Returning unwanted products is an integral part of Amazon‘s customer-friendly policies, with over $600 billion worth of goods sent back annually. Handling individual returns can be quite cumbersome and costly for Amazon. Instead, the company often opts to resell returned items in bulk via discounted return pallets.
As a small business owner or entrepreneur, buying and reselling merchandise from these money-saving pallets can be a lucrative opportunity. This comprehensive guide will illuminate techniques to efficiently source, purchase and profit from Amazon return pallets.
A Primer on The Lucrative Amazon Returns Reselling Industry
The returns reselling industry has ballooned in recent years. In fact, returned merchandise handled by liquidators is expected to be a $728 billion market by 2025, as per Grand View Research.
Amazon return pallets specifically offer tempting profit margin potential:
- Return pallet lots are typically priced 40 to 80% cheaper than item retail values
- Resellers can often double or triple their money upon selling pallet items
- Profit margins may reach an average of 30% to 50%
From 2016 to 2021, returns reselling has grown by nearly 400%. As ecommerce continue expanding exponentially, projections indicate significant growth runways ahead.
Below data highlights the potential scale of this homegrown business opportunity:
| Current Projected Size of Returns Reselling Market | $728 billion by 2025 |
| Typical Pallet Lot Discount Compared to Retail Value | 40% to 80% lower |
| Profit Margin Potential | 30% to 50% |
Entrepreneurs buying return pallets can profit from this multi-billion dollar industry while avoiding risks like managing inventory, marketing, or product R&D. Let‘s explore step-by-step how to tap into this business model.
Buying Pallets: Where to Source and What to Look For
Sourcing merchandise is the first step for entrepreneurs entering returns reselling. When buying Amazon…
