Hey everyone, The Side Hustle University is back with another review for you. This time I will be talking about Amazon and specifically selling unclaimed and returned Amazon purchases. Online shopping has revolutionized the way we buy products these days especially during and after the pandemic. It is easier now than ever before to purchase goods with just a few clicks of a button. But what happens to all the returned and unclaimed products that are sent back to online retailers like Amazon? Well, there’s a thriving market for reselling these items, and it can be a great opportunity for aspiring entrepreneurs looking to make some extra cash.
I will warn you though, this is a very lucrative side hustle but it does require a bit of work to be successful with it. With that said, it may not be a side hustle for everyone, but it is another great example of a quickly growing method to make some money outside of your regular job.
Like many of you out there, I used to worry about finances quite a bit. Not knowing if I was going to have enough money at the end of the month to afford rent, or only having enough money to feed my kids pasta and butter for dinner every day was just one of the worst feelings I have ever had. I couldn’t take it anymore and I decided to figure out ways to make more money.
Luckily, I was able to start my blog site, The Side Hustle University, to help people who are going through similar situations to me and who are looking for ways to make money whether online or on the side.
One sustainable side hustle is something I came across by complete fluke. I had purchased a watch that was being sold on an app similar to Facebook Marketplace. When I asked the individual why they were selling the watch, they told me it was one of the products they found in their skid of Amazon returns. Curiously, I asked what that even meant and they explained it to me. I took the watch I had just bought, and hurried home to find out more about this Amazon returns thing.
To my surprise, there were actually quite a few people that were doing this, and making some really good money from it. Some were even pulling in enough money from this that they were able to leave their jobs and do this full time.
I currently live in Toronto, Canada, so I will use places and people from here as examples to make my point. But this side hustle is being done all over the world. I have come to learn that some people have even opened up small stores to sell these products. I have even met some of these people myself, and I am really happy for them. I wish them, the same way I wish you, nothing but success.
If you are looking for a different way to make some money, you might want to consider selling returned and unclaimed Amazon pallets. These are boxes of merchandise that Amazon customers either returned or failed to claim, and that Amazon sells in bulk to liquidators, resellers, or anyone who is interested.
But how do you find these pallets, how do you buy them, and how do you sell them for a profit?
What are Amazon Return and Unclaimed Pallets?
An Amazon return or unclaimed pallet is simply a large number of products that were sold on Amazon that were returned or went unclaimed for some reason. These items can range from electronics, clothing, toys, books, home goods, and more. Most of these items are brand new, some are used or refurbished, and some are damaged or defective.
Amazon pallets can be classified into two categories: return pallets and unclaimed pallets. Return pallets are those that contain items that customers returned to Amazon for various reasons, such as changing their minds, receiving the wrong item, finding a defect, or not liking the product althogether. Unclaimed pallets are those that contain items that customers never received or claimed, such as due to a wrong address, a missed delivery, a lost package, or a refusal to pay customs fees. Most items are brand new and never even had the box or packaging it came in opened.
Why does Amazon sell these pallets?
In case you haven’t been living on Earth for the last few years, Amazon is the world’s largest online retailer. So you can imagine how many of the shipped products that they sell end up being lost, damaged, unclaimed, or returned by customers. Well, what does Amazon do with all those products? Amazon sells these pallets and products. The reason behind this is rooted in economics, since selling these pallets proves to be more cost-effective and efficient for the company than processing and restocking each individual item. Amazon has millions of customers and thousands of products, so handling returns and unclaimed packages can be a huge hassle and expense for them. Since Amazon caters to millions of customers worldwide and offers a vast array of products, managing returns and unclaimed packages can be a daunting task. This process can prove to be time-consuming and expensive for the company. Therefore, by selling these pallets of goods in bulk to third-party sellers, Amazon can then recuperate some of the costs incurred in managing returns and create additional warehouse space to accommodate more products.
How can you buy these pallets?
To get the best deal possible, these pallets have to be searched for but it is not that difficult. Living in Toronto, Canada, there is an app I use called Kijiji. It is a marketplace where anyone can sell things for free. You can find a lot of good deals there. You can also use Facebook Marketplace. I found that Facebook Marketplace had a lot of people selling Amazon pallets for sale, with a huge range of prices as well as products. I even was able to find on Facebook Marketplace places that grouped similar products together, meaning you can buy a pallet with only electronics on it, or only clothing, or only books, and so forth. This comes in handy if you already have a target audience and customer base.
When it comes to selling returned Amazon products and unclaimed pallets, there are a few things to keep in mind. Do your research and make sure you’re buying from a reputable seller. Be prepared to sort through a lot of products to find the gems. Finally, be aware that not everything will be in good condition, so it’s important to have a plan for dealing with damaged or unsellable items. I will get to this a bit later.
You can also buy these pallets from liquidation websites, auction sites, or local warehouses. Each source has its own advantages and disadvantages, so you need to do your research and compare the prices, quality, quantity, variety, and shipping options of each one.
Liquidation websites are useful to find Amazon pallets because they specialize in selling surplus inventory from retailers like Amazon. They usually offer a wide range of products and categories, and you can browse through their listings and bid on the pallets that interest you. Auction sites will have more competitive pricing, but it is an auction so you have to place bids and hope to win.
There are local warehouses that I was able to find close to where I live, where you can go and physically see what you are buying. This can give you a better idea of the condition and value of the items inside the pallets. However, local warehouses may have a limited selection of products and categories, and they may charge higher prices than online sources. You can find local warehouses by searching online or asking around your area.
Lastly, Amazon itself also sells some of its pallets directly to the public through its own liquidation program called Amazon Warehouse Deals. You can find these deals on Amazon’s website under the “Deals” section. However, these deals are usually limited in quantity and availability, and they may not offer the best prices compared to other sources. It is Amazon after all.
The most important thing to do when buying a pallet is to look at the products available and make sure to pick a pallet that has items on it that can be sold quickly and for a good price to allow you to make your money back. I will discuss ways to sell items in the next section of this blog but this is just something to keep in mind. I have met some people who did their due diligence and found pallets with laptops on them where they paid $750 for the pallet it came on and sold the laptop for over $1000. They still had the rest of the items to sell, so you can see and hopefully start to understand the potential there is with this side hustle.
How can you sell these pallets?
Once you have bought your pallet, you must figure out how to sell them for a profit. Your creativity will be key here but what I found to work the best was to use platforms like Kijiji, eBay, Amazon Marketplace, Facebook Marketplace, Craigslist, or your own website, if you have one. Again, I live in Toronto and I found that Kijiji and Facebook Marketplace worked best, but you can use whatever site you like.
Another piece of advice I can give you is to price your products low enough to attract buyers, but still high enough to make a good profit. Everyone that I know that is buying and selling from Amazon pallets makes their investment back with the sale of 3 to 5 items MAX.
You can also sell the items locally at flea markets or hold a garage sale yourself. This way you can avoid shipping costs and reach customers who prefer to physically see and touch the products before buying them. Tthis also requires more space and transportation to store and move the items, but the payoff is huge. I have met many people that actually sell the items at flea markets and I have met 2 individuals that have opened up stores in Toronto that sell the items from these pallets. All of these people are working for themselves, happy as can be, selling products that they bought for a steal.
There is a huge potential to earn some serious cash here with this side hustle. As I mentioned before, there are people that do this full time and make more money doing this than they were making working their regular jobs.
You also don’t need to be a professional salesman or saleswoman to sell the items on the pallet. I am personally not the salesman type, but the rule I stood by while doing this was to keep a pallet for a month. After that, whatever items were remaining and unsold, I would take to a pawn shop and take whatever they would give me in cash for it. I have always made a profit. We’re talking at least 3 times what I would initially invest.
On the flip side, if you are impatient and just want a quick, one time deal to get your money and move on to the next side hustle, you can sell the whole pallet as it is to another reseller or liquidator who is willing to pay more than what you paid for it. This is the easiest and fastest way to make money from these pallets, but it also yields the lowest profit margin.
Conclusions – the TL;DR Version
Selling returned and unclaimed Amazon pallets is a lucrative side hustle that is gaining popularity among hustlers like you. It is a great opportunity to make some extra cash outside of your regular job, and it is also a sustainable source of income for those who are looking for ways to supplement their income. It is important to note that this side hustle does require a bit of work to be successful. It is not for everyone, but it is a great option for those who are willing to put in the time and effort.
Overall, selling returned, and unclaimed Amazon products and pallets can be a lucrative and exciting venture for those willing to put in the time and effort. Whether you’re looking to start a full time business or just make some extra cash on the side, buying and reselling Amazon pallets is a great way to turn someone else’s returns into your own profits.
By following the tips in this blog post, you can purchase, sell, price, and market these products effectively. Remember to evaluate the condition of the products, research the market, and provide excellent customer service to succeed in this business.
I hope this blog post has given you some useful insights on another side hustle idea that may work for you.
Finally, if you haven’t already done so, please check out my website, The Side Hustle University, which I created for people like you and me who are looking to start a side hustle to make some extra money or even to start a business. You’ll find similar articles and blog posts to this one, as well as reviews and ideas that could help you to become free from the rat race we all know and hate.
To your success,
Disclaimer: The views and opinions expressed in this blog post are solely those of the author and do not necessarily reflect the official policy or position of any company, organization, or employer. The author has not received any compensation for writing this post, however, there may be some affiliate links throughout the piece. Individual results may vary based on effort and other factors. Any action you take based on the information presented in this post is strictly at your own risk. The author assumes no liability or responsibility for any errors or omissions in the content of this post.
Wonderfully!
Thank you!!!