It’s a very common scenario for Amazon orders to be returned by sellers. As a seller, you would be knowing that a buyer can return products within 30 days. There are multiple reasons for returns like the wrong style/color being shipped by the seller, the buyer not being available to collect the order, a product being defective, and so on.
The average return rates vary according to the product category.
When a product is returned, Amazon charges a fee to the seller for the returns. However, many sellers do not always take them back, which means that they remain at Amazon’s warehouses. Amazon may either sell the products to liquidation companies, or individual customers or create customer return pallets out of them.
Now, what are the Amazon customer return pallets in the first place? Let’s explore.
What are Amazon Customer Return Pallets?
Amazon uses customer or liquidation pallets in the form of large wooden crates to sell returned products. Buyers may purchase their pallets for a chance to obtain products that they find useful, like chains, or to sell the products for a profit. However, there is no defined category for what the products in the pallets may be, as the items might can range from shoes to apparel to defective electronic equipment like laptops. Hence, these pallets are often also termed mystery or unclaimed Amazon pallets.
Why Buy Amazon Customer Return Pallets?
Purchasing Amazon Customer Return Pallets can have several benefits:
Cost Savings: Customer return pallets are often sold at a fraction of their retail value, allowing you to acquire merchandise at a significantly lower cost.
Sustainability: By purchasing customer return pallets, you contribute to reducing waste. Many of the products in these pallets are still in good condition and can find new homes rather than being discarded. It’s a more sustainable approach to handling excess or returned inventory.
How Much Do Amazon Customer Return Pallets Cost?
The price of an Amazon customer return pallet usually ranges from $300 to $400, but it varies according to the program or liquidation company offering the pallet.
Where To Buy Amazon Customer Returns In 2024?
You can either purchase customer return pallets through an Amazon-based program or a liquidation company. Read more below.
Amazon Based Programs
These Amazon programs offer customer pallets for sale:
-For buying used merchandise, Amazon Merchandise
-To purchase refurbished items, Amazon Renewed
-For buying overstock inventory, Amazon Outlet
Amazon Liquidation Companies
Amazon Liquidator Auctions
In 2018, B stock and Amazon launched Amazon Liquidator Auctions. You can bid on overstock lots for all items for all sizes. You can filter products based on their condition like brand new, used, mixed, etc. To participate in the auctions, it is mandatory to register with B-Stock and submit a valid resale certificate. There are several categories on the website like furniture, apparel, and appliances.
Pros
-You can buy Amazon customer returns in bulk. Moreover, the retailer or seller directly sell the inventory on B-stock. No middleman is involved, which keeps costs low.
-Since Amazon Liquidator Auctions allows for merchandise to be purchased when it is brand new, buyers can further sell products at high-profit margins.
Cons
-Auctions are a long, unpredictable, and time-consuming process. You may prefer buying products than waiting.
-Receiving damaged items can lead to losses.
Direct Liquidation
It is a marketplace that partners with Amazon to sell pallets in online auctions. Creating an account on the website is mandatory to participate. It is also easy to search for products by the name of the store or brand.
Pros
-You can purchase liquidation goods as per the box, pallet, or truckload.
-There is no middleman involved in the purchase process and you can directly connect with US-based retailers to source surplus inventory in wholesale lots.
-Besides arranging for shipping, you can utilize Direct Liquidation’s shipping service or pick up lots by yourself.
-Direct Liquidation works with multiple retailers and marketplaces across product categories like appliances, sleepwear, and furniture.
-There is a strong, dedicated customer support team available through live chat, phone, or email.
Cons
-There are restrictions on the number of products that can be purchased, which may prevent you from obtaining the goods you require.
-Warranty coverage cannot be guaranteed for the products.
Liquidation.com
The website allows buyers to purchase consumer goods and commercial surplus inventory. The website boasts 500+ asset categories including general merchandise, clothing, and consumer electronics.
Liquidation.com auctions begin at $100 with no reserve, so the marketplace determines the final price. You need a wire transfer for any transaction above $5000, or from outside of the United States. Assets are typically shipped within 4 days of the receipt of payment.
Government Liquidation or LiquiBiz users who have not registered with Liquidation.com must register on Liquidation.com before being able to buy or sell products.
Pros
–The platform offers value-added services like the management of the entire logistical process like goods pickup and delivery, shipment tracking, detailed reporting, and liaising between buyers and sellers to provide undisputed advice in the event of a dispute. Also, there is minimization of liability by using FOB shipping methods rather than FOB origin, which protects the buyer’s right to dispute the merchandise.
–Liquidation.com has a Pro Tips Program where buyers can get a discount on auctions if they create a video or article for their website.
Cons
-There may not be warranty coverage for all products on the platform.
-It may be difficult to obtain your desired product at a low price during the auction process.
BULQ
It is a US-based website that has been in business for more than 11 years and has 200K+ positive reviews. The price of products on the website varies according to the seller and the product category. New lots are listed 3 times a day (11 AM, 2 PM, and 5 PM ET) and there is a dedicated customer support team available for assistance.
Any business can buy from BULQ, provided that they ship to a US-based shipping address. (Note: Alaska, Hawaii, and Puerto Rico are not included) A flat shipping fee of $30 is applicable. For pallets, freight shipping costs are calculated based on the pallet’s weight, dimensions, and distance from the final delivery address.
While you can easily browse through BULQ’s products online, you need to register on the platform and provide resale certifications during any transactions. While prices of a few products are fixed, others go through a 48-hour auction.
Pros
-BULQ promises 98% accurate manifests and it refunds the product amount if this criterion is not met.
-There is a wide range of products available on BULQ, including apparel, toys and baby products, and electronics.
Cons
-Buyers do not always have the option to customize the products they purchase through the platform.
-Certain BULQ partners may prohibit the export of specific items outside the United States.
Via Trading
The company is a wholesale merchandise liquidator It helps supply resellers with liquidation merchandise at a fraction of their original cost.
Buyers can view all availability including manifested loads through the Via Trading Load Center. It is necessary to create an account before purchasing any products.
Pros
-There is no minimum order amount. You do not need a business license to make a purchase.
-The company has a wide variety of products across multiple categories including shoes, clothing, electronics, and general merchandise.
-Dedicated account managers on the platform can assist you in business.
-Via Trading provides buyers with tools to help them calculate profitability and access to a complete online catalog as well as real-time availability of loads.
Cons
-Via Trading does not offer any product guarantees and no exchanges or returns are possible.
-The company is open to in-person visits by potential buyers.
Quicklotz
The company sells liquidation merchandise. Containers are shipped globally, but boxes and pallets are only shipped within the United States.
Users need to create an account before they can purchase from Quicklotz.
Pro
-Quicklotz pallets have a range of items ranging from electronics to general merchandise and toys.
Cons
-No warranties or guarantees come with the products.
-There are no refunds, returns, cancellations, or exchange facilities provided.
Wholesale Ninjas
The company partners with the world’s top retailers to provide wholesome quantities of liquidation merchandise. Wholesale Ninja’s facilities are present in the United States. Customers need to create an account before browsing the online store.
Pros
-Wholesale Ninjas sells products across multiple categories like clothing, cosmetics, and apparel.
-Every lot comes with a unit quantity guarantee. Hence, you receive the exact number of lots you order.
Cons
-Wholesale Ninjas does not ship internationally.
-Lots are pre-made. You cannot ask for specific items.
Bluelots
Bluelots helps buyers discover and purchase liquidation goods. You can browse through Bluelot’s entire collection without creating an account.
Pros
-Bluelots offers negotiated shipping rates with UPS, FedEx, and LTL freight providers and passes on savings to buyers.
-There is a range of product categories like clothing, health & beauty, and toys or baby products.
Con
–Like with other liquidation companies, customer returns are unopened, so there is a risk of the pieces being defective.
888Lots
The US based company provides buyers with the option to either purchase products in bulk or to buy individual items at low prices. There are 100,000+ products on888Lots.
Buyers must have a resale certificate before purchasing from the platform.
Pros
-The pallets come at a fixed price. Buyers can negotiate the prices.
-888 Lots provides product customization options to buyers.
-Pallets include information like ASIN numbers, UPCs, descriptions, reviews, sales ranks, and descriptions.
Con
-There is no guarantee that the products received will be of top quality.
Things To Consider Before Buying Amazon Customer Return Pallets
Avoid specific product categories
While purchasing pallets, one thing you must do is avoid pallets with products related to specific categories, like electronics. Electronic items, for example, may not work, and you may not be able to resell them, which means you’ll be at a loss.
Only purchase a few pallets initially
Whenever you are purchasing a pallet, either through an Amazon program or a pallet liquidation company, keep your risk to a minimum. Moreover, purchase limited pallets initially and check if their quality meets your expectations. If it doesn’t, you may experiment by purchasing your next pallets from other companies.
What If I Want To Sell An Amazon Customer Return Pallet?
Retail arbitrage is a lucrative strategy for making money by selling Amazon return pallets. The key is to refurbish the products and resell them at higher prices. Focus on repairing and refurbishing the items to enhance their resale value, making them appear “like new.” Here are some more tips for you.
Tips For Selling Amazon Customer Return Pallets
If you plan to put Amazon customer return pallets for sale, here are some tips to keep in mind.
Research Different Liquidation Companies
Before investing in a liquidation pallet, take the time to compare offerings from various liquidation companies. Then, price your pallets accordingly.
Thoroughly Inspect Offline Auction Pallets
If you’re participating in an offline auction, conduct a detailed inspection of the pallet before making a purchase. This hands-on approach allows you to assess the quality of each pallet, especially if they are mystery or unclaimed Amazon customer return pallets. It gives you leverage in negotiating the best price.
Factor In Shipping Costs
When calculating your budget, don’t overlook shipping costs. These expenses can significantly impact your overall profits. Thus, include them in your financial considerations.
Focus On Methodical Sorting And Categorization
Upon receiving your pallet, meticulously inspect and categorize the products. Evaluate packaging, product condition, and authenticity. Identify items with missing or faulty parts, as repairing or replacing these components can enhance resale value.
Now, you know more about buying customer return pallets from Amazon, where to buy them, and pallet sale tips as well. Happy purchasing!