Customers often purchase items, change their minds, and return them to the retailer. In many cases, these products can then be restored to as close to their perfect condition as possible and resold as either refurbished or new products, depending on their condition. In the U.S., it’s illegal to sell a used item – even one that’s not actually used – as new. Because of these risks, many retailers turn to secondary markets to liquidate these items.
Consider what could happen to these goods and what options exist for moving them.
The Vendor Has to Resell Them
There are many companies that do not want to deal with returns like this. There are good reasons for this, such as the cost of refurbishing or simply handling the item. They also have to worry about liability risks or the hassle of having to deal with customers unhappy about an open box. Often, these items come back to the vendor in less-than-ideal condition, which means they take a loss on them. Instead of putting more time and money into these items, many vendors choose to sell them to secondary markets.
What Are Secondary Markets?
These markets are a location that can sell these items, often at a deeply discounted price, to the public. These items are purchased from the vendor or a liquidation company, delivered to the secondary market, and then unpacked and sold to customers locally or online.
Secondary markets are not just large stores or liquidations. In fact, the term secondary markets refer to any type of selling that is done off the market or not in the traditional retail location. It could be sold online when a customer purchases an item and decides to sell it later. Second hand shops can also purchase these items and sell them to their customers within this secondary market.
What Else Can Be Done?
There are some situations where vendors will sell the items returned to them by customers at a deep discount, but that tends to cut into available floor space and involves labor. Other items can be sent to developing countries or donated to charity.
Let Our Team Help You
At That Liquidation Places, we specialize in truckload liquidation. That is, we take those extra, returned items and resell them at a fraction of the cost. That means new and like-new items that you can then sell to your customers. Learn more about us or contact us today to learn more about our pallet lots.