With the cost of living in the U.S. still rising unabated, many people are turning to side hustles to supplement their incomes. These supplemental income avenues include house-sitting, writing online articles, and completing surveys. Unfortunately, most of these part-time activities never yield a substantial income.
If you have been trying to make some extra money on the side but have had no luck, there is another income avenue you can try. Amazon return pallets have become a way for many people to earn more money.
These pallets, filled with customer-returned items, offer a great opportunity to buy brand-name goods at a fraction of their original retail price.
If you have never heard of Amazon return pallets, keep reading to discover how to enter this market and make money.
What are Amazon Return Pallets?
Amazon’s 30-day return policy inevitably leads to piles of returns each month. This policy is good for consumers who may not receive what they expected, but it means huge costs for Amazon.
In 2022 alone, the e-commerce giant spent 17% of its U.S. holiday sales on returns. This amounted to $171 billion. So, Amazon is trying to offset these costs by selling returns pallets to people who want to make money fast. Amazon returns, or liquidation pallets, are massive crates filled with returned items. These goods include furniture, electronics, and clothes.
While some are used or damaged, many items are in excellent condition because they were unwanted gifts.
If you buy an Amazon return pallet, there is no telling what may be inside the crate. There could be furniture pieces or just a stack of books and clothes. However, the profit potential is very high because you can buy these boxes at a relatively low price of $200.
Why You Should Buy and Sell Amazon Return Pallets?
Even though you do not know what you will get in each pallet, there are likely to be more than enough items that will appeal to other buyers. This means you can buy an initial pallet for between $200 and $800 and instantly kickstart your own business.
Doing this via Amazon is much cheaper than buying returns pallets from wholesalers or retailers. Moreover, you have an unlimited supply of items because Amazon will always have returns. You can also buy overstocks from the platform at a lower price.
If you price your items wisely, you can make significant money from each pallet. You can also sell your items on several online platforms or even from a physical location.
Some people who buy and sell these pallets create a social media account and sell their items exclusively online.
How To Buy Amazon Return Pallets?
Getting started on buying a return pallet from Amazon is easy. All you need to do is register an account on a liquidation website and browse different pallets.
When you find one you want to buy, you can either place a bid for the pallet or pay a flat fee. You can then arrange for the pallet to be sent to you or picked up from an arranged location.
Amazon also holds regular liquidation sales after the holidays, which allows third-party sellers to liquidate overstocked or returned items.
What To Do When You Receive Your First Amazon Return Pallet?
You will find a variety of items in your first pallet. It is crucial to assess their condition before you start selling them. With a bit of luck, you may have several brand-new items. These goods will be in their original packaging and unopened.
Items with unbroken seals and labels will sell well, but you should still inspect them for damage. You may also get a good couple of like-new items. These will typically be opened but unused. When inspecting these goods, check for missing components and manuals. You want to ensure that all accessories are included in the packaging before you resell them.
Chances are you will get a lot of refurbished products, too. You will need to check the warranties on these before you resell them. If you get slightly used items, you may be able to restore them somewhat before reselling them.
However, when you get to the damaged goods, you must establish whether fixing them is worthwhile. There is no use in spending money on fixing an item if its resale value is too low.
If you plan on selling electronic or mechanical goods, test them before selling them. This means checking that they turn on and work as they should.
Sorting and Presenting Items For Sale
When you have checked all the items in your pallet, organize them by type and resale value. You will also have to set up an inventory list or use an app to track sales. Selling your goods this way will also make it easier to track stock levels.
Ideally, you want to present your goods in the best way possible. This means packaging them with high-quality materials.
Things To Remember
It is important to remember that without a detailed description of a pallet box, you may buy an empty box. Or, you could receive a box with only damaged items. This unpredictability may limit your profit and could also mean financial losses. This is especially true if you receive items you cannot resell.
The key here is to only source and buy pallets from reliable vendors. Read online reviews and research the platform’s reputation before you buy anything. Ask the vendor whether they supply detailed descriptions for each pallet. Also, beware of deals that seem too good to be true because they usually are.
Lastly, consider how long it will take to sort, clean, and list items and compare this to your potential profit. Depending on how many pallets you buy, you may need additional storage space, another cost to consider.
Is It Worth It To Buy Amazon Return Pallets?
Buying and selling Amazon return pallets is not a get-rich-quick scheme. As with any other business, you must calculate the risks and advantages and decide whether it will work for you. It is all about managing your expectations and being prepared for inevitable challenges.
However, if you approach this business venture the right way, you can make a handsome profit.
