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Retail Store Returns A Goldmine for the Savvy Reseller!

It’s no secret that our economy is struggling. What this really means is that people are struggling! Now more than ever, people are searching for a bargain for those every day items they need.

For entrepreneurs that are also searching for low-cost products to sell, retail store returns comprise one of the most plentiful categories of goods available. Resellers would be wise to find a way to bring the struggling consumer and this abundant line of merchandise together! Doing so not only fills a need, but can also produce huge profits for your company.

Why do retailers liquidate their returns instead of selling this merchandise themselves? Retailers do not like to put returned merchandise back on their shelves for one simple and obvious reason; the merchandise is not new! Placing distressed inventory on their shelves would diminish the value of their business model. It’s all about Psychology. When people walk into an off-price store, they expect to see torn packaging and slightly damaged goods. This is not what they expect to see in a retail environment. The expectation level is quite different, and as a result, seeing distressed goods being sold in a retail store would turn off a typical consumer.

So what does the retailer do with their distressed inventory? It wouldn’t be intelligent to simply discard it! Somehow they need to recovery as much of their cost of goods as they can. That’s where Liquidation companies such as come in.

The retailer’s ability to quickly convert their distressed inventory into cash is extremely important to them. For every day the product sits in a warehouse, retailers incur storage costs, and taxes. At the same time the merchandise continues to depreciate in value. This is why they are anxious to move their distressed inventory quickly and are particularly receptive to Liquidators who can purchase in large volume.

What makes returns merchandise a good moneymaker? Returned merchandise can offer a great source of profit for at least a couple of reasons. First of all, it’s cheaper than merchandise that can be purchased from a Wholesale company. It’s even cheaper than overstock inventory. The other reason is there are lots of opportunities out there to purchase customer returns!

Yes, consumers will pay more for new merchandise such as closeouts, shelf pulls and surplus inventory. But these products also cost the reseller more. Resellers can typically expect to pay anywhere from 15% to as much as 40% more for new merchandise – when they can find it.

The best news of all is that the right load of customer returns merchandise can actually produce a higher profit margin for your company! Again, customer returns merchandise offers a steady source of product. When it comes to overstocks, shelf pulls and surplus, someone either bought merchandise that ultimately wasn’t moving, or bought too much of a particular line of merchandise. When the buyers are apprised of these inventory issues, these mistakes are quickly corrected, resulting in less new product available in the secondary marketplace. There will always be a regular flow of returns available for those in the off price industry. That’s why it’s a smart idea to build a business model around Retail Customer Returns Merchandise!

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