Inside The World of Liquidated Amazon Merchandise

A woman looking for clothes in a boutique.

Every day, there are a large number of products that are returned to Amazon. These products carry the label of being defective. However, usually, most of these products are in perfect working condition. Eventually, these products see their way into the liquidation pallets of Amazon.

Several stores have been making use of Amazon liquidated deals to stock their inventory. However, the question will arise that how will defective products be sold in the market? Here we answer everything that relates to liquidation stores and the word of liquidation pallets.

What do Liquidation Pallets Consist of?

Liquidation pallets are usually made of products that customers return on Amazon. Since Amazon is the biggest eCommerce site, the amount of these products is really large. Hence, Amazon does not bother to go through every product that it gets back. Usually, these products make up the inventory that finally creates liquidation pallets.

Notably, a large number of these products are in perfect working condition. Usually, customers simply label them defective to facilitate fast return. When in fact, there is hardly anything wrong with these goods. That’s liquidation. Pallets are usually in the best possible condition.

But is it okay to re-sell ‘defective’ goods?

Now, the question might arise if it is OK to resell goods that have already been called defective. Usually, the customers do not pose a problem. They are very happy to get a product that costs much lower than its prevailing market price. In any case, they examine the product and find it perfect in terms of quality. 

 However, some resellers do not perform a proper inspection of these goods. In case the customer gets a product that looks used and worn out, the parent company will be affected. Hence, high-quality brands are not in favor of resellers that make use of liquidation pallets to sell goods online.

But, as long as you perform proper inspection, you can always make sure that the goods you are selling are in great condition. At the same time, you need to be careful of the original brands. If you sell pallets that are in poor condition, then the brand can file an IP infringement claim on you.

However, these claims are very weak. In most cases, resellers are easily able to fight back the claim and continue to resell their products.

How to Buy Liquidation Pallets from Amazon?

If you wish to purchase liquidation pallets from Amazon, then you will have to register on the site as a third-party seller. There are four types of seller options. These include a return to the seller, disposal, fulfillment by Amazon grade and resell, and liquidation.

Amazon itself markets with marketplaces that deal in liquidated products. Sellers can recover almost 5% of their sale price, even if the product becomes liquidated.

The best way for you is to buy pallets from best liquidation companies. Naturally, the most reputable seller will give you the best possible merchandise. Hence, you will not have to go through the troubles of examining every product. This way, you save time, and money, as well as unnecessary online procedures. 

What are the types of Amazon Liquidation Products?

People usually buy different forms of liquidation pallets to grab amazing deals. These are usually sold as small, medium, or bulk pallets. These are the common industry terms and not the official name as given by the reseller. 

Bulk or Big Products

Bulk pallets usually consist of very large items. These can include electronics like televisions, air conditioners, geysers, etc. Any form of a large product like furniture, display cases, etc. It will fall into this category. If you are running a large retail store, then these are the pallets you will aim for. It will be best to find a local reseller, or you’ll have to manage delivery expenses.

Medium and Small

There is no fixed dimension for products that fall under medium or small. Usually, small products will consist of different items put together in a package. However, in this case, the average piece count increases quite a lot.

Most of the time, you will not know what a pallet contains. It is basically like ordering a surprise box and you can get from nothing to everything inside it. These are usually bought by experienced retailers from highly trustworthy sources.

High Retail

These are the most popular form of pallets that are bought by people. These are bought in low quantities. Usually, they contain palettes that have high brand and designer products. These could include sunglasses, watches, art pieces, etc.

However, there is a complete guarantee that whatever you buy will have extremely high market value. Hence, You can add your market price and tag to the product.


The whole system of running a liquidation store can get very complex. It is a tad bit difficult to summarize it within a small blog.

However, if you go through the article above, you will get a great idea of what to research further. If you are a simple buyer, a retailer, or a reseller, this article will be of great help.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.