Buying Amazon Return Pallets in Liquidation Auctions

Last Updated: January 30th, 2020.

If you’re looking to buy Amazon returns pallets, you need liquidation auctions. How do these auctions work, and how are Amazon returns processed?

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The resale business has been changing rapidly in recent years. Your network of wholesalers may have been a good source before, but the prices of single items online are now getting so close to wholesale that there is less room for discounts, and your profit margin is reducing. But there is an alternative to traditional wholesalers: liquidation auctions.

How Can Liquidation Auctions Boost My Business?

As soon as you hear liquidation, you may think of used, broken and scrap products. Add to that the hectic environment of an auction and you have a recipe for a tough day in the office. But things are changing and you will find that liquidation auctions can be a great opportunity for your business, if you follow a few simple rules. Yes, you still find the majority of products on offer are customer returns, pallets of used, or not-working merchandise, but there are opportunities in this market you can take advantage of. So how can liquidations auctions help your business?

First, the prices are way below typical wholesale. Second, you can buy merchandise in volumes from pallets to truckloads, which means you are getting the product in bulk. This keeps the price low and also keeps you stocked for a longer period of time. This also allows you to save money on shipping.

But cheaper isn’t always better and not every liquidation company is the same. This is where the little set of rules comes in.

Research the Liquidation Company

This is the first step you have to take to have a good experience with a liquidation company. Clicking on the first link that pops up in the results of your search is not a smart move. As the business has moved online, options for scammers have also increased. You will find websites that seem to offer great deals but are there one night and gone the other.

Your goal is to find out as much about the company as possible. Read through their history, the information on their website and the services they offer. But most importantly, see who they are associated with and what their customers are saying about them. This will take some time, but go on consumer forums and other similar website and go through comments on other buyers’ experiences with the company. Once you find one that has a good reputation among the customer base, and provides the services and products you require, go ahead and start bidding.

One such company is Direct Liquidation. Direct Liquidation works with top-tier retailers such as Walmart and Target. These retailers work with Direct Liquidation as a large liquidator that is able to deal with vast quantities of returns, not possible with smaller resellers. Direct Liquidation then splits the stock into smaller loads, and sells them to small businesses like yours, in either tested and graded, or untested lots.

But you won’t just find merchandise from traditional retail giants like Walmart and Target at Direct Liquidation. You will also find stock coming from giant online retail platforms like Amazon. And these are the products you are targeting.

Know Your Budget

When you find your company and the products you’d like to bid on, like a few pallets of Amazon return pallets, you need to do the math. See what the potential costs would be, including not only the purchasing costs, but also shipping costs. Compare that to the prices you find online on platforms such as Amazon and decide where your profit margin becomes not worth your time. That is the line you can’t cross in terms of budget. Once you know what that line is, you can start bidding. But if the price goes over your budget, stop. Otherwise, you are only running a loss.

Why are Amazon Return Pallets Good for My Business?

Well, a number of factors is at play here. First, Amazon is already a reputable company in itself, and the products they sell are of respectable quality. However, a number of products gets returned for various reasons. Sometimes the buyer changes their mind and returns the product as soon as it arrived, unpacked. Other times you may find the seller shipped the wrong product, or the wrong size, or colour, or the buyer expected the product to be different in real life. These are some of the reasons new products get returned.

You will also see people returning products that got damaged during transport or that they used them for a couple of days and they stopped working. In these cases, retailers will refurbish the product and liquidate it.

Why are new products also liquidated? Stores usually will not place returned items back on the shelves because they cannot guarantee the condition there are in, and so they are liquidated. So how do I know I’m buying the returns that are basically brand new, and not broken products?

This is where the reputable liquidator comes in. A reputable liquidator will always offer you a packing list or a manifest, as it is called, that contains information about each pallet. It shows what is inside of the pallet, what type of products, what condition these products are in as well as the quantity of these products.

But keep in mind that sometimes the products are sold ‘as is’ by the liquidator, meaning they are shipped directly from the retailer’s warehouse and have not been reviewed by the liquidator.

Direct Liquidation is a goTRG company.

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