Amazon customers are generally happy with the online retailer’s return policy: it’s incredibly lenient. But, relaxed return policies on online shopping on sites like Amazon means higher return rates (versus those who shop in person). If you’re a reseller, this could be a big benefit to you. From a side hustle to a full-time business, reselling is becoming more and more popular and lucrative. This article will cover where Amazon returns go and how you, as a reseller, can cash in.
So, where exactly do Amazon returns go?
It’s common for online retailers to see more than 25% of products ordered online returned, as compared to less than 10% in brick-and-mortar stores. Only, when it comes to online retailers, sales are growing exponentially every year so you can imagine the amount of returns. In many cases, online retailers will not put the items that are returned by customers back on virtual shelves.
According to recent industry figures, Amazon is the leading online retailer in the U.S., and the company’s 2018 net sales were close to 232 billion dollars and sales are expected to increase every year for the foreseeable future. If you consider 25% of the $232 billion comes back and that a large chunk of that does not go back into rotation, this means that every year there are large amounts of liquidation inventory from Amazon available to be resold. For resellers, this means big business in purchasing these items that Amazon chooses to liquidate.
Have you thought about buying Amazon returns and reselling them?
Here is what you need to know when purchasing returns from Amazon:
How Items Are Sold
There are a few ways you can buy liquidated Amazon items in bulk, by the pallet or truckload. The larger the order, the bigger the discount. Items are either sold at a fixed price or through an online auction marketplace (like the ones B-Stock operates). For purposes of this article, we’ll focus on Amazon’s online auction site, Amazon Liquidation Auctions.
How To Get Started
You will need to register for Amazon Liquidation Auctions in order to start bidding on bulk lots of a wide variety of products including apparel, home & garden, recreation, and toys & baby items. In order to register, you will need to have a reseller certificate form to submit with your application. Once approved, you can immediately bid to win Amazon liquidation inventory. If you do not currently have a reseller certificate but would like to learn more about how to apply for one, please read Buying Basics: Resale Certificates. Some states do not require a reseller certificate as that state does not collect sales tax.
Know Your Costs
When bidding on an Amazon liquidation auction lot, be sure to factor in details like shipping costs as well as what you’ll need to sell an item for in order to make a profit.
Many large retailers, including Lowe’s, Home Depot, Walmart, and Best Buy all sell overstock and returned items via online auction sites. Check out B-Stock’s sourcing network to see what auction lots are available.
Ready to get started? Check out our tips on how to become an online power seller.
B-Stock is the world’s largest online marketplace for returned, excess and other liquidation merchandise. Our customers range from SMB to the world’s largest brands and retailers (including nine of the top 10 U.S. retailers). Led by eBay veterans, B-Stock completes over 150,000 transactions per year, selling 70 million items annually. The amount of inventory that is returned or unsold each year is growing rapidly. In 2018, the value of this merchandise was estimated at $500 billion. Much of it ends up being liquidated for pennies on the dollar; some of it is even destroyed or landfilled. We believe there is tremendous value in and demand for this inventory – no matter the category, condition or location. The B-Stock platform gives buyers a simple and direct way to buy valuable products, and offers sellers a trusted replacement for traditional liquidation and a critical boost in operational efficiency.