We explore the reasons why retailers like Amazon liquidate their returns and how you can buy Amazon return pallets for discounted prices.
Reuters reported that online spending with U.S. merchants reached an estimated $1 trillion in 2022! However, it’s no secret that eCommerce returns have risen drastically as well; from 2019 to 2020 alone they increased by 10.6%, up to 16.6%. That is equivalent to over three-quarters of a trillion dollars worth of merchandise returned! For Amazon, this impact could be massive given their 200 million Prime members – potentially leading to more returns than ever before! Plus Amazon offers various ways to return items to Amazon making it hassle-free for Amazon customers.
What do stores do when they are flooded with returns? Liquidate. In this blog post, we will explore the reasons why retailers like Amazon decide to liquidate and how they go about it, and how you can get your hands on these Amazon returns for pennies on the dollar.
What Happens To Amazon Returns?
You might be curious about where all of the Amazon returns go. Well, nearly 49% of retailers in the U.S. offer customers free return shipping policies. Therefore, it is no surprise that 30% of all online purchases get returned! This is more than 8 times greater compared to physical store returns! Consumers have become accustomed to freely sending back their unwanted items without having to worry about hefty financial consequences, and this has changed online shopping forever.
Although returning orders is hassle-free for customers, retailers find it more of a burden. Take Amazon as an example – they have one of the most customer-friendly return policies out there. The top reasons people return their online purchases are: 20% receive a defective product, 22% of products appear different than expected and 23% received the wrong item shipped to them.
What does Amazon do with returned products?
So, what does happen to all the items that are sent back to Amazon? FBA sellers and third-party marketplace resellers could always put them up for sale again, but think of how much time and effort it would require to inspect, repack and relist each return. Liquidation seems like a much more attractive option from an economic perspective. Out with old returns; in with fresh new merchandise!
When it comes to liquidation, major retailers must quickly get rid of their merchandise so they offer it at low prices. Even Amazon is selling pallets of customer returns to liquidators so that more individuals have access to the products. Warehouse liquidation has been around since the conception of department stores and has always been essential for companies to bring in new goods. This includes everything from overstock items, returned products, and seasonal merchandise alike.
Where To Buy Amazon Returns
Amazon does try to resell some pre-owned, used, and open-box products in their Amazon Warehouse, but most items become “Amazon Liquidation Salvage” that is sold off to brokers for resellers to buy. These resellers may then sell the items online or offline at Amazon liquidation stores or Amazon bin stores where consumers can buy name-brand items for a fraction of the original retail price.
Also, not all Amazon returns are broken or defective! We previously mentioned that some items get returned due to other reasons such as buyers changing their minds, no longer needing an item, or expecting it to differ in some way. For this reason, many customer returns remain unopened and brand new.
To find an Amazon liquidation store, Amazon salvage store, or Amazon bin store near you, click here for a map of all liquidation stores in the United States.
How to Buy Amazon Return Pallets
The process of buying Amazon return pallets is almost the same as buying Target liquidation pallets. Click on over to that post to learn the liquidation lingo and go over things you need to consider before buying liquidation pallets.
Some liquidation stores and salvage stores, and even some bin stores, will sell full pallets to the general public in addition to their storefronts, so you may want to check them out and ask to speak to the manager or owner if you don’t see any for sale. This would save you the high freight fees if you have a pickup or trailer or can borrow one. I’ve even seen people with bigger vehicles buy pallets and break the pallets down right in the parking lot to get everything to fit into their vehicle.
Beware that a majority of these local pallets for sale will have been “cherry-picked” beforehand (which means the best things have been removed). But you should be able to buy a pallet of Amazon returns for $300-$500. For higher-quality merchandise, such as Nordstrom Rack liquidation, Bed Bath & Beyond liquidation, Kohl’s liquidation, and even Target salvage liquidation, expect to pay much more per pallet. Costco clothing liquidation and CVS HBA pallets can go up to as high as $3000 per pallet.
Therefore, I recommend you do your due diligence and ask where the pallets are from and the condition of the items before buying so that you are not disappointed. You may even want to ask if the pallets have been “cherry-picked”.
To buy Amazon return pallets online, you can search online for “Amazon return pallets”, “Amazon liquidation pallets” or “Amazon salvage pallets”. You will find many options from auctions to brokers offering pallets for a set price. I recommend that you read reviews and ask for references to make sure that the seller is legitimate. Because once you wire money, you cannot get it back.
One broker that I recommend is Zack Kram of Freedom Wholesale. Their warehouses are located in Aurora, Missouri, so in a central location to ship out to all of the United States. I personally have bought Dollar General liquidation, Walmart liquidation, and Macy’s liquidation from Zack and his team. Plus they sell Amazon return pallets as well.
For a list of more places to buy Amazon return pallets and a crash course on how to flip pallets for profit, enter your email address below for a free liquidation guide with our compliments.
Have questions about buying Amazon return pallets? Here are the most common FAQs to help you get started:
How much does a pallet of Amazon returns cost?
A pallet of Amazon returns can cost anywhere between $300-$500. However, the price may vary depending on the condition and quality of items in the pallet.
Where can I find Amazon return pallets?
You can find Amazon return pallets at liquidation stores, salvage stores, and bin stores near you. You can also check online for liquidation websites that have amazon return pallets for sale.
Where does Amazon sell their returns?
Amazon usually sells their returns to brokers who then resell it back to liquidators, so that more individuals have access to the products.
Is it true you can buy pallets of Amazon returns?
Yes, you can buy Amazon return pallets.
Can I buy Amazon return pallets directly from Amazon?
No, you cannot purchase Amazon return pallets directly from Amazon. Amazon usually sells their returns to brokers who then resell it back to liquidators and resellers.
Buying Amazon return pallets can be a great way to get access to brand-name products for a fraction of the original retail price. You can find Amazon return pallets at liquidation stores, salvage stores and bin stores near you or online. It is important to do your due diligence and ask questions about the condition of the Amazon return pallets before buying them. With research and a bit of luck, you can find Amazon return pallets at a great price. Good luck in your Amazon return pallet search!
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