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July 21, 2022 6 min read


By now, many people have seen videos online of someone opening a huge box from Amazon filled with returns. Some boxes turn out amazing, while others only have a few neat items. Can anyone buy these boxes? And can the items purchased be sold to make a little money?

Amazon does sell pallets (as well as truckloads) of returned items and liquidations. These pallets can be purchased by anyone, though not necessarily through Amazon, and the items can be resold, allowing the buyer to make a profit. The amount of the profit, however, depends on what's in the pallet. 

Pallets are filled randomly, so each one will be different. It's crucial for buyers to be aware of this and to know how to pick out a pallet that will have the highest chance of helping the buyer make a little bit of money. Those interested in selling pallets of returned items and liquidations will want to take time now to learn more about how it all works before diving in and buying wholesale pallets. 



What Are Amazon Liquidations?

When a seller isn't able to sell products or they decide to go out of business, they have to have a way to get rid of those products. Throwing them away can cost money, as can trying to return them to the manufacturer. Liquidation is one of the solutions that many sellers opt to use. With a liquidation, sellers package bundles of items together and sell them for a basic price. This price allows them to get rid of the products yet still have a little money to cover their costs. 

Where Liquidations Come From

Any sellers on Amazon can choose to liquidate their inventory. They can do specific items or close the business and liquidate all items remaining in Amazon warehouses. In some cases, sellers will opt to turn on automatic liquidation, which allows them to have an item automatically liquidated if it doesn't sell within a certain amount of time. 

What Items Can be Liquidated

Almost anything can be liquidated, with a few exceptions. Sellers cannot liquidate dangerous goods, such as items that are considered hazardous. Sellers are also not able to liquidate anything that the manufacturer has recalled. Since these items are considered dangerous, they must be disposed of properly instead of liquidated. Lists of recalled items are available online for those who want to check products before buying or selling them. 

Why Inventory is Liquidated

Inventory is often liquidated because it isn't selling fast enough. Sellers who use FBA do not have to worry about warehousing space, but they do have to pay for items to be stored with Amazon. If the item doesn't sell, it costs them money, and sellers can minimize these expenses by liquidating. Liquidations can also occur if someone decides to eliminate their inventory and stop selling products. 

Who Can Purchase Liquidation Pallets

Liquidation companies are the ones who can purchase larger amounts of items and bigger pallets. Customers do have access to some boxes and liquidation or return pallets, depending on how they're being sold. If a customer would like to purchase a larger pallet of returns or liquidated items, they can do so through one of the companies that contract with Amazon. Many liquidation warehouses will contract with Amazon to buy pallets and sell them to customers. 

Benefits of Purchasing Wholesale Pallets

Many people purchase these pallets to see what they can get from them. It's possible to get items at a steep discount compared to retail prices. Other buyers, however, will purchase boxes and pallets to see if they can find items to sell. Even though items may not have sold for the previous seller, it could be possible to sell the items on another site and make some money. 

Making Money From Liquidation Warehouses

Buyers of these wholesale pallets do have the opportunity to go through the boxes to find things that can be sold. To make the most money possible, it is essential to be careful when buying pallets and know how to generate higher returns than the pallet's cost. 

Know the Merchandise Available

Buyers will want to know what kind of merchandise they can find in the liquidation or return pallets. Though the items are placed randomly on the pallets, they are typically boxed with similar items, so one box may contain clothing while another includes electronics. Much of the items available will be in good working order, but the products in pallets can be damaged or defective. 

Learn How to Purchase Products

Smaller boxes are available directly through Amazon, but buyers looking for bigger pallets and better deals will want to go through a liquidation warehouse like Pennies for Gold. Liquidation warehouses will often list the pallets available, their contents, and the cost. Buyers can scrutinize these listings to pick out the right pallets to buy. 

Find Out About the Different Sources

Items in the pallets can include returns, things that didn't sell fast enough, or items that are now out of season. It's a good idea to consider where the items in a pallet will come from, if that information is available, and why the items are being liquidated. Knowing this can help buyers make sure they're getting a good deal. 

Generate Higher Returns for the Investment

It is possible to make money by purchasing wholesale pallets of returned items or liquidations and reselling anything in good condition, but it is essential to be careful when picking out a pallet. It's also a good idea to choose items that sell in the area and avoid seasonal items unless there is plenty of room to store them. 

Be Aware of Downsides

While buyers can make money from the boxes, they should consider the downsides before buying everything. It is important to remember that items may not be sellable or more challenging to sell than usual, leading to lower profits. By selecting a pallet carefully, it may be possible to avoid these downsides. 

Tips for Choosing the Best Liquidation Pallets

By being selective about the liquidation or return pallet purchased, buyers can increase their potential to make a profit. Buyers should use tips like these to choose the best pallets for their money. 

Think About the Type of Pallet

The type of pallet may make a difference. It's a good idea for buyers to make sure they're familiar with selling the kind of items in the pallet and that they'll be able to determine an appropriate sales price when reselling. Buyers may also want to consider shipping costs for that type of item and whether it's seasonal or popular in the local area. 

Learn About the Risks When Buying

There are risks associated with buying pallets that the buyer should be aware of before making any purchase. Some items may not be deliverable, sellable, or unable to bring in profits. Carefully inspecting the list of what can be in the pallet and choosing the right type can help minimize the risks. 

Start Slow and Stay Organized

Buyers new to liquidations and return pallets will want to start with just buying one or two pallets instead of spending a ton of money from the beginning. Starting small gives buyers the chance to learn more about how everything works and how to sell the products from the pallets. Plus, it offers them the opportunity to keep everything organized, so they don't get overwhelmed at everything there is to do. 

Choose the Right Place to Sell

Picking out the right place to sell the items is another crucial consideration for buyers. The right place to sell can make a difference in whether the items sell and, if so, how much profit the buyer receives. Local sales can lead to higher earnings because shipping isn't a concern, but some types of products may sell faster and easier online. 

Return pallets and liquidation sales are an excellent opportunity for anyone who wants to make a little extra money and have access to items at below market value. However, this isn't something for everyone, and it can be risky to purchase pallets without knowing what's in them. Buyers will want to make sure they read more about the details of buying pallets before making their first purchase so they understand everything they need to know to get started.

Making money from returns and liquidations is possible, but it does take work. Buyers ready to put in the work can learn more today, then buy their first pallet. Once they receive the pallet and have the opportunity to see first-hand how it all works, they can start building their resale business and bringing in more profits. 

If you want to learn more about our wholesale pallets, contact Pennies for Gold today!