According to a report from Adobe Analytics, consumers are projected to spend $1 trillion online with U.S. merchants. As impressive as that number is, that doesn’t mean that everyone receives their products and lives happily ever after. From 2019 to 2020, eCommerce returns jumped 10.6% to 16.6%, respectively. That’s approximately $761 billion of merchandise bought online that was returned. Now imagine what a statistic that high means for eCommerce giant, Amazon. Of their 200 million Prime members, one might assume that has the potential to be a lot of returns! You would be correct. 

The Growing Rate of eCommerce Returns

10.6%

% Returns in 2019

16.6%

% Returns in 2020

With so many returns out there, what are retailers to do? Liquidate. We’ll cover more of the reasons why companies like Amazon choose to liquidate (and how) but by now, the business-savvy mind might be wondering if there is value in buying pallets of Amazon returns. Amazon returns specifically, can be filled with mixed merchandise and specific categories, like apparel and consumer electronics. 

In this post, we’ll break down:

  • What happens to customer returns
  • Why you should consider buying return pallets
  • How to buy Amazon return pallets
  • Where to look for quality returns

Where Do Amazon Returns Go?

Common reasons shoppers make returns

So we know consumers do their fair share of buying, but just how much of that merchandise do they keep? 30% of all online purchases get returned, versus the mere 8.9% of goods that are returned to physical stores. This shouldn’t be shocking considering nearly 49% of retailers in the U.S. offer a free returns shipping policy. In reality, it is convenient for customers, but a headache for retailers. Amazon especially has one of the most customer-friendly return policies. Some of the top reasons consumers return their online purchases include: 20% receive damaged products, 22% of products received look different, and 23% receive the wrong item.

20% Received damaged product

22% Product received looks different

23% Received wrong item

35% Other reasons

What does Amazon do with its returns?

It’s naturally 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-saving perspective for companies to liquidate these returned products. As the saying goes, out with the old and in with the new. 

When it comes to liquidating, major retailers want to move merchandise fast and for cheap. Large retailers like Amazon sell pallets of customer returns to liquidators—giving small businesses and resellers access to that merchandise. Warehouse liquidation is essentially a tale as old as time. Clearing out overstock, customer returns, and seasonal items has always been necessary in order to bring in new merchandise. Liquidation companies make sourcing high-quality branded and unbranded merchandise easy, accessible, and affordable. However, there is a level of transparency lacking in these transactions. This is why over time, the liquidation process has simply moved online. 

Thanks to growing technology, buying Amazon returns off the internet can be as easy as logging on to your computer or mobile device. And even better news for resellers is that not every Amazon return is damaged or faulty! Like we said, sometimes items get returned for other reasons that include buyer remorse, simply not needing the item anymore, or expecting it to be different. For that reason, many of these customer returns will be new and in unopened condition.

Browse Amazon Returns

Why Buy Amazon Return Pallets

Anyone can get started buying Amazon return pallets. Some start with a few hundred dollars to thousands in savings, or a line of credit. And when it comes to reselling, there are so many avenues you can go. From local flea markets to growing resale platforms like Poshmark, Thredup, OfferUp, and others.

Examples of resale platforms

If you’re thinking of starting a new business or want to have a side gig, sourcing these liquidation pallets is a good way to build your inventory. If it’s sold on the primary market, chances are you’re going to find it in the secondary market, too. Everything from home and garden equipment to apparel, electronics, and health and beauty products are being resold 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. 

You can also do a fair bit of bulk purchasing and get your hands on a lot of inventory at once! This makes sense if you have plenty of resale channels ready to go or you own a discount store, regularly attend flea markets, or are planning on exporting.

The steadily growing business behind Amazon returns is no joke, that’s what makes getting in on the action with your own liquidation resale business a smart move. 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. If you’re already reselling on a smaller scale and are ready to level up, then buying Amazon returns pallets and truckloads could be a good next step. 

Where to Buy Amazon Return Pallets

Historically, it has been difficult for small to medium-sized buyers to buy excess inventory directly from large retailers and manufacturers; however, today there are new, efficient systems that automate the manual work otherwise required for them to sell to larger buyer groups. One such tool is an online auction marketplace platform.

Register Now

To be successful in reselling you must do research every step of the way. Do your homework on the different companies offering liquidation and wholesale inventory. Decide whether you’d rather source direct liquidation or from a wholesaler. B-Stock helps some of the world’s largest retailers and manufacturers liquidate overstock and returns—Amazon return pallets included!

Amazon Liquidation Auctions

Amazon Liquidation Auctions

If you’re looking for a wide variety of inventory for your business, Amazon Liquidation Auctions is a top choice. Registered business buyers can buy liquidation pallets directly from the world’s largest eCommerce company. U.S.-based buyers can bid on LTLs (less than truckloads) of overstock home goods, apparel, books, consumer electronics, groceries, footwear, accessories, and more. Once registered and approved by Amazon, start bidding and buying bulk lots of overstock inventory.

Register on Amazon Liquidation Auctions today!

How to Buy Amazon Return Pallets

Knowing what to expect when buying liquidation pallets is half the battle. Some items will be ready for resale immediately, others might require some repair, and some can even be sold for parts. Merchandise sold by the pallet is deeply discounted. This means reselling them for a profit (or closer to MSRP) is where you’re going to make your money back! Let’s go over a few basics so you know exactly what to expect when buying Amazon return pallets.

Find a reputable seller

Take into account the 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 could save you from shady deals involving sellers posing as reputable sources! Good thing B-Stock gives registered buyers direct access to Amazon’s returns and other liquidation inventory! 

Check for online reviews

Online review sites like Trustpilot.com are a good resource to keep bookmarked. You will need to start compiling your research whether that be on an Excel sheet or a series of tabs open to compare pricing and other auction listings. Getting as much insight into the product, company, quality of goods, and return policies will help you make more informed bidding decisions. Usually the case of liquidation merchandise, every sale is final. But every retailer and marketplace has different terms and conditions.

Understand conditions

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. Some merchandise categorized as salvage even serves its purpose for repair shop owners and anyone looking to source parts. Check the manifest associated with any Amazon return pallets you might be interested in to get a clear idea of item quantities, descriptions, and estimated value. 

Luckily, Amazon Liquidation Auctions follows the same uniform product and packaging conditions as most B-Stock marketplaces

B-Stock Product Conditions

Consider your shipping costs

Any successful reseller will tell you the cost of shipping is what will make or break a decision. In some cases, the shipping may cost more than the pallet of returned goods. Prepare yourself by budgeting this cost before you bid. Some sellers will give you the option to pick up pallets from warehouse distribution centers, if you luck out and are within driving distance try and take advantage of this option!

If you have the capacity and capital, bulk purchasing or consolidated shipping will help alleviate some of these costs so you don’t end up spending hundreds on individual, smaller shipments.

Buy Amazon return pallets on B-Stock

Amazon customer returns and overstock can be a profitable opportunity for your resale business. You can find anything in these pallets and truckloads – from seasonal merchandise to recently returned best-selling Amazon products. Now that you’ve started your research, you’ll be buying Amazon return pallets in no time. 

Remember, your first step is to create a registered business and get a resale certificate; the rest you can tackle one step at a time. Start buying liquidation inventory on B-Stock, the largest global network of B2B liquidation marketplaces. If you’re looking to buy liquidation pallets from specific stores you can do that, too!

Join the largest global network of B2B liquidation marketplaces.

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Andrea Vargas

Andrea is the lead content writer for B-Stock Solutions, the largest online network of B2B liquidation marketplaces. She specializes in creating buyer resources and tools for entrepreneurs and power buyers looking for liquidated merchandise.

Amberly Bliss, Owner

Retail Deals

"I feel so confident shopping and bidding on items knowing that I am going to get what I paid for. And if not, there’s a killer customer service team that’s going to make sure everything’s alright in the end. That’s huge. It’s hard to take that risk when you’re first starting out."

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