aNewDomain — Liquidation websites are a popular way for people to make side income. And the process is easy. Just purchase a palette of customer returns from any of a wide variety of retailers, resell the items, and profit.
With millions of items being returned every year, the odds are good that you will receive some great things in your package.
But while getting into the reselling business is a great way to begin generating an extra income, it’s still important to follow a few general principles to ensure that you are capable of sustaining your new side business. The following four tips will help you make the most out of buying Amazon returns.
Manage your expectations
With various YouTube videos showcasing users making major profits off of purchasing returned goods, it can be tempting to expect that you will have similar successes right out of the gate. You should know that condition has a major impact on the value of what gets returned. Let’s imagine that your palette contains a women’s blouse. This item could have been returned for a variety of reasons; if it was returned because Amazon shipped the wrong color or size, the item is likely in good condition.
That said, if it was returned because it had a tear in it, it will likely command a lower price. Not every item in your palette will be a winner. Knowing this going into your purchase will help you mitigate risk by expecting a few duds.
Don’t forget to factor in “hidden” costs
If you are new to learning how to buy Amazon returns, it’s important not to make beginner mistakes. One of the most common ways a buyer can hurt their profit margins is by forgetting to calculate shipping costs when determining their bids.
Shipping is a somewhat unpredictable factor that can really eat into your costs if you don’t anticipate it. Make sure that you’re looking at a listing’s pictures and item descriptions to try to determine how heavy the shipment might be.
It’s not unheard of to have palettes shipped to you with freight costs in the hundreds. Don’t forget to budget for shipping costs, or, if possible, see about picking up the items in person from a warehouse nearby.
Electronic goods can be a real gamble
One of the most popular categories of Amazon returns that buyers target is electronics, and for good reason. Even if a phone, laptop, or video game console is damaged in transit, its high price may still make it worthwhile to others.
Through refurbishing, repairing, or even selling items for parts, it is possible to make money off of electronics.
That said, these are some of the most bid-on categories of Amazon returns, and, as such, profit margins are sometimes razor thin. Expect either a boom or a bust from electronics returns, and proceed appropriately.
Only invest what you can afford to
This should go without saying, but still needs to be stated. It’s important as you approach something new like purchasing returned items that as an investment vehicle you should only allocate money you can afford to.
If you’re struggling to meet your rent payments every month or behind on bills, it’s best not to view the potential profits from Amazon returns as the silver bullet to solve all of your problems.
It can be thrilling to receive a random lot of valuable items in the mail, but the fun that comes from this business shouldn’t cloud your financial realities. Be wise about your purchases, and you’re sure to succeed.
Finding out how to buy Amazon returns can be worthwhile inspiration for many people looking for side income, and for good reason. Amazon is one of the largest retailers in the country, and has a large volume of returns.
This makes them a prime target for resellers looking for a good deal on items with value. With the right mindset, it’s possible to turn a profit buying Amazon returns, so consider it the next time you’re looking to generate extra income.
For aNewDomain, I’m T.E. Wing.