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Are you a mom looking for a flexible way to boost your family’s income? You might have heard about buying and reselling Amazon return pallets as a potential side hustle, with the added bonus of potentially scoring some great deals. But is it too good to be true? It sounds enticing, doesn’t it? The idea of purchasing discounted items and selling them for a profit, all while working from home, certainly caught my attention, too. But before you give this a shot, let me share my real-world experience with this trendy money-making opportunity.
In this article, I’ll walk you through the ins and outs of buying Amazon return pallets. You’ll learn what they are, how to get started, and most importantly, whether this side hustle is worth your time and investment. By sharing my personal experience and the lessons I’ve learned, I hope to give you the insight you need to make an informed decision about whether this opportunity is right for you and your family.
Also See: How to Make $1,000 a Month Selling Part Time on Amazon FBA!
Why Consider Amazon Return Pallets?
On paper, this opportunity looks appealing. You buy a pallet of returned Amazon items at a discount, then resell them for a profit. It’s flexible; you can do it from home, and it’s like Christmas morning when you open that pallet!
Plus, there’s the feel-good factor of giving these returned items a second life.
My Real-Life Amazon Pallet Adventure
Last fall, I decided to try my hand at buying Amazon return pallets. After some research, I learned that the best way to buy Amazon return pallets is directly through Amazon or through a liquidation company. Since this was my first auction, I started with Amazon Liquidation Auctions, where you can buy overstock merchandise directly from Amazon.
One thing I quickly realized is that the more you’re willing to buy, the cheaper the cost. Typically, liquidated items from Amazon are sold either by the pallet or the truckload. When you buy liquidated merchandise from Amazon, the pallet or bundle usually carries an “estimated retail value,” and it’s almost always sold off via an auction.
Feeling both excited and nervous, I participated in an auction and ended up winning two pallets for $800. The estimated retail value was much higher, so I thought I was about to unlock a treasure trove of sellable goodies. I could already see myself turning a tidy profit and finally having that flexible side hustle I’d been dreaming of.
Reality, however, had different plans for me. Out of those two pallets, I ended up with less than 40 sellable items. That’s about $20 per item. And here’s the kicker – nearly half of those items were worth $25 or less. So much for my dreams of easy money!
Now, I don’t want to paint too gloomy a picture. I did end up in the black, meaning I made a small profit. But it wasn’t the goldmine I was expecting. And the process? It wasn’t exactly the fun, flexible side hustle I had envisioned.
The amount of time I spent sorting through items, testing electronics, and trying to piece together incomplete sets was more than I expected. Not to mention the space these pallets took up in my garage – my husband was not thrilled, to say the least.
This experience taught me that while Amazon return pallets can be a source of income, they’re far from a get-rich-quick scheme. They require a significant investment of time, space, and energy – factors that are easy to overlook when you’re caught up in the excitement of potentially scoring great deals.
Other Takeaways About Amazon Returns
- Returns happen for a reason: Often, that reason is “It’s broken.” You’ll need to test every single item, which is time-consuming and often disappointing.
- Size matters: Most items were too big to ship, so I had to resort to selling on Facebook Marketplace.
- Incomplete sets are the norm: Many items come with missing parts, making them difficult to sell.
- It’s a gamble: You never know what quality you’re going to get. You might end up with valuable items or a pallet full of broken goods.
How to Get Started with Amazon Return Pallets
If you’re still intrigued despite the challenges, here’s how to begin:
First, you’ll need to find reputable sellers. In addition to trying an Amazon liquidation auction, look for established liquidation companies like Liquidation.com, DirectLiquidation.com, or B-Stock Solutions. These platforms often have contracts with major retailers and provide detailed manifests. From talking with other sellers, I found out that many Amazon pallets are primarily filled with no-name private-label brand items. While there’s money to be made in pallet liquidation, there are many shady liquidators who cherry-pick their pallets.
Next, research the legal aspects. Before reselling, familiarize yourself with your local laws regarding resale businesses. You may need to register as a business and obtain a resale certificate for tax purposes.
Lastly, be prepared for a significant time investment. Plan to spend at least 10-15 hours per week sorting, testing, listing, and shipping items from a single pallet. This can vary based on the number and types of items you receive.
Managing Risks and Expectations
If you’re still thinking about giving this a shot, here are some tips to manage the risks:
Start small. Try a smaller pallet or even a few individual items first. This way, you can get a feel for the process without risking too much money.
Diversify your inventory. Mix it up with different types of items. This can help you figure out what sells best in your market.
Be realistic about your expectations. This isn’t a get-rich-quick scheme. It’s hard work with unpredictable results. Some weeks you might strike gold, others you might struggle to break even.
Know your market. Take some time to identify items that sell well in your area and focus on those when possible. This could mean looking for electronics in a college town or outdoor gear in a rural area.
And whatever you do, never buy a pallet without a manifest. This is crucial. You need to know what you’re getting into before you invest your hard-earned money.
Is This Right for You?
Before you jump on the pallet bandwagon, take a moment to really think about whether this fits your lifestyle. Do you have the space? And I’m not just talking about room for the pallet itself. You’ll need an area to sort, test, and store all those items. Can you invest the time? Keep in mind, this isn’t a “set it and forget it” kind of business. You’ll be spending hours sorting, testing, listing, and communicating with buyers.
Are you okay with uncertainty? Some weeks might be great, others… well, let’s just say you might wonder why you ever thought this was a good idea. And do you have the patience to deal with broken items and incomplete sets? Because trust me, you’ll encounter plenty of those.
Additional Considerations
Let me break down a few more things you should consider before starting. First off, the quality issues. Most returns happen for a reason, and often that reason is that the item is broken or doesn’t work as advertised. You’ll need to test everything and be prepared to discard a fair number of items.
Then, there’s the cost and profitability to consider. In my experience, I spent $800 on two pallets and ended up with less than 40 sellable items. That’s $20 per item, and nearly half of those were worth $25 or less. Not exactly the profit margins I was hoping for, especially considering the time I had to put in!
Logistics can be a real challenge, too. Many items may be too big to ship, which limits you to local selling platforms like Facebook Marketplace.
Incomplete products pose another significant challenge. It’s incredibly frustrating to unpack a kitchen set only to find that half its pieces are missing. These incomplete items are not only difficult to sell but also time-consuming to inventory and list accurately. You’ll often find yourself deciding whether to sell items at a steep discount or attempt to source missing parts, neither of which is ideal.
The market for these items is also pretty saturated in many areas. Finding a profitable niche can be challenging, especially when you’re just starting out.
And let’s not forget about the time commitment. This side hustle can be incredibly time-consuming, especially when you’re learning the ropes. You’ll need to factor in time for sorting, testing, listing, and customer communication. It’s not just about buying a pallet and watching the money roll in.
The Bottom Line
I’m all for finding creative ways to boost our family income. I know there are people who are making good money at this, but after my experience, I can safely say that buying Amazon return pallets isn’t going to be my ticket to early retirement.
That being said, if you’re still intrigued, go into it with your eyes wide open. Start small, do your research, and most importantly, don’t invest money you can’t afford to lose.
There are plenty of other side hustles out there that might be a better fit. Sometimes, the best way to save money is by not spending it on a pallet full of surprises!