Not everyone is thrilled with their Amazon purchase. For whatever reason, they send the item back. Some of the main types of Amazon returns are sent back to the original seller, while others end up on pallets in an Amazon warehouse. Known as Amazon return pallets, they go up for sale every now and then.
You pay the selling price and the pallet is delivered to your address. Since you don’t know what items are on the pallet, opening each box is a surprise. You can end up with fashion, electronics, toys, and more. While so far, this sounds like a great way to add stock to your inventory there can also be a few downsides.
The Benefits of Buying Amazon Return Products
If you love getting surprises, Amazon pallets aren’t going to disappoint. You never know precisely what’s included with a pallet. Yes, you can pick pallets by category like electronics or fashion, but this only gives you a general idea. So, unwrapping a return pallet can seem like Christmas. What are the other benefits? Here’s a look at a few more reasons why you may want to invest in Amazon pallets.
Reduce Inventory Purchasing Costs
Whether you’re just starting your business or you’re running an established one, overhead costs are always a priority.
You want to sell your products at an affordable price point while still making a profit. This can be a complicated balancing act regardless of your business niche. You don’t want to save money by purchasing inferior products. This is a great way to lose consumers. However, you can save money on inventory costs with Amazon return pallets.
You can find pallets priced at around a few hundred dollars and since you’re purchasing bulk items, you’re reducing inventory costs. This means you can pass the savings on to your customers.
A Breeze to Resell
You have countless options when it’s time to resell the items included in an Amazon return pallet. You can list the items on your e-commerce site. You can even resell the items on Amazon.
If your pallet contains items that don’t go with your niche, no worries. You can sell these items at a garage sale. Another option is to list some or everything on social media. Platforms like Facebook have marketplaces members can use. You may also want to consider using location-specific apps.
How a location-specific app works is pretty simple. These apps allow you to list items for sale for nearby buyers to browse. When you make a sale, you arrange a place to meet the buyer, usually a public location. You exchange the goods for payment and everyone leaves happy.
Boost Profit Margins
Purchasing inventory at a discount almost always leads to improved profit margins. Best of all, you aren’t making a significant investment with an Amazon return pallet. The pallets are sold at a discount, which gives you some wiggle room with your price points. You can still sell the items at a lower price while still seeing a boost in profits.
Consumers may visit your e-commerce site to purchase a discounted item but end up buying additional odds and ends. Since return pallets are intentionally priced low, Amazon wants to get rid of them, giving you a little more leeway when setting your prices. Amazon return pallets can be a win for you and your consumers.
Potential Drawbacks of Amazon Return Pallets
Some of the same things that make these pallets a great option can also be a potential downside.
Limited Product Description
Amazon return pallets are sold by liquidation companies. In other words, you’re not purchasing the pallets directly from Amazon. Don’t worry, this doesn’t complicate the process. You simply choose a liquidation company and follow the prompts. The process is similar to ordering from the Amazon platform.
The downside is most liquidation companies either don’t provide an inventory list or it’s pretty limited. Even if you love surprises, sometimes a return pallet doesn’t live up to your expectations. For example, if you purchase a pallet labeled electronics. This doesn’t necessarily mean the pallet is packed with electronic devices. Instead, you may end up with boxes filled with wires and charging cables.
Not Everything is Sellable
Remember, you’re purchasing a pallet full of items consumers returned for a variety of reasons. Sometimes, the reason for the return is that the item is damaged. Instead of repairing or refurbishing the items, they go into a box on the pallet. If you purchase this pallet, you’ll end up with the damaged item.
Since a list of product quality isn’t included, you may end up with a pallet filled with unsellable items. Your options are limited when it comes to broken and damaged items. You can spend time and money on repairs. This means increasing the resale price just to ensure you break even. Sometimes, it’s easier to just toss any unsellable items. You may not be out the entire pallet purchase price but it does eat into your bottom line.
Difficult to Scale Your Business
Chances are, your goal is to grow your online business. Amazon return pallets can help you start a business for only a few hundred dollars but it’s also not sustainable. You’re still going to need to find another way to bring in additional inventory. Remember, you typically have no idea what’s included in a pallet even when you know the niche.
If your e-commerce site is dedicated to fashion, you may get lucky with a pallet or two. However, fashion is a broad niche and this doesn’t mean you’re going to be able to sell everything on the pallet. Product quality also varies with return pallets, and this can affect what’s sellable on your site.
After all, you don’t want to start selling inferior products. Even selling a couple of items that aren’t up to standards and negatively affect your brand. Depending solely on Amazon return pallets for inventory will limit your business’s ability to grow.
Amazon Return Pallets Can Be A Good Way to Bring in Additional Inventory
While you don’t want to depend on Amazon return pallets as your sole source of inventory, they can help fill in some empty spots. The return pallets can also make it easier to offer some items at discount prices, and this is something consumers appreciate. However, don’t forget about the potential downsides. Not every pallet is going to be a pleasant surprise.
