Amazon is the world’s leading online marketplace. The e-commerce website ships millions of packages daily.
But like any mega-retailer, not all products purchased from Amazon end up getting accepted by the buyer. Some of these pieces of merchandise are returned for various reasons, including defects, bad packaging, and wrong orders. The returned products are sorted into special bulk packages known as Amazon return pallets.
This article delves deeper into Amazon return pallets, with a special focus on how to purchase these pallets.
What Are Amazon Return Pallets?
Amazon return pallets are large wooden crates and boxes used to distribute products returned to Amazon by customers.
The pallets are available in bulk packages. And as mentioned, each package typically contains a wide assortment of products.
What Happens To Amazon Return Pallets?
Amazon receives dozens of purchase returns every day. The company may decide to ship these pieces of merchandise to the original supplier. But considering the logistical challenges involved, this isn’t always a viable option.
Instead, Amazon sorts the purchase returns into bulk packages and sells them to individual customers or large liquidation companies. Expectedly, the pallets are reasonably discounted compared to buying the included items separately.
Besides selling its return pallets at huge discounts, Amazon may also decide to donate these purchase returns to charitable organizations.
Why Can’t Amazon Ship Purchase Returns To The Seller?
We’ve just pointed out that shipping purchase returns to the original seller can be a logistical nightmare for Amazon. That’s because the online retailer doesn’t have a direct relationship with most of its suppliers.
Also, as far as most Amazon sellers are concerned, it makes little economic sense to pay the e-commerce company to ship purchase returns back to their stores.
That leaves Amazon with all the freedom to determine what to do with the returns. And due to a steady influx of returned goods, the company is always keen on disposing of its return pallets as soon as it can.
How Much Do Amazon Return Pallets Cost?
There’s no standard rule for pricing Amazon return pallets. The pallets can cost anywhere from $100 to $5,000 or even higher.
The actual price of Amazon return pallets depends mainly on the value of the individual items in the package. For instance, pallets consisting mostly of electronic goods and home appliances will naturally cost more than those made up of, say, casual clothing.
The number of items in an Amazon return pallet is another key factor used in pricing these items. Pallets that feature more items of the same kind have higher price tags than those with only a handful of items.
Remember that Amazon typically sells its pallets to third-party liquidation websites. These companies may add certain markups to a pallet’s original price by factoring in aspects like shipping cost. Shipping fees will vary depending on the package’s weight and dimensions, as well as the distance from the liquidation company to your delivery address.
How Does Amazon Price Its Return Pallets?
Amazon uses a rather straightforward formula in pricing its return pallets.
The company basically tallies up the full selling price of all contents in the package. It may also add the cost involved in repackaging and shipping the pallets to the liquidation companies.
However, note that Amazon doesn’t concern itself with the condition of the items in its pallets. That means some goods may be broken while others could lack essential components.
Do I Ever Know What I’m Getting?
In most cases, you’ll be unable to tell the contents of an Amazon return pallet until you open it. Many Amazon customers actually cite this mystery aspect as the primary drawback to investing in the e-commerce retailer’s purchase returns.
However, it’s possible to make a wild guess of the items contained in an Amazon return pallet. You only need to understand the most common pieces of merchandise the online marketplace deals in.
Amazon’s most commonly traded goods include;
• Clothing (for men, women, kids, and babies)
• Fashion accessories like jewelry and hats
• Electronics, such as televisions, home theaters, smartphones, and laptops
• Home appliances, such as refrigerators and ovens
• Games and gaming consoles
• Toys and pet supplies
• Beauty and cosmetic products
• Home improvement supplies
• Furniture and home décor items
• Farming and gardening implements
• Books and invitation cards
• Gift items
• Sports gear
You may also predict the contents of an Amazon return pallet by understanding the types of frequently returned items.
Clothing and fine jewelry constitute Amazon’s most commonly returned goods, at 40%. Consumer electronics come in second at 25 – 35%.
About 8 – 10% of all furniture and home appliances purchased from Amazon are returned to the e-commerce retailer. You’re less likely to find books and media in an Amazon return pallet as a paltry 5 – 7% of these products are returned to Amazon.
How Do I Buy Amazon Return Pallets?
First, it’s worth noting that Amazon maintains its own Bulk Liquidation Store where you can browse amazing deals on its return pallets. Products in the store are carefully sorted into categories. This allows you to predict the contents of currently-available pallets.
Besides Amazon Bulk Liquidation Store, there are numerous liquidation companies that the online retailer sells its return pallets to. Notable mentions include;
• Direct Liquidation
• Wholesale Ninjas
• Via Trading
Now, the first step in buying Amazon return pallets is to decide on the best liquidation website to purchase the crates from. Insist on companies that have partnered with Amazon for the longest duration and who enjoy the highest amount of monthly website traffic. Be sure to also read online reviews for more insights into the company’s services.
Next, you’ll need to register on the liquidation website. Most of these platforms maintain a straightforward sign-up procedure.
Once you’re duly signed up, browse the Amazon return pallets available on the company’s website to find a suitable crate depending on your budget.
Place a bid or purchase the pallet directly. Bidding is encouraged where you’re still unsure of what to spend on a pellet. It also allows you to negotiate the crate’s price further with the seller.
The last step in buying Amazon return pallets entails arranging shipping. Ideally, you should have established that the liquidation company ships to your preferred address before ordering from them. While most liquidation firms have a global presence, it’s more economical and convenient to prioritize companies that operate near your geographical area.
It’s also prudent not to focus on a single liquidation firm. You can register with all the above-listed websites to improve your access to Amazon’s pallets. This is particularly recommended if you’re purchasing the crates for resale.
Are Amazon Return Pallets Worth It?
Affordability is the primary reason to invest in Amazon return pallets. These crates are often sold at reasonably discounted rates of between 30 and 70% of their retail value. They’re especially suitable for individual bargain hunters and small businesses that may not have the capital required to purchase brand-new Amazon products.
Products purchased from Amazon pallets also take up less storage space than those bought in containers. Besides, you get a wide assortment of items in a single package.
Lastly, buying Amazon return pallets is your small contribution towards environmental preservation. By investing in these crates, you prevent them from piling up on Amazon’s warehouses and possibly being dumped in landfills.
What Are The Common Things To Remember When Shopping For Amazon Return Pallets?
Researching a liquidation website carefully is the most critical aspect when shopping for Amazon return pallets.
As already hinted, you want to be sure you’re purchasing these crates from reputable companies. The firm should enjoy high approval ratings from its previous customers. Be sure to also understand the shipping costs and check for any hidden charges before ordering from the website.
Second, experts recommend insisting on manifested pallets.
While most Amazon return pallets are mysterious in nature, the company or its liquidation partners may manifest some of their pallets. Manifested pallets clearly define the items in the crate, including their physical dimensions, quantities, and suggested retail price.
However, note that manifested Amazon return pallets tend to cost higher than their mysterious counterparts. It’s also important to inspect the manifest list thoroughly to determine that the package includes most or all of the items you intend to buy.
Another important tip when buying Amazon return pallets is to be selective on what you purchase. Remember that these crates consist inherently of returned goods. And a significant percentage of purchase returns are usually defective commodities.
While you may not account for the products’ condition 100% (most manifest lists don’t specify this), you can avoid items commonly returned for defects. These include electronics and home appliances.
In the same breath, avoid return pallets containing items that attract low resale rates. Notable mentions here include costumes and baby products.
Lastly, begin small and test the waters before working your way up. You could start by buying, say, a $500 pallet for the first few orders.
What Can You Do With The Purchased Amazon Return Pallets?
What you do with an Amazon return pallet depends on whether you’re an individual shopper or a business owner.
Individual buyers can simply keep and enjoy the contents of the pallet. If you’re lucky enough, you might find a pallet with a home theater, microwave, and fitting clothing items. Just the right things you need to restock your house.
If you’re a business owner, you could add the products in Amazon return pallets to your store’s shelves. Just remember to repair or refurbish the items where required before listing them for sale.
Amazon return pallets may be considered trash by some people. But for astute shoppers and retailers, these crates can constitute a treasure investment.
Just be sure to proceed with caution before ordering an Amazon return pallet. If possible, insist on manifested pallets while also buying the crates from reputable liquidation websites.