Returns are a major problem for online retailers. There’s the cost to process returns, inventory the overstock products, liquidate inventory, and pay for staff and other resources to make all this happen. Then the retailer must sell excess inventory into a secondary market where it is offered as closeouts and returns for deep discounts. There is an entire industry evolving to sell customer returns and overstock. These closeouts and distressed inventories are profitable business for closeout buyers. As the old saying goes, “one man’s trash is another man’s treasure”.
While the return rate for brick and mortar stores is around 8%, this jumps to 25% to 30% for items bought online. Problems with delivery, like delays and damages, account for many returns, but when consumers know they can easily return anything they buy online, for pretty much any reason, they have little hesitation to place orders.
Another key reason was that items did not match descriptions or customer expectations, which suggests retailers have to work harder to provide information and product images, so that customers are making more informed purchase decisions. Online retailers understand they will have to deal with closeouts and overstock inventory due to the increasing return rate. They expect to sell excess inventory to deep discounters because when products are returned they are often out of their packages, damaged, or completely unsaleable. Special overstock buyers who sell excess inventory at auctions and on auction websites breath life back into this otherwise dead inventory.
If you want to get into the online returns business and liquidate inventory, you can start with Amazon returns. Amazon does not repack damaged inventory or closeout returns to be sold again as new. But you can find graded customer returns on Amazon’s “Warehouse Deal” sale. This is one way to liquidate inventory for resale if you want to buy individual Amazon returns. However, you can get much more bang for your buck as a reseller by purchasing overstock Amazon customer return pallets. If you are willing to sort through these closeout pallets you might find great deals on overstock toys, housewares, home accessories, craft closeouts and much more.
Target store returns offer a wide range of closeouts for resale. Housewares, home decor, toys, and even mixed lots are available. This means you’ll find a lot of overstock and surplus inventory to choose from, and these products are perfect for almost any reseller site offering deals on closeouts and excess inventory. Most of the returns from Target fall into the “like-new” condition because in many cases the customer simply changed their mind or no longer felt they needed the merchandise.
If you are interested in closeouts and overstock of home decor, home accents and furniture, you may want to concentrate on liquidations from Wayfair.. They often liquidate inventory by the full truckload and are willing to sell excess inventory at large discounts, These liquidation auctions offer the latest trends in housewares, home accents, wall art, tabletop, gift ware, and much more. For this type of liquidation, you’ll have to be an experienced closeout buyer with the resources to handle large volumes of excess inventory. This will require plenty of warehouse space to sort and store, and warehouse staff to go through everything. When companies liquidate inventory or sell excess inventory in large lots like these, it can take days to sort one container of merchandise.
Merchandise USA is one of the largest closeout companies in the United States. We specialize in buying unwanted merchandise, discontinued inventory, overstock merchandise and surplus products. We buy and sell excess inventory.