Amazon pallet liquidation how to#
Amazon pallet liquidation free#

It isn’t like a savings account at your bank. In his business, it’s typical to throw away a third to half of everything.Īfter other rules about electronics (“boom or bust”), shipping (“Understand freight cost”), and sales strategy (“Speed through your inventory don’t squeeze it for every dollar”), he gave his final lesson: “Don’t invest money that you absolutely need. The first? “Don’t expect it all to be good.” “ Don’t get discouraged if you’re halfway through your pallet and it’s all trash,” he said. He proffered five rules for Amazon pallets.

The exchange value of most of these items is incredibly low outside the retail context in which they were purchased.Ī level-headed Flint, Michigan, liquidation reseller named Walter Blake Knoblock offered a more realistic assessment in a live video he posted last year. There’s a difference between something having a suggested retail price of $40 and actually getting someone to pay you $40 for it. Of course, two Yahoo reporters did it for themselves and got soaked. The implication in most of the videos is that the value of what’s in the box far exceeds the cost. And these videos appear to have driven a noticeable spike of interest in liquidation on YouTube. There’s an undeniable appeal to watching someone go through a whole bunch of strange stuff on camera. Another YouTuber, Randomfrankp, got 1.8 million. YouTuber Kristofer Yee racked up 2.7 million views with a similar video. YouTuber Safiya Nygaard got 12.6 million views for her unboxing of a liquidation pallet.

Amazon pallet liquidation how to#

Read: How to lose tens of thousands of dollars on Amazon It’s become a micro-genre on the video service, where different personalities unbox dozens of things and oooh and ahhh at how much money they are worth relative to what they paid for the box of stuff. This idea has won serious viewership for some YouTubers. This is a variation on that hustle: Buy liquidation, sell high. My colleague Alana Semuels demonstrated in her story on the proselytizers selling get-rich-quick classes about retailing products on Amazon that the lure of the high-margin, online business is nearly irresistible. Who couldn’t sell $4,000 worth of stuff for more than $200? It seems so easy: Sort the still-good stuff from the broken objects, the trash, the worthless, and then post that stuff to Amazon or eBay. Of course, once people do buy all these unwanted goods, they rearrange them into more profitable configurations. Doing the rough math, we’re talking about inventory that once had a collective value reaching into the billions, before it landed in some box on a doorstep.

And, assuming the company is trying to turn a profit, it must buy the inventory for a fraction of that. In its most recent SEC filing, the company disclosed that it spent approximately $33.7 million on Amazon liquidation inventory, which it then turns around and sells for maybe 5 percent of the supposed retail value. In the past fiscal year, it sold $626.4 million worth of stuff.Īmazon represents a growing chunk of Liquidity’s business. Liquidity Services now has 3,357,000 registered buyers on its various liquidation websites. The company calls dealing with returns “ the reverse supply chain”-a part of the retail business that has been growing in importance as online shopping becomes more popular. So, Liquidity Services, the operator of, became a major (though not exclusive) handler of Amazon’s American liquidations. If Amazon and other retailers let another company pay them something, they avoid those costs and add some revenue. So is the labor necessary to repackage something for resale. If it sounds crazy to sell products at massive discounts, consider that goods sitting in a warehouse are a cost. While Amazon doesn’t publicly talk about how it chooses which returned products go back up for sale and which go to the liquidators, it does sell some products through Amazon Warehouse at a discount. If you add them up, the “value” of the box might be $4,000, while the auction price might only come to $200. On, each pallet’s manifest comes with suggested prices for each product in a pristine state. Most likely, never will this precise box of shit ever exist again in the world.

Amazon pallet liquidation free#

On Amazon’s website, sophisticated sorting algorithms relentlessly rank and organize these products before they go out into the world, but once the goods return to the warehouse, they shake free of the database and become random objects thrown together into a box by fate.

A dog in a caterpillar hoodie (Amazon / Rubie’s)Įvery box is a core sample drilled through the digital crust of platform capitalism.