Sourcing discounted products to resale at a higher margin can be a challenge for any Amazon wholesale seller. That’s where purchasing Amazon returns wholesale comes into play, enabling Amazon Prime sellers to acquire potentially high-quality merchandise at a lower price.
Instead of putting a returned item back on the digital shelves, Amazon often resells those products in bulk to liquidation stores. Those liquidation retailers then pack and sell the items to wholesale sellers in the form of pallets or liquidation boxes.
In some cases, the purchaser will know exactly what’s included in the Amazon liquidation pallet. In other cases, the returned Amazon products are sold in a “mystery pallet” in which the buyer won’t know what they’re purchasing until they receive the pallet.
Purchasing returned Amazon items via liquidation pallets can be beneficial for some Amazon retailers; however, there are a number of factors to consider before adding this to your Amazon wholesale strategy. We’ll cover everything you need to know about buying and reselling returned Amazon merchandise—including where to find them and how to determine if purchasing Amazon return pallets is the right choice for your business.
When an Amazon shopper returns a product, Amazon processes the return and chooses to either restock that item into their warehouse, dispose of it, or sell it to a liquidation store. Amazon also only accepts returns of certain products, and has guidelines for what they will and won’t take back. While many factors including quality, condition, and packaging impact what happens to the returned merchandise, the quantity of the returned items can sway Amazon to liquidate the merchandise—if a large amount of the same product is returned at one time, it can be complied into a pallet or Amazon liquidation box, then resold to an Amazon liquidation center where retailers can purchase branded and non-branded products at a discounted rate.
Now that we’ve discussed what happens to Amazon products when they are returned, let’s talk through Amazon returns pallets and liquidation boxes in more detail.
Because Amazon liquidation warehouses typically sell returned products in bulk pallets, it’s difficult for a buyer to purchase individual items. Sometimes these pallets or liquidation boxes will include multiple units of the same product, numerous different products, or “mystery products” that aren’t detailed in the pallet description. These “mystery” pallets don’t require the seller to catalog each individual product and are often sold at an even more discounted rate. This might sound like an appealing way to increase Amazon sales, but may not be ideal for Amazon returns wholesalers who are particular about what products they are wanting to sell.
It’s a common misconception that products purchased from Amazon liquidation warehouses are likely to be damaged or otherwise faulty. While it’s true that returned items often have issues with their packaging or minor cosmetic faults, Amazon makes an effort to avoid reselling merchandise that is returned due to the product itself. It is possible to purchase high-quality products in perfect or near-perfect condition from Amazon liquidation warehouses—just be sure to pay close attention to details, including the condition of the products, prior to purchasing the returned goods.
Amazon returns pallets and liquidation boxes cannot be purchased directly from the Amazon marketplace, but can be sourced from a variety of online liquidation stores. These liquidation sites often have unclaimed Amazon packages for sale, giving you the opportunity to purchase merchandise that has never been opened. If you’re not sure where to start, try browsing through popular liquidation sites that partner with Amazon. Many of these Amazon returns liquidation websites don’t require you to create an account to browse available inventory. However, you will need to create a verified account before you can place bids or purchase Amazon returned products.
Speaking of placing bids, it’s worth noting that most liquidation retailers sell Amazon returns pallets or liquidation boxes in auction format, meaning you will need to know how to bid on Amazon pallets and how to navigate the ins and outs of an online auction. To make the bidding process a bit easier on the buyer, reputable auction house websites offer tools like email alerts and automated bids that are triggered when someone outbids you. Before getting started with placing bids, be sure to familiarize yourself with the site’s auction process and the features the platform offers.
While Amazon liquidation sites are the most reliable way to purchase Amazon returns wholesale, it’s not your only option. Sometimes, private sellers compile returned Amazon products into mystery boxes and sell them on seller-managed auction websites. The eBay marketplace can be a great option for Amazon marketplace sellers and wholesalers looking to source products—just be sure to look at the seller’s reviews before making a purchase, as purchasing from individual sellers doesn’t come with the same protection as purchasing from a trusted liquidation website.
Amazon retailers are as unique as the products sold on the marketplace. That’s why it’s essential to develop your strategy for success. Before deciding if selling Amazon returns wholesale is right for your business, be sure to weigh the benefits and drawbacks.
Let’s start with the benefits of purchasing returned items:
However, there are potential drawbacks of buying returned Amazon products wholesale:
Purchasing returned Amazon products can be a lucrative Amazon wholesale strategy, as long as you do your research and source from vetted liquidation sellers. We recommend working with trusted liquidation partners and carefully reviewing all details available, especially the quality and condition, of the Amazon returns pallet or liquidation box you’re purchasing. Once you have your product on hand and listings active, we recommend reviewing your seller account and product listings frequently to ensure you're consistently meeting Amazon's seller requirements and reduce the risk of suppressed listings.
Developing both a strong Amazon seller pricing strategy and an Amazon marketing strategy are essential to a reseller’s success in the marketplace—and scoring a great deal on inventory gives you the flexibility to maintain a balance between competitive pricing and winning the Amazon Buy Box.
But before you can enjoy those Buy Box wins, you need to get shoppers to your listing. Taking advantage of an Amazon listing optimization service or an Amazon marketing agency can help to optimize your listing, ensuring you target the right keywords, feature high-quality product photography and video, and run the right Amazon paid advertising campaigns for your product.
That’s a lot. Amazon can seem like a puzzle—and putting together all the pieces can be time-consuming and stressful. Partnering with an Amazon seller consultant can take the guesswork out of your Amazon strategy, letting you focus on growing your business.
Our friends at LogOX wanted to increase their Amazon sales and presence while reducing their team’s workload. Partnering with SupplyKick resulted in LogOX ranking #1 in their Amazon subcategory and a 200% increase in quarter-over-quarter Amazon revenue.
Contact us to learn how SupplyKick can help your brand grow on Amazon and beyond.