Amazon returns are a growing challenge for FBA sellers. The return rate on Amazon averages between 5 and 15 percent depending on the category, and for some products it can be much higher. When returns pile up, storage fees eat into your margins, and you need a plan for getting rid of that stock efficiently.
What Happens to Amazon Returns?
When a customer returns a product to Amazon, it goes through a grading process. Items in perfect condition may be relisted as new. However, many returns are classified as "unfulfillable" even if there is nothing wrong with the product — a damaged box or missing shrink wrap is enough. These items cannot be sold as new on Amazon, and they start racking up long-term storage fees if you leave them in the fulfilment centre.
As an FBA seller, you have a few choices: request the stock be returned to you, have Amazon dispose of it, or use Amazon's liquidation programme. Each has trade-offs, and there are other options beyond Amazon's own system that are worth considering.
Your Options for Selling Amazon Returns
1. Amazon Liquidation Auctions
Amazon offers its own liquidation programme where your unfulfillable inventory is sold in bulk to approved liquidators. The process is simple — you submit a liquidation order through Seller Central and Amazon handles the rest. However, the payout is typically very low, often around 5 to 10 percent of the selling price. You also have no control over who buys it or what they do with it. This is best used as a last resort for low-value items where the alternative is paying Amazon to destroy them.
2. Wholesale Liquidators
There are companies that specialise in buying Amazon return pallets in bulk. They typically purchase manifested pallets (where the contents are listed) and unmanifested pallets (lucky dip style). As a seller, you can have your returns sent back to you and then sell them as pallets to these liquidators. The per-unit price is low, but you move everything at once. The key downside is that many liquidators are selective — they want electronics and branded goods, not generic accessories.
3. Direct Buyers
Direct clearance buyers purchase your return stock outright. Unlike liquidators who may cherry-pick, a good direct buyer will take the lot — the good, the average, and the slower-moving items. You send them details of what you have, they make an offer, and they arrange collection from your home, warehouse, or storage unit.
Pay For Clearance is one example of a direct buyer that regularly purchases Amazon return pallets. You can send stock details via WhatsApp with a few photos, get an offer within 24 hours, and have the stock collected within days. This works well for sellers who want to clear returns quickly without spending time sorting, listing, or negotiating with multiple parties.
4. Reselling on eBay or Other Platforms
If you have the time and space, you can test and relist returns on eBay, Facebook Marketplace, or your own website. This typically yields the highest per-item price because you are selling to end consumers. However, it is labour-intensive. Each item needs testing, photographing, listing, and shipping. Returns and customer service add to the workload. This approach makes economic sense for higher-value items (electronics, branded goods) but is rarely worth it for items under ten or fifteen pounds.
5. Local Market Traders and Car Booters
Market traders and car boot sellers are always looking for cheap stock. You can sell return pallets or sorted lots to local traders, often through Facebook groups or word of mouth. The advantage is that deals happen quickly and in cash. The disadvantage is that traders are experienced negotiators who know the value of clearance stock, so do not expect generous offers.
Tips for Getting the Best Price
- Sort before selling. A manifested pallet with a clear list of contents and conditions sells for significantly more than an unsorted pile. Even basic sorting — working, damaged, and sealed — helps.
- Know your numbers. Calculate what you paid for the stock originally and what your break-even point is. This helps you evaluate offers rationally rather than emotionally.
- Factor in your time and storage costs. A quick sale at a lower price can be better than months of slow individual sales, especially when storage fees are involved.
- Build a relationship with a buyer. If you regularly generate returns, having a trusted buyer who takes your stock on an ongoing basis saves you time and often gets you better rates over time.
- Do not wait too long. Electronics and tech accessories lose value quickly. Last year's phone cases are worth a fraction of what they were twelve months ago. Move stock while it still has value.
The Bottom Line
There is no single best way to sell Amazon returns — it depends on the volume, the type of products, and how quickly you need the stock gone. For most FBA sellers, a combination works best: relist the high-value items individually and sell the rest in bulk to a direct buyer. The key is not to let returns sit in storage accumulating fees. The sooner you act, the more you recover.