Are you searching for ways to get inexpensive inventory without sacrificing quality? If your answer is yes, you’re not alone here.
Most business owners are always looking for ways to cut costs without affecting their customers. Some businesses are turning to Amazon return pallets as a way to keep inventory on the shelves without increasing shipping costs. If you’re not sure what an Amazon return pallet is, the explanation is pretty simple.
Stuff is returned all of the time to Amazon, and not everything makes it back to the original seller. This stuff ends up on pallets and goes up for sale by a liquidation company. Amazon partners with several liquidators so you have a few options on who you purchase the pallets from.
The pallets are generally around a few hundred dollars, and you get several boxes packed full of returned items. It sounds like a win for everyone, so let’s get started with what you should know.
Keep This In Mind Before Buying an Amazon Return Pallet
Okay, so by now, you have a general idea of what an Amazon return pallet is and how to go about purchasing one.
You sign up with an Amazon-partnered liquidation company, scroll through the available pallets, and purchase one that seems to fit your business. The pallets are usually divided into categories like fashion, electronics, etc.
However, before you get excited and start buying pallets from Amazon, there are a few things to keep in mind to help ensure you get products you can actually sell to your customers.
Compare the Various Platforms
Amazon has partnered with a few liquidation companies and this is good news for you. With more options, you’re increasing your chances of getting a great deal. Something to keep in mind is that not all platforms are equal.
While Amazon is pretty careful about its partnerships, this doesn’t mean things can’t fall through the cracks. Simply put, some liquidation companies are better than others. But don’t worry, this doesn’t necessarily affect the pallet’s price, only the level of service you can expect.
Some liquidation companies offer pallets through an online auction. For some businesses, this can mean savings if they’re willing to invest the time in the auction. Other platforms operate on a first-come, first-buy basis. You pay the pallet’s listed price.
You may also be able to enjoy additional savings through some platforms. Repeat consumers may be able to enjoy deeper discounts—think of this as a type of loyalty program. The more times you purchase a pallet, the greater your discount, which is another thing to consider if you’re planning on using Amazon return pallets as a steady source for inventory.
Start Small
After narrowing it down to one liquidation company, don’t go overboard on your first order. Starting small simply makes good business sense. You’re not entirely sure what’s included in an Amazon pallet. Most liquidation companies don’t provide an inventory list, all you know is the product category.
You don’t want to make a large investment before you have a better understanding of how the process works. You also want to see if quality meets your shipping standards. After all, you don’t want to start selling inferior products, since this can negatively affect your brand’s reputation. You want to be known for selling high-quality items at affordable prices.
You also don’t know how well the pallet items are going to sell. By starting small, you can get a better idea of the market without investing a lot of company resources. If everything goes smoothly, you can start purchasing return pallets regularly.
Electronics Aren’t Always Good for Bottom Lines
Amazon return pallets are often filled with electronics. Remember, this is a booming business so there’s bound to be plenty of returns. Investing in a pallet filled with electronics for a few hundred dollars can seem like a great deal. There’s even the possibility of significant savings.
As tempting as electronics can be, there are a few downsides to consider. Remember, the reason you’re getting these items is because consumers returned them. Typically, this means the electronics aren’t working properly. Some may even be non-functional.
If you’re in the business of refurbishing electronics, this type of pallet can be a good investment. Your team will have plenty of items to work on and you will have inventory you can sell at a fraction of the normal price. If you’re not prepared to refurbish electronics or can’t afford to take a potential loss, this type of pallet may be one you want to avoid.
Simple is Often the Best Option
Some categories, like fashion, are easier to sell than others, regardless of what’s included on the pallet. If you end up with 30 dresses in the same color, no big deal. However, if you end up with a ton of items requiring repairs, you may be selling at a loss.
If your niche is workout gear, you may want to avoid complex machinery that may need some repairs. However, dumbbells, jump ropes, and barbells require little maintenance and tend to be relatively easy to sell.
In other words, you may want to avoid complex products that have a higher likelihood of being broken or damaged.
Pay Attention to Shipping Costs
You can’t keep the Amazon return pallet at the liquidation company’s warehouse. They’re going to ship it to the address you provide, which means you’re going to be looking at shipping costs—and these can quickly get expensive.
As you’re researching the various liquidation platforms that are out there, make sure to check and compare their shipping rates. Some platforms include shipping in the pallet price but not all.
How the liquidation company ships the items on the pallet will also affect shipping. For example, if they send one item at a time, you may end up paying for 50 boxes separately.
Try to work with a platform that uses as few boxes as possible. Yes, weight can increase shipping costs but not as much as when you’re receiving 50 separate items.
Are You Ready to Invest in an Amazon Return Pallet?
Investing in an Amazon return pallet can be good for your business. You get inventory at below-market costs, even with shipping charges. Before you purchase a pallet from Amazon, make sure to do some research and think about what you can sell and what may end up sitting on your shelves.
Assessing the demand for potential items and understanding the condition of the products can help you make more informed decisions. With careful planning, Amazon return pallets can boost your inventory and profitability.
