- Lizeth Cuara bought her first pallet of Amazon returns in 2015 for $5,000 to flip for a profit.
- Cuara worked long hours listing items on the platform and learned the business from YouTube.
- The hustle helped her launch her own retail business which brought in $5 million in sales last year.
This as-told-to essay is based on a transcribed conversation with Lizeth Cuara, CEO of Misty Phases, a luxury postpartum wear line. Business Insider has verified the financials with documentation. The following has been edited for length and clarity.
I grew up in Compton and was living paycheck to paycheck, working in property management in LA. I didn’t feel valued in my job and was looking for a way out.
My friend suggested I try flipping Amazon return pallets as a side hustle. He had seen friends do it and thought it would help me leave my job.
The pallets were filled with customer returns like shoes, electronics, and lotions. My friend said you could resell these items on platforms like eBay and make a profit. He knew the warehouses that sold pallets but didn’t know more about how it worked.
This was in February 2015, I was 30 years old and had saved $10,000 since I started working at 17. I decided use my savings and buy two pallets. The worst thing that could happen was returning to the same job and living as I had been.
Learning how to flip Amazon returns pallets
Within days of having that conversation with my friend, I went to a warehouse in LA to buy my first pallet. The seller was hesitant; he’d seen people fail in this business. I persuaded him to sell me two $5,000 pallets.
I began sorting through the pallets with no idea what I was looking for. I kept whatever looked new. My friend had said people sold the items on eBay, so I searched ‘how to list something on eBay’ on YouTube.
I downloaded the eBay app and photographed each item on my phone. I uploaded them with the name and price, using YouTube as my guide. I sold items on the first day. Then I had to learn how to ship the items and get paid via PayPal. It was a process of trial, error and YouTube.
I initially focused on getting good reviews so buyers would trust my little eBay store. I also had to be careful not to list anything that was restricted by eBay so my account didn’t get banned. There were strict and detailed rules about what you can list.
The products sold quickly at prices slightly lower than what people could find on Amazon. I didn’t have to do marketing because people were already searching for them on eBay. Once I learned how to post, ship, and price items, it became about listing as many items as possible daily. The more I listed, the more I sold.
It was time-consuming, but I started making money from the pallets right away. With PayPal and eBay, your funds are available almost immediately, so I was able to live off that income. In my first month, I brought in $10,000 in sales, and within a few months, I hit $15,000.
Flipping pallets was lucrative but unpredictable
I was earning more than my old job, but the business was unpredictable. A $5,000 pallet could yield $3,000, break even, or bring in $15,000. One month in, I knew I was going to quit my full time job. Selling pallets was more work, but I enjoyed learning the process even if the days were long. I only slept a couple of hours every night and was constantly working.
My first step in scaling the business was learning I could buy larger pallets of all one item.
Within weeks of purchasing my first pallets, I went back to buy more. My initial seller told me I could go to a second warehouse that had products from Amazon sellers that were abandoned or defective. Those pallets would have repetitive items where I’d only have to create one post on eBay, but they were pricey.
I bought mixed pallets about twice a month until I could afford the more expensive pallets of repetitive items.
After the first few months, I began spotting patterns in the inventory. Certain types of products consistently sold well that weren’t big brands. I learned they were called white-label goods. By researching on Amazon, I found that these lesser-known brands were generating impressive sales.
The pallet business was profitable, but lacked consistency. I couldn’t rely on this model long-term.
About eight months after I started selling the pallets, I started researching how to develop and manufacture my own products.
Launching my own products
I used the money I had generated from eBay as seed money to create products. Having savings gave me the freedom to experiment with samples and overcome setbacks.
My first products were lotions, teas, waist trainers, and sauna belts. Through my experience with the pallets, I knew people wanted these items. I hired a marketing agency and promoted my products using Facebook ads and influencer marketing.
To my surprise, the products did exceptionally well. They were featured by Univision and CBS in their lifestyle segments.
Manufacturers often require large orders when you’re making products. The downside is that not every product will succeed. In my experience, it’s best to launch with three or four products because only one or two will likely perform well. I always advise against putting all your money into a single product.
The upside is that when you order in bulk, your cost per item goes down, which helps with margins. Plus, owning an original product means less competition and more control over pricing.
I learned invaluable lessons about pricing, demand, and customer behavior. These lessons helped me launch my luxury postpartum wear line Misty Phases based on my own traumatic birth and recovery.
I knew how to manufacture products, run Facebook ads, and sell on Amazon and my website. I started Misty Phases at the end of 2022, and it generated over $5 million in sales in 2024.
Betting on myself was the best decision
Buying Amazon return pallets was one of the best decisions I ever made. They provided seed money, insight into e-commerce, and a crash course in entrepreneurship. Now, I’m a single mom and I own a home in California.
There are risks and challenges in flipping pallets, but it’s an incredible way to learn the ropes of selling online, test product ideas, and build capital for bigger dreams. The key is dedication and hard work.
Even now, I know that if everything came crashing down tomorrow, I’d go back to buying pallets in a heartbeat.
