Are you looking to buy and resell Amazon customer return pallets? Is it a good idea to invest in Amazon customer return pallets? Why electronics in particular? what is the resale market like for returned electronics? Let’s explore.
Buying wholesale merchandise to sell on global platforms like eBay or Amazon has become an increasingly popular business opportunity and a good source of additional income for many.
But the market has become more and more competitive, and in order to succeed, you need not only understand what sells and what doesn’t, but also find an affordable and reliable source of quality merchandise. This is where PROSPERION can help you, by providing you with Amazon customer returned merchandise to keep your customers happy and increase your profit potential.
Understanding The Resale Market
By doing some research you will be able to figure out the market trends, pinpoint under-supplied markets and decide what sort of products you could sell on these websites.
Market research will tell you that books and electronics are among the most popular products selling online. In fact, 44 percent of U.S. Amazon shoppers buy electronic products from the world’s largest online retailer.
In fact, the entire national market for electronics is currently very strong. Revenue in the consumer electronics segment is projected to reach $384 billion in 2020 with a 17.6 percent jump year-on-year. So this is a market that is showing an increase. The value of the electronics market globally is projected to reach a value of $1.47 trillion.
However, high demand brings intense competition. So if you want to compete and make your mark in the electronics market, you need to find ways to stand out from the competition and guarantee a solid profit base.
For most resellers, the first option is to reduce their retail prices. As a consequence, profits get squeezed and you may reach a point where it is no longer worth it for you to stay in business.
So what can you do to improve your chances? It’s true that reducing prices will help you attract more customers, but you need to find a way of doing this without compromising your profits. In order to do this, you need to reduce your costs, in particular, the purchasing costs for your stock. This means buying a different type of stock at a lower price.
Where can you Buy Amazon Returns Pallets of Electronics Cheaply?
The most common way of buying wholesale electronics is to go through traditional new-product wholesale suppliers, who get their stock directly from manufacturers. But, unless you are a long-term customer and can negotiate a favorable and flexible deal with the wholesaler that will offer you better financial terms and supply you only the wholesale products you want, you will be buying the items at costs just below their MSRP. This doesn’t leave a lot of room for profit. And that is if you manage to get your products noticed in a sea of other electronic gadgets.
The easiest way, apart from a marketing campaign to get your merchandise noticed on any of the websites is the most obvious one: the price. The goal is to source your Amazon electronics as cheaply as possible, giving yourself enough room to make money while staying very competitive and investing in marketing.
If the traditional wholesale suppliers don’t offer you the terms that would allow you to stay competitive in the market, it is time to look elsewhere. One such source would be the liquidation companies that are gaining in popularity.
Amazon sellers who are receiving a lot of returned items (up to 30% of all items sold online are returned) often use liquidators to deal with the resulting logistical problems – to get some money back, and to clear warehouse space
Before you start saying refurbished, tested-not-working, and used products are not worth your money, you have to consider that knowing how to buy can give you the advantage you need over your competition, and result in a profit.
Both retailers and manufacturers prefer to liquidate electronics and other merchandise through liquidation companies rather than smaller resellers, due to the large volume of stock being dealt with. Prosperion can process large volumes on a regular basis from Amazon and other sources, to then sell through liquidation auctions to resellers like you at the lowest possible prices.
This means that you will buy the same kind of products retailers sell in their shops and online platforms, but at a fraction of their retail price. In addition, with PROSPERION working directly with Amazon and other retailers and manufacturers, you know exactly where the product is coming from.
Reselling Amazon Customer Return Pallets of Electronics
There are several options available to you, if you want to make the most profit out of each pallet you bought.
List individually or Bundle?
The first step is to sort each pallet and check the contents. This entails separating what is ready to be sold immediately and what will need some work. Because selling some products in bundles may attract more customers, it is a good idea to also check what products you can bundle together.
Can you Repair or Refurbish?
Faulty items are often returned to retailers (especially electronics), and you may find some of them in the pallets you bought. But repairing and refurbishing this kind of merchandise can give you an advantage. In many cases, the faults are easy to repair, and if you can do it and bring them back to working order, you will add considerable value to your merchandise. If you have the ability to do so, you can do it yourself. Otherwise, you can use a third-party to do it for you.
If you find several faulty products of the same model in your pallets, you can use components from one product to repair another. Even products that cannot be repaired can be useful as sources of spare parts for others that can.
Always Try to Re-Accessorize
Customers return some products with missing accessories like headphones or chargers. In many cases, it is not difficult or expensive to replace these accessories, and doing this will add value to the item when you resell them.
Repackage
Good quality packaging also adds value to a product. If the packaging is damaged, it is a good idea to try to replace it with the original packaging. Otherwise, repackage the item entirely, with good quality packaging.
Inspect and Grade
Your products should be inspected thoroughly before you resell them. When its time to resell your products, you need to be truthful and accurate about their condition, advertising them at the correct grade. Most products will fit into these categories:
- New factory-sealed – These are brand/new products, in their original boxes and sealed in their factory plastic wrapping. They have never been opened and are in pristine condition.
- New open-box – This is new merchandise that is in perfect condition. However, the packaging has been opened.
- Refurbished – These are items that have been inspected and repaired, accessorized and repackaged, if necessary.
- Used – Used items work, but display visible signs of wear and tear, which may include scratches and dents.
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