How to Buy Amazon Customer Returns Pallets Online
Last Updated: June 15th, 2022
Added section: “What Can You Expect in Amazon Truckloads?”, “What Does Amazon Do With Returns?”.
Making online purchases is the new normal nowadays and sellers keep competing for a market share in every segment. Online platforms such as eBay or Amazon are the best place to look for a product and more and more retailers open online stores on these platforms, in addition to their own websites, to gain access to a wider, global audience.
But with a global reach come global issues. Online purchases are convenient, quick and easy. However, the other side of that coin can turn into a logistical nightmare for the seller: customer returns.The reasons for product returns are plenty and in fact, 30 percent of all online purchases get returned, whereas just 8.9% of goods are returned to brick-and-mortar stores. Around 49% of retailers in the United States now offer a free returns shipping policy and customers – especially younger online customers – now expect this.
This has led to an explosion in the amount of products being returned across the whole retail sector, with 62% of customers now saying they would be more likely to shop with a particular retailer if it has a free returns policy. This in turn generates more and more returns, and those returns have to go somewhere.
Retailers and Amazon sellers do not put a large portion of these returned products back on sale as new, even though many of these products return unopened. Instead, they look for other ways to sell that merchandise: they liquidate it.
So if you are in the market for Amazon Return Pallets packed with either random merchandise or sorted in specific categories, you should continue reading and check for yourself how you can buy Amazon Customer Returns and extract the maximum gains out of these Amazon Returns pallets.
What Does Amazon Do With Returns?
Amazon has been criticized for destroying millions of items, and now has the stated intention to work “toward a goal of zero product disposal.” There are now programs in place to allow sellers to resell customer returned items, or to allow them to be sent to the liquidation market.
Amazon third-party sellers told CNBC they end up throwing away about a third of their returned items.
Amazon now gives sellers four options (subject to a fee) for dealing with items that they can’t sell as new: Return to Seller, Disposal, Liquidation, and Fulfillment by Amazon Grade and Resell (at the moment by invitation only).
There is also liquidation, which Amazon now offers sellers as an option instead of disposal.
Amazon partners with liquidation marketplaces, which auction off unwanted inventory to resellers by the pallet or even truckload. Sellers can recover around 5% of the sale price if the product is liquidated.
With the ‘Return to Seller’ option, the return leaves the Amazon warehouse and gets back to the seller for their processing. For non-electronic items, you will find that many items are simply relisted if they have never been opened. If the items have been opened, what happens to them will depend on the seller (whether Amazon itself, or a 3rd party seller on Amazon), and the value of the item. If the resale value is worth the cost of repairing, cleaning, testing, or repackaging, many sellers will choose to do so, as long as the margins are there to make this worth their while.
Electronics are a different case. A large number of electronic items returned to Amazon are subject to an inspection, and then repaired if necessary. After this process, they are listed on Amazon Renewed. This is the place where customers can purchase Amazon returns that are guaranteed to be working as new while spending a lot less than they would when buying a brand-new item.
However, it is not that easy to be included in Amazon Renewed. Unlike new items, the strict rules set up by Amazon make it harder for third-party Amazon sellers to sell refurbished items through Amazon. Sellers are required to follow a list of stringent rules.
And what about the returned items that don’t get resold through Amazon? A portion of that merchandise is put in pallets and liquidated.
When sellers use ‘Fulfilled By Amazon’ (FBA), the categorization of customer returns is done by the Amazon fulfillment center. The merchandise is labeled as either sellable, damaged, customer damaged, defective, carrier damaged, or expired. If damage is incurred by the courier or Amazon staff the merchandise is transferred to Amazon ownership, and the seller is compensated. Amazon sells this type of returned merchandise by the truckload.
Where to Look for Amazon Return Pallets?
The best way to buy Amazon return pallets is through liquidation companies. When searching for a merchandise source, you are advised to look for the most reputable seller. This is best reflected in customer experience. Therefore, you should look for the advice of other online resellers who have sourced their merchandise through those companies. The best way of getting this is by looking for online reviews, which tend to give a clear picture of a company’s services and product quality, which in turn reflects on a company’s reputation.
Source: Statista, 2020.
Direct Liquidation is a highly reputable company that strives to and succeeds in keeping customers satisfied while forging and developing partnerships with major retailers. This means that at Direct Liquidation’s online platform you will be able to buy not just Amazon returns, but merchandise sourced from other retail giants like Walmart, the largest retailer in the United States.
What Can You Expect in Amazon Truckloads?
There are four main types of Amazon returns truckloads:
Large products, or ‘Bigs’
These truckloads contain 26 tall pallets, mostly consisting of large items, such as televisions, large appliances, display cases, furniture, and similar merchandise. These lots are ideal for larger retail stores with space to accommodate these items for sale locally.
Small products, or ‘Smalls’
Smalls truckloads contain small items of merchandise. As you can fit many smaller items into the Gaylord pallets, the average piece count is very high. Some of this smaller merchandise can be very valuable and may contain designer sunglasses or watches, electronics, and branded accessories. This type of merchandise is perfect for bin stores, and for online sales. Due to the huge piece counts of potentially very high-value items, these truckloads often contain the most profit potential on resale. The high number of different products you will receive in these lots may be very time-consuming to process, especially for listing online but should give you the best return on resale on your initial investment.
Source: Business 2 Community, 2016.
These truckloads contain the most popular items for resale, but in lower quantities. They contain 26 pallets with lower item-counts than the smalls truckloads, but are more likely to contain the strongest retail items, that are particularly sought after by online sellers. These lots will contain some of the best-selling stock available from Amazon, meaning your turnover will be quicker, but with less profit potential overall.
Clothing is a huge sector for Amazon, and the high rates of clothing returns means there is no shortage of clothing in very good condition, most of it poly-bagged and ready for resale. Many buyers of clothing truckloads will obtain the product to resell overseas, where demand for American clothing is popular. Each of the 26 pallets in these lots can contain up to 1200 items or more of clothing. Lucky buyers will also find a lot of designer clothing, and accessories such as handbags, scarves, belts and more. Clothing lots are generally mixed between items for clothing for men, women, and children, though some lots will also contain baby items.
How to Buy Quality Amazon Return Pallets?
Research is crucial if you want to be successful in this business. Reputable liquidation companies offer certain benefits to their buyers. The story of only scrap being sold through liquidation companies comes from customers who jumped at the first opportunity to buy cheap merchandise, without doing any research on the seller, the merchandise or anything else beforehand. This is a cardinal sin in the business and should never be done. Always do your research.
Choosing to buy Amazon return pallets from a reputable seller like Direct Liquidation means half of your job is already done. Nonetheless, you should always look for the manifest of whatever lot you are interested in. For most lots, Direct Liquidation provides manifests, a list containing all the relevant information about the merchandise contained in a pallet, such as its condition.
Direct Liquidation generates all the manifests it provides on its online liquidation marketplace using various methods such as scanning Universal Product Codes and feeding them into our own software to ensure each manifest accurately describes what is contained within each pallet.
Where available, the manifests Direct Liquidation provides to its business customers contain valuable information that will help you choose the merchandise you need as well as plan how to market it. Depending on your target market and your customer base, you will be able to determine what products you are getting, even in a pallet of returned merchandise. Whether you decide to buy unsorted customer returns, that are at the lowest price point, or closeouts and overstock merchandise that have the highest resale value, but also cost a bit more, depends only on your personal preference and business needs.
Buying Customer Returns Pallets from Direct Liquidation
Returns pallets are typically sold for considerably less than each pallet’s overall MSRP value because the pallets are offered for sale ‘as is’, meaning they won’t have been touched or inspected by us. Usually, an untested pallet of Amazon returns will have up to a 75% success rate, meaning up to 75% of the items in the items in the pallet will be in a sellable condition right out of the box. This is an estimated figure based on Direct Liquidation’s experience dealing with untested pallets of returns.
If you wish to buy Amazon returns pallets, the process is incredibly simple. First of all, you’ll need to sign up for a free account before you can purchase returns from Direct Liquidation.
Source: OBERLO, 2020.
Once you’ve signed up for a free account, you can use the website’s search function and drop-down category menus to find the pallet of Amazon returns you wish to bid on. Or you can head directly to Direct Liquidation’s dedicated Amazon vendor page, which shows you every boxload, pallet and truckload of Amazon Liquidations that Direct Liquidation currently has for sale.
After finding a pallet of returns you like the look of, it’s just a matter of entering bids and seeing if you’re the winner of the auction. If you are, all that’s left to do is pay for your goods and arrange shipping. Payment for pallets bought via Direct Liquidation’s website can be made via bank wire, credit card or via a credit account.
If you do not wish to take part in live auctions, many of the pallets Direct Liquidation sells can be bought for a fixed price. If a lot has a ‘Buy it Now’ button, it can be purchased immediately. Simply click on the button and you’ll be taken straight through to purchase.
Tips On Upscaling Amazon Returns Pallets
Once you’ve purchased and received a pallet of Amazon returns, you’ll want to maximize your potential profits by upscaling as much of the pallet’s contents as you possibly can. As discussed, Amazon returns pallets are typically untested, meaning the merchandise each pallet contains will be in a variety of conditions. Some of the merchandise will be retail-ready, while some of it may need some repairs.
|The Top 25 Physical Products Bought on Amazon Prime Day 2019|
To increase your chances of squeezing as much profit from each pallet purchase, there are several things you can do:
Sort and Bundle
First of all, you’ll need to sort through your pallet to see exactly what you have. You’ll need to separate out what can be sold straight out of the box, and what needs your attention. Some items are more attractive to customers if sold together as a bundle. So you need to check what items make sense together as a bundle.
Repair and Refurbish
Many items are returned to retailers because they are faulty (this particularly applies to electronics). Try to repair and refurbish as much of this type of merchandise as you can, either doing the work yourself or using a third party. Often, faults can be minor and easy to fix, and doing so brings products back up to factory specifications and adds considerable value.
In pallets containing several faulty items of the same model, components can be taken from one model and used in another to bring that model up to spec. It’s always a good idea to keep hold of broken products that cannot be repaired or refurbished as they can often be used for spares and repairs.
Sometimes, products are returned because they are missing accessories such as chargers or headphones. These are usually easily and cheaply replaceable, and selling a product with its full list of accessories adds value to the product.
If the packaging that a product comes in is damaged, try to get hold of replacement original packaging or repackage the product. Believe it or not, poor packaging can affect the value of the product, so make sure your products are always packaged in either good quality original packaging or pristine plain packaging.
Inspecting and Grading
Make sure to inspect all your products thoroughly. When you resell your items, make sure you sell them advertised at the correct grade. Most of the items you sell will fit into the following categories:
- New factory-sealed – These items are brand-new, still in their original boxes and are still sealed in their factory plastic wrapping. This merchandise has never been opened and is in pristine condition.
- New open-box – This merchandise is new, and in perfect condition, but the packaging has been opened.
- Refurbished – Refurbished items have been inspected, repaired if necessary, and accessorized and repackaged.
- Used – These items are functional, but have visible signs of wear and tear including scratches and/or dents.
Finally, remember to never include an original manufacturer’s warranty in the products you resell. The warranties will not be valid, so make sure to check if cards are included with the products you plan to sell, and discard them.
Buying Amazon returns pallets from Direct Liquidation is a great way to purchase merchandise at prices below typical wholesale values, setting yourself up for a chance to maximize your profit on resale. Just make sure you do your research right, find the right market and the right products to resell, and buying Amazon return pallets through Direct Liquidation will help you be on your way to success.
Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.
View Henley’s Bio on YouTube.
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