As an Amazon seller, you need to be aware of the returns policy and how you are expected to respond to customer queries and then what you can do with the item once it has been returned.

For the buyer, you need to understand when you can return and how to prepare the package.

Yet, more interestingly, there is an opportunity in learning how to buy Amazon Returns and potentially make some money. This opportunity is the focus of our guide.

What is Amazon Returns?

There are two choices when you need to return a package to Amazon.

Choice one: you request a refund and the seller will then expect you to package and return the product. You may not have this choice available to you, depending on the terms set up by the seller.

Choice two: you can put your returns package up for sale. What you may consider rubbish and not worth the money, for someone else it could be an inventory that they can flip into a profit.

The good news is that Amazon’s return policy is in favor of the buyer. A customer can return all orders within 30 days, for whatever reason. It need not be damaged or defective, they may merely have realized that the product is not for them.

Most products are returned in the original packaging, without ever being opened. The downside for the Amazon seller is that they can no longer sell this as new, even though it is still in its original condition.

Many of the returns end up in the Amazon Warehouse. Here you can buy the items at a discount price.

The downside of Amazon Warehouse is that the packages have usually been opened and maybe even used – but they are still in good condition.

To access the returned but unopened packages, you need to buy through the online US-based liquidation marketplace or the European liquidation marketplace.

Here you buy lots.

You can get a bundle of returns and overstock inventory, likely in various sizes and parts.

Be aware that liquidation lots are only casually collated, and you may end up with a lot of random products.

Things You Should Know of Amazon Returns

First, Amazon only sells liquidation pallets to businesses. Consequently, if you are seeing an opportunity as an Amazon seller, you will need to access the pallets from a third-party wholesaler or liquidator.

Second, you need to remember that there is a degree of mystery and you might not get what you hope to get.

The pros and the cons of Amazon Returns

Before you step into the world of Amazon Returns, you need to be aware of the pros and cons. You can only plan to maximize the positives when you know the threats and opportunities,

The significant downsides come when you choose the wrong third-party wholesaler or liquidator. As with anything in business, you need to source the most reliable supplier.

Therefore, you should research, reading the reviews and testimonials of people who have used the sites before you. Read the testimonials with care, making sure you are happy they are genuine.

Even from the better suppliers, you will find a mix of quality on a pallet and in the end, the products you receive might not be worth the price you paid with the added freight costs on top.

To make sure you get the most from your pallet, you need to be certain of your pricing and have contingencies in place for substandard products.

Despite these threats, the advantages of buying from Amazon Returns is significant.

You will find you are paying a much lower cost per item than you would get from buying from retail and maybe even wholesale.

These lower costs can maximize your margins or you can offer super competitive prices to your buyers.

You do have the opportunity to be selective and with a bit of care and research, you can be sure that the category of products you select will offer a better return.

Maximizing the positives of Amazon Returns

Although you can flip Amazon return pallets and make a fair profit, this is not an easy get rich quick scheme.

Selling from an Amazon Returns liquidator is a business opportunity and with an opening for-profit, requires some preparation and clever decision making.

Start small

It is a good idea to buy just one pallet from a liquidator at first. You are making a smaller investment to see what the pallets are like from this provider and the efficiency of delivery.

The more you buy from an unknown liquidator, the bigger the risk you are taking. Therefore, when going in blind with a supplier take smaller steps first.

Manage expectations

You should also plan for some products on the pallet being used or damaged. You should be prepared for the original packaging to be missing or ripped at the least.

Therefore, you will need to think about how you are going to send these to your buyers and how you manage their expectations.

You should prepare yourself for a third of the products on any pallet being worthless. Your hope is that the rest will counter the losses here.

Approach electronics with care

You might not want to begin with a pallet of electronic items. Your initial investment on technology will be higher and the chances that the products don’t work is higher.

Dollar signs might ping in your eyes, as you imagine the margins. However, profits can quickly be squeezed by the number of items that you cannot sell on without some impressive creativity.

If you are skilled enough to farm the spare parts from the products, then our advice would be different. If you don’t have this skillset, leave electronics until you are more experienced.

Shipping costs

When considering your profits and making calculations, factor in the freight costs. You will need to pay for the shipping of the pallet, which can weigh in the hundreds of pounds.

Your freight costs could be more than the combined amount you pay for the goods on the pallet. You may want to choose a liquidator who is driving distance from your home – you could save a lot of money.

Rapid sales model

You do not want to be responsible for holding a lot of inventory. Your pricing strategy needs to take account of the cost to you if the item does not sell quickly.

It is fine to imagine profit and set a significant margin. However, when you are selling returns you are dealing with a consumer who is expected a bargain.

It is better to sell more than it is to sell a single item for a high price. It is better to squeeze your margins than it is to squeeze your customers.

Use spare cash

Using Amazon Returns as a selling strategy is a risk. As with any risk, there is a chance of a higher reward but also a greater possibility of a loss.

Therefore, you should only buy from a liquidator with money that you can afford to lose.

It is not one of those business opportunities that you should risk your life savings on.

Ok, if you have made up your mind to step in this kind of business, you may wonder where can you buy Amazon return? Keep reading!

Where Can You Buy Amazon Returns?

amazon liquidations-buy amazon return

Below we will introduce some of the companies that sell Amazon return at fair prices.

Direct Liquidation is one site you could use to source your Amazon Returns. This site promises to only partner with reputable retailers and top-tier companies – not only Amazon but Walmart too.

They are transparent in their sales of electronics and are clear that the product may be damaged or not working but they also claim that somewhere between 45 and 70% of merchandise comes back “in a completely unused condition.”

They note even the item considered as scrap is an opportunity to make a profit. However, they also explain that they do not touch the returns.

The items are bundled, listed and sold as-is. They suggest selecting overstock if you want products in a completely unused condition, though the price will be higher.

Lush Dollar is another site where you can source Amazon Returns. They equate the purchase of a returns box as something similar to Storage Wars on TV. Some boxes will be a “gold-mine” and some will give you maybe only “20% of your money back”.

Liquidation.com is one of the largest liquidation companies on the internet. It works with not only Amazon, but over 11,000 clients. It is popular among customers to buy Amazon return and resell for profits.

Be careful while browsing the return box and read the details before you make a bid. You will have no idea until you open the box in your home!

What People Say About Amazon Returns

So, what have the people who have taken the leap said about the experience?

One customer feels that the liquidation companies sift through pallets removing anything of worth and bundling the rest to sell to people looking to flip returns.

As Anon noted in 2019, “the time it takes to just get these items ready for resale will negate any potential profit.”

Yet, it was clear that the real profit comes when you get something like vacuum cleaners, and you can “reduce those vacuums to the sum of their parts and sell off the valuable parts.”

In short, it takes some imagination to turn a real profit. Much of the commentary on forum threads boil down to these simple opinions time and again.

It is worth it but only if you are willing to show some entrepreneurial spirit in how you deal with the whole of the pallet.

Here is a popular video of explaining how is the Amazon return:

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Conclusion

Amazon Returns offers a potential business opportunity. With the relaxed 30-day rule in the Amazon returns policy, a lot of material is returned to the company that is in the same condition as sent previously.

Yet, some will also be damaged and some beyond repair. With some risk, a hint of imagination and a lot of work, you could turn one of the liquidator pallets into a fair profit.

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