Every month, customers return thousands of products to big retailers such as Target and Walmart. So, what do these companies do with customer returns? Let’s take a look!
What Do Big Retailers Do with Their Customer Returns?
Returned items are categorized as secondhand and are also often considered surplus-to-requirements. All of the big-name retailers aim to make some sort of return on any type of returned merchandise.
They also look at selling it as quickly as possible to ensure that it doesn’t take up space in their warehouse or store space. Retailers are prepared to take quite a hit on the price they could have expected for this item if it was sold and not returned So, instead, they choose to sell their returns in bulk to liquidators and wholesalers.
Liquidators, such as Direct Liquidation, then choose to sell these returns to their business customers for considerably less than their MSRP value. This means that there are far greater profits to be made for far less than their MSRP value. What this also means is that there are even greater profits to be made when resellers sell them to the public.
Direct Liquidation often buys returns from the three biggest retailers in the United States, which are Target, Walmart, and Lowe’s Hardware. They then list them for sale in pallets, box loads, and truckloads on the online liquidation marketplace.
You can find customer returns on the marketplace in many different categories, including:
- Shoes and accessories
- General merchandise
- Health and beauty
- Home improvement
- Industrial supplies
- TV and media
- Party and occasions
- Patio and garden
- Pet toys and pet supplies
- Fitness and outdoors
Within these different categories, you will find wholesale merch coming from some of the biggest manufacturing brands in the world such as Samsung, Apple, BOSCH, Fisher-Price, Mattel, Sony, Microsoft, DeWalt, Google, LG, HP, and many more brands.