How to make profit from buying Amazon returns

July 27, 2022 9:42 am

Convenient for customers, but a headache for retailers, selling returned inventory can be turned into a profitable business if you prepare and do your research well. Amazon returns are ideal for resale businesses, as you can make an easy profit by reselling them.

Since becoming e-commerce world leader in 2016, Amazon has set the pace for the other retailers. With their consumer-focused approach they popularized returns, and after that, everybody followed. Having the right to cancel and return a product that was bought online is one – on the consumers’ side at least – one of the great advantages of shopping online.
In Europe, online consumers have the right to cancel and return their order within 14 days. They don’t need to tell the retailer why they are returning the item. Blame it on the quality of product, the wrong size or having second thoughts: what consumers worldwide buy and then return totals a staggering $642.6 billion per year. The most common category of returned merchandises is apparel and shoes at 30-35%, according to Transport Topics.

So it’s worth asking – where do so many Amazon returns go? Retailers and sellers on Amazon could put them back on virtual shelves, but think of the cost it would take to inspect, repack, and relist. It is more attractive from a cost and time-savings perspective for companies to liquidate these returned products.

The good news for you, as a reseller, is that not every Amazon return is damaged or faulty. As mentioned before, sometimes items get returned for other reasons that include buyer remorse, simply not needing the item anymore, or expecting it to be different. So that means many of these customer returns will be new and in unopened condition.
Another great benefit of buying Amazon return pallets is the low price. You can purchase return pallets in great condition from liquidators that offer high-quality stock at a very low price.

Therefore buying Amazon returns is a great way to earn extra money. However, there are a few things to keep in mind, if you’d like to make the most profit out of this:

• Research which category can be profitable for you. Everything from home and garden equipment to apparel, electronics, and health and beauty products are being returned every day. You can choose to specialize in a specific category or start with general merchandise pallets and see what works best for you, and ultimately, your customers. When you consider the variety of inventory on Amazon return pallets, these bundled up lots might just be a gold mine for you and your resale business.
• Focus on selling items of high retail value. These items are in great demand in the market and are included on Amazon’s list of “Bestsellers”. You can also profit by reselling these items on eBay.
• Be prepared knowing what to expect. Some items will be ready for resale immediately, others might require some repair. Make sure you know which condition of inventory you’re bidding on and have the time it takes to make any necessary repairs if required.
• Try to buy as close to the source as possible. There are liquidation companies that buy directly from Amazon and which will provide you with good, curated inventory that will make your life much easier.
Find a reputable seller. Take into account the online reviews and experiences of other online resellers who have used the platforms you’re looking on. They might have helpful insights as to where to source certain categories and who you should steer clear of. Customer experience is another factor you’ll want to pay close attention to, it will make a difference between a good or bad experience, because usually the case of liquidation merchandise, every sale is final
Calculate your shipping costs. Sometimes the cost of shipping is what will make or break a decision. Don’t be surprised if/when the shipping costs more than the pallet of returned goods. Prepare yourself by budgeting this cost before you bid. Some sellers will give you the option to group orders to save money on transportation.

To be successful in reselling you must do research and plan every step. ARLL helps some of the world’s largest retailers and manufacturers liquidate overstock and returns – Amazon return pallets included. Check here to see our latest offers of returned goods.
If you are just starting your business and you want to get the best balance between overstock items and returns, we have prepared the best mixed lots for you!