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How To Make Money With Amazon Return Auctions

As the leading marketplace globally, Amazon has a lot of customer returns. These items are sold at auction sites and can be purchased for a fraction of what they would sell for on Amazon. Before you dive into this business, there are things you need to know about buying from liquidation auctions.

Amazon return auctions can be a great way to make money, but if you're not sure how they work or how you can get started, keep reading. In this guide, I've put together everything you need to know about buying Amazon returns so that anyone can make money with it. Let’s get started.

How Does Amazon Return Auctions Work?

A return auction is where Amazon sells returned merchandise from its marketplace, usually sold by truckload or pallet. 

Truckloads can be manifested or unmanifested:

  • Manifested means that the items are listed in a specific order, usually grouped by product type or brand. Manifested truckloads are more expensive because the items are cataloged.
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Pictured above: Manifested truckload

  • Unmanifested means that the items are not listed, but the category and retailer source are known. 

    The truckload to choose depends on the risk you are willing to take.

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Pictured above: Manifested truckload

Amazon return pallets and truckloads are listed on various marketplaces (more on this later). Most sites list the liquidated item via auctions where you can place a bid and, if successful, buy the items at a fraction of their original price.

Why Buy From An Amazon Return Auction?

There are a few reasons why you would want to buy from Amazon returns:

  • The merchandise is sold at a low price
  • Some items are brand new and have never been used
  • You can buy bulk quantities, which saves you money on shipping
  • There is a wide variety of merchandise to choose from

Amazon returns can be a great way to save money on merchandise, but as with any business, there are risks involved. Let's discuss these risks.

What Are The Risks?

The risks involved with buying Amazon return pallets are similar to any overstock purchase:

  • Most items are sold as-is, so there's no guarantee that the item will work when you receive it
  • Some of the merchandise has been returned because it is faulty
  • You could end up with a lot of unusable inventory if you don't know what you're doing

The best way to mitigate these risks is to do your research. Know what you're buying and understand the terms of the sale before you place a bid. Check the MSRP (manufacturer's suggested retail price) of the items you're interested in to get an idea of how much you should be paying. Also, make sure to factor in the shipping cost before you bid.

Where To View And Bid On Amazon Return Product Auctions

There are several marketplaces where you can find Amazon return liquidators auctions. The most popular liquidation companies with live auctions are:

B-Stock

B-Stock is the official Amazon liquidation marketplace. B-Stock has different listings for the USA and European Union. The listings show the number of units, condition, total retail value, location, current bid, number of bids, the average cost per unit, and when the bid ends.

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Pictured above: B-Stock Amazon EU

Liquidation.com

Liquidation.com is an auction site specializing in selling liquidated, returned, and overstock merchandise from major retailers such as Amazon, Walmart, Lowes, and Target. You can view Amazon pallets only by selecting Amazon under "Brands/Retailer." You can refine your search by category, condition, and retail price.

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Pictured above: Listing on Liquidation.com

As seen on the above image, the listings include the MSRP, manifest (if truckload is manifested), time left, current bid, location, condition, shipping terms, weight, and quantity in the lot.

Direct liquidation

Direct liquidation lists merchandise from Amazon and other big retailers in the USA and Canada. You can filter listings on Direct Liquidation by category, manufacturer, condition, lot size, vendor, and retail price.

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Pictured above: Listing on Direct Liquidation

The above image shows a listing indicating the current bid, total bids, MSRP, lot location, and seller. You can also download the manifest, which contains a list of the items, location details, and models.

BlueLots

BlueLots marketplace has product listings with fixed prices and auctions. You can choose to view live auctions only where the condition of items can be shelf pulls (items that were displayed for sale but were never purchased), brand new, or used. The listings show the number of units, MSRP, current bid, condition, and time left.

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Pictured above: Listing on BlueLots

Before registering with these liquidation companies, have a reseller certificate in hand for verification. A reseller certificate is a document that proves that you’re a legitimate purchaser buying products for reselling. Otherwise, you will not be able to bid on these items.

How To Earn Money With Amazon Return Auctions

Making money selling liquidated merchandise from Amazon return pallets is possible and has been done by many. Before listing any tips, let's first take a look at what you'll need:

  • Storage space
  • Shipping materials
  • Shipping labels

The most important thing you'll need is a place to store the merchandise. The items will need to be sorted and organized so you can quickly find what you're looking for and ship them out.

The next thing you'll need is shipping materials. This includes boxes, packing material, tape, and labels. It's best to create a system to pack and ship the items quickly.

Lastly, you'll need shipping labels. You can buy shipping labels online or at a store. Make sure you have the correct dimensions for the boxes you're using.

Here are some tips to help you get started:

Bundle Products

Bundling is a great way to earn more from Amazon customer returns. When you bundle products, you're selling them as a unit. Sorting and bundling products increase the value of the items and help you make more money. You also sell more products with a single sale.

Accessorize Products

Accessorizing is a great way to make products more appealing to buyers and increase profits. For example, if you're selling a dress, add a purse and necklace to go with it. You can also add a hat, scarf, and belt to create a complete outfit. Accessorizing will help you sell more products and make more money.

Repair And Refurbish Products

Most products, especially electronics, are returned because they have a defect. Some products are easy to fix and refurbish. If you're able to do this, you can increase the product's value and make more money.

For example, if you bought a pallet from Amazon tech return auctions with items of the same model, you can take some parts from one model and use them to fix another model. This increases the selling value while keeping your expenses low.

Repackage

If you purchase products with damaged packaging, the best way to sell them is by repackaging. You can do this by removing the packaging, cleaning the product, and adding new packaging.

You can buy packaging boxes from marketplaces like eBay or Alibaba. You'll find a variety of boxes to choose from that will fit the size and shape of your product.

Where To Sell Products Sourced From Amazon Returns

There are several online marketplaces where you can start reselling products. The popular platforms include eBay and Etsy. Here is a good read on Etsy vs. eBay to help you learn about the pros and cons of each platform.

When selling products on these platforms, you'll need to create a listing with photos of the product, a description, and the price. You'll also need to set up payment and shipping options.

You can also sell products through your website or an online store like Shopify. This will require a longer setup but can be more profitable in the long run.

Do your research first before choosing a platform to sell products. Ensure you understand the fees associated with each platform and what payment and shipping options are available.

Amazon Return Auctions FAQ

What are Amazon Liquidation Auctions?

Amazon liquidation auctions are conducted by third-party liquidation companies such as B-Stock and Liquidation.com, which have merchandise returned from Amazon.

How much does a pallet of Amazon returns cost?

Amazon liquidation auctions have a wide range of prices for pallets. Prices vary based on the size and number of items included in each pallet as well as the condition of the merchandise.

Where Can I Find Amazon Return Auctions Near Me?

Liquidation companies mentioned above list the areas where they conduct Amazon liquidations. For example, liquidation auctions listed on B-Stock show the city and state where the pallets are.

Where Can I Find Amazon Return Auctions Near Me?

Liquidation companies mentioned above list the areas where they conduct Amazon liquidations. For example, liquidation auctions listed on B-Stock show the city and state where the pallets are.

Amazon Return Auctions: Bottom Line

Amazon return auctions can be a great way to purchase merchandise at a discount and resell it for a profit. To avoid business risks, use caution when buying from Amazon returns. Remember these tips for a profitable reselling business:

  • Bundle products
  • Repair and refurbish products
  • Accessorize products
  • Package products properly
  • Understand the fees associated with each platform before choosing one

In addition to the above tips, here is a detailed guide on how you can become a reseller.

Whether you're looking to start a business reselling on eBay, Amazon, or any other similar platform, or simply want to add to your existing eCommerce business, understanding the process is key to success. These tips above should help you get started with the process.


You can also read up on how to make money through Amazon Vine for other ways to use this platform to succeed online.

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About the author 

Mike Vestil

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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