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What Does Amazon Do With Returns?

Amazon has been criticized for destroying millions of items, and now has the stated intention to work “toward a goal of zero product disposal.” There are now programs in place to allow sellers to resell customer returned items, or to allow them to be sent to the liquidation market.

Amazon third-party sellers told CNBC they end up throwing away about a third of their returned items.

Amazon now gives sellers four options (subject to a fee) for dealing with items that they can’t sell as new: Return to Seller, Disposal, Liquidation, and Fulfillment by Amazon Grade and Resell (at the moment by invitation only).

There is also liquidation, which Amazon now offers sellers as an option instead of disposal.

Amazon partners with liquidation marketplaces, which auction off unwanted inventory to resellers by the pallet or even truckload. Sellers can recover around 5% of the sale price if the product is liquidated.

With the ‘Return to Seller’ option, the return leaves the Amazon warehouse and gets back to the seller for their processing. For non-electronic items, you will find that many items are simply relisted if they have never been opened. If the items have been opened, what happens to them will depend on the seller (whether Amazon itself, or a 3rd party seller on Amazon), and the value of the item. If the resale value is worth the cost of repairing, cleaning, testing, or repackaging, many sellers will choose to do so, as long as the margins are there to make this worth their while.

Electronics are a different case. A large number of electronic items returned to Amazon are subject to an inspection, and then repaired if necessary. After this process, they are listed on Amazon Renewed. This is the place where customers can purchase Amazon returns that are guaranteed to be working as new while spending a lot less than they would when buying a brand-new item.

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However, it is not that easy to be included in Amazon Renewed. Unlike new items, the strict rules set up by Amazon make it harder for third-party Amazon sellers to sell refurbished items through Amazon. Sellers are required to follow a list of stringent rules.

And what about the returned items that don’t get resold through Amazon? A portion of that merchandise is put in pallets and liquidated.

When sellers use ‘Fulfilled By Amazon’ (FBA), the categorization of customer returns is done by the Amazon fulfillment center. The merchandise is labeled as either sellable, damaged, customer damaged, defective, carrier damaged, or expired. If damage is incurred by the courier or Amazon staff the merchandise is transferred to Amazon ownership, and the seller is compensated. Amazon sells this type of returned merchandise by the truckload.

Why Buy Amazon Return Pallets?

Lower Cost

One of the most significant benefits of buying Amazon return pallets is the lower cost compared to buying new products.

If you’re looking to save money on inventory costs and are willing to take on the risk of potentially receiving items in less-than-perfect condition, buying Amazon return pallets can be a smart business decision.

Buying returns pallets means you can source a lot more merchandise for the same initial outlay, compared to buying all new items.

Variety of Products

Buying Amazon return pallets comes with the benefit of having a wide variety of products available. These pallets can contain a range of products, from electronics and household appliances to clothing and accessories. This variety allows buyers to select the pallets that best suit their need. In addition, the variety of products available in Amazon return pallets can also be an advantage for businesses that are looking to diversify their product offerings, since Amazon offers products in more than 25,000 sub-categories.

Sustainability

Buying Amazon return pallets is also a sustainable option. Rather than these items being thrown away, they are being given a second chance at finding a new home. This makes buying Amazon return pallets more environmentally sustainable.

Where to Look for Amazon Return Pallets?

The best way to buy Amazon return pallets is through liquidation companies. When searching for a merchandise source, you are advised to look for the most reputable seller. This is best reflected in customer experience. Therefore, you should look for the advice of other online resellers who have sourced their merchandise through those companies. The best way of getting this is by looking for online reviews, which tend to give a clear picture of a company’s services and product quality, which in turn reflects on a company’s reputation.