As an entrepreneurship consultant who has spent over a decade assisting small businesses, I have seen firsthand how reselling Amazon return pallets can be a highly lucrative opportunity. But with so many platforms and options for sourcing inventory, where exactly should you start?
In this comprehensive guide, I‘ll provide everything you need to know to successfully source and resell Amazon return pallets as a small business owner or solo entrepreneur.
The Big Opportunity in Amazon Returns
The size and growth of the Amazon return pallet resale market may surprise you:
- Amazon has a return rate of 18%, higher than many other retailers. This generates a massive volume of returns.
- Return pallet reselling generates over $5 billion in revenue annually in the US alone.
- The liquidation resale market is projected to grow at a CAGR of 13.4% from 2022-2027 as ecommerce continues expanding.
- Profit margins for resellers range from 20% to 100% depending on factors like product categories and sales channels.
With the right sourcing, marketing, and logistics strategies, this represents an immense opportunity to generate secondary income or even scale up to a full-time business.
10 Best Places to Source Amazon Return Pallets
Through extensive research and conversations with resellers across the US, I‘ve curated a list of the top 10 places to source Amazon return pallets:
1. B-Stock Solutions
B-Stock is a premier liquidation marketplace with direct access to returns from Amazon, Walmart, Target, and other big retailers. With their auctions, you can get incredible deals on pallets in all product categories.
- Direct relationships with major retailers
- Robust product variety and inventory volumes
- Transparent bidding with product manifests
Liquidation.com is one of the most well-established marketplaces with thousands of daily auctions on customer returns, closeouts, and excess inventory.
- Broad range of liquidated merchandise
- Strategic warehouse locations enable cheap, fast shipping
- Intuitive platform and various buying options
3. GENCO Marketplace
GENCO offers quality control by refurbishing and repackaging returns before resale. They specialize in bulk quantities of liquidated goods.
- Specializes in bulk lots of returned & excess products
- Refurbishment ensures products are sellable
- Great for acquiring volume and variety
BULQ acquires inventory directly from retailers and manufacturers and resells at fixed, quoted prices.
- Huge selection across conditions from new to salvage
- Detailed manifests provide product transparency
- No bidding – buy instantly at quoted pricing
5. Direct Liquidation
Direct Liquidation buys surplus and returns directly from big retailers and processes goods in-house before listing on their marketplace.
- Direct purchasing creates wide product variety
- Processes goods in-house to ensure quality
- Massive inventory across many product categories
BlueLots is an online B2B marketplace specifically designed for resellers. They offer buyer-friendly features like product detail, bulk quoting, and discounted shipping.
- Intuitive platform designed for resellers
- Detailed product descriptions
- Bulk quoting and discounted shipping incentives
7. 888 Lots
888 Lots adopts a data-driven approach, providing sales history and price data to enable informed bidding.
- Sales data including sell-through prices
- 30+ product categories to choose from
- Advanced search and data filters
8. American Merchandise Liquidators
With 20 years of experience, American Merchandise Liquidators is a trusted source for pallets, lots, and truckloads.
- Pallets, lots, truckloads across all products
- Massive warehouses across multiple locations
- Brick-and-mortar and online purchasing
TechLiquidators specializes in reselling large quantities of consumer electronics sourced primarily from Best Buy.
- Specialized in electronics from TVs to laptops
- Items often new open-box or refurbished
- Ideal for tech resellers or electronic flippers
10. Walmart Liquidation Auctions
This official platform runs auctions on truckloads of returns and excess goods from Walmart stores and DCs.
- Official Walmart liquidation channel
- Huge product variety and quantities
- Bulk sizes (truckloads and LTL)
- Can find Amazon returns sold via Walmart Marketplace
How to Choose the Right Sourcing Platforms
With so many platforms available, here are some tips on selecting the right options for your business:
- Evaluate product categories – Choose platforms aligned with the products you want to resell based on expertise, existing inventory, and profitability.
- Assess pricing models – Auctions offer the most potential for deals but carry risks. Fixed pricing provides predictability. Choose what fits your risk tolerance.
- Compare delivery options – Consider delivery timelines, shipping rates, and pallet customization options.
- Read seller reviews – Check feedback from other buyers on items received, customer service, transparency, etc.
- Start small – Don‘t overcommit upfront. Test platforms with smaller purchases first.
Best Practices for Profitability
Once you‘ve sourced pallets, here are some tips to maximize your profits:
- Inspect thoroughly – Upon taking delivery, unpack and inspect all items, testing electronics. Be conservative when assessing condition.
- Research pricing – Use Keepa and CamelCamelCamel to assess historical pricing and trends on Amazon and eBay. Factor in fees and shipping costs.
- Focus on ROI – Look for small high-value items like electronics over bulky low-price goods. Prioritize profit margin over volume.
- Refurbish when possible – Invest some time into cleaning, testing, and refurbishing items to increase their resale value.
- Sell across multiple channels – Leverage Amazon FBA, eBay, Craigslist, Facebook Marketplace, and your own store.
Reselling Amazon return pallets represents an incredible opportunity for entrepreneurs to acquire inventory at a fraction of the cost and "flip" items for substantial profits. This guide provides a roadmap to sourcing pallets from the best platforms and optimizing operations for maximum profitability. With the right strategies, an Amazon returns resale business can offer the potential for a lucrative side hustle or even a full-time business.