checks to verify the quantity.
- Check the pallet labels: Make sure the pallet is properly labeled with the necessary information such as product code, quantity, batch number, and any special handling instructions.
- Review the packing slip or purchase order: Compare the information on the pallet labels to the packing slip or purchase order to ensure accuracy and consistency.
Tips to Successfully Resell Amazon Return Pallets
The next step after purchasing Amazon liquidation pallets is to resell them and generate profit for your own business. Below are some tips to help set you up for success:
- Start small: While it can be tempting to buy several pallets right away, especially if they’re cheap, you should start with one or two pallets first. This will allow you to get a feel for how the buying, sorting, and selling process works. Once you feel more comfortable with how things run, you can slowly increase the number of pallets you buy.
- Research your intended product markets: If other resellers are reselling the same items, you’ll find that high competition will hurt your profits. Make sure you properly research your product markets beforehand and think of marketing strategies to help your products stand out among other resellers. Using a third-party market research tool like Viral Launch’s Market Intelligence tool can be helpful by providing valuable market trends and insights.
- Sort and categorize your items: Organizing the items within a pallet will help you stay organized so things are easier to find, list, and sell on various platforms. You can categorize products by type, condition, or other relevant factors you find useful.
- Create compelling listings: Having a compelling and informative title and description for your listing is important to attract potential buyers and drive revenue. Highlight key features of your products, make descriptions scannable, and focus on product benefits.
- Optimizing listings for SEO: In order to attract potential buyers, you’ll want to increase your online visibility by optimizing your listings for SEO. This will make it easier for customers to find your products and increase their chances of making a purchase. Feel free to check out Viral Launch’s Listing Builder tool and Listing Analyzer tool to help maximize your online visibility with various SEO elements.
Where You Can Sell Amazon Return Pallets
There are a number of different online and offline places you can sell return pallets.
1. Online Marketplaces
Platforms like Amazon, eBay, and Facebook Marketplace are common online places to resell items. Not only is it relatively easy to advertise and list products, but you’ll be able to reach a wide audience of buyers on these sites as they each have millions of active buyers worldwide. However, one thing to keep in mind is the selling fees you may need to pay if you decide to use any of the platforms. For example, Amazon charges a fee of $39.99 per month for a Professional Seller plan, but there are a number of other fees depending on your product category, fulfillment strategy, and other variables.
If you decide to resell on Amazon, check out our guides on Everything You Need to Know About Reselling on Amazon and Amazon Retail Arbitrage for extra information on how to resell on the platform.
2. Local Sales
Another great way to resell return pallets is to look into local sales, such garage sales, flea markets, and consignment shops. With this method of reselling, since your outreach to potential customers will be limited based on your location, you’ll need to put extra effort into your advertising to attract buyers. You can post online ads for those within your area, or you can put up physical flyers around your area to help generate interest in your local sale.
3. Speciality Platforms
For more specific product categories, you can sell on platforms catered to certain items. For example, Etsy emphasizes on the selling of vintage items and craft supplies which typically fall under jewelry, clothing, home decor, art, and more. Another example of a specialty platform is Depop, which is a social media-based marketplace where users can buy and sell secondhand clothing, shoes, and accessories.
Fulfillment Options
The final step in selling your Amazon return pallets is to ship them to your customers. As we mentioned before, you’ll need to pay shipping and seller fees depending on the platform or method you use to ship your items. To reduce your packaging and shipping costs, consider the following tips:
- Choose lighter packaging materials when possible
- Use packaging that fits the product more closely to reduce unnecessary space and weight
- Minimize empty space in boxes with packing peanuts or other fillers
- When applicable, use flat-rate shipping options for predictable pricing
- Get quotes and compare rates from multiple carriers to find the best pricing for your business needs
- Negotiate carrier contracts to get better rates
- Leverage batch shipping and group multiple orders together when possible
If you’re thinking about selling your items on Amazon, there are two fulfillment options you can use: FBA and FBM. Fulfilled by Amazon (FBA) is a service offered by Amazon that allows sellers to store their products in Amazon’s fulfillment centers. When a customer places an order, Amazon handles all aspects of logistics (selecting, packaging, and shipping products) on behalf of the seller. Additionally, Amazon handles customer service inquiries which many sellers find helpful in easing some of their burdens. If FBA sounds like a more viable option for your business, learn more about how to ship to Amazon FBA with our guide.
The other fulfillment option you can choose is FBM, or Fulfilled by Merchant. This method puts all the control back into the hands of the seller, so they’re responsible for handling all aspects of logistics. In other words, the seller is responsible for storing their own inventory and fulfilling orders themselves. While this option has fewer Amazon fees and lower upfront costs, sellers should be ready for the extra responsibilities of handling orders and customer service inquiries.
Pro Tip: Leverage Viral Launch’s free Amazon FBA calculator tool to help determine all your FBA fees and projected revenue.
Final Thoughts on Buying and Selling Amazon Returned Pallets
Buying Amazon return pallets and selling them can be quite profitable. On good-quality pallets, you can find hidden gems and get great markups. While there is no guarantee that you’ll always end up with a good pallet, there are ways to reduce your chances of getting stuck with a bad one. As long as you do your research beforehand, budget properly, and conduct careful inspection, you can keep your losses low and maximize on profits.
Start a free trial with Viral Launch today and see how our array of seller tools can help you succeed in your online selling endeavors!
