Posts Tagged Costco
Many people who are in the business of purchasing product to resell, have often wondered where Costco returns end up. Why is this a common query in the wholesale sourcing environment, and why does this question have any bearing on your business? We will first need to determine what Costco returns are, and why individuals are so eager to get their hands on them. Items returned to Costco stores by customers are Costco returns. Customers return these items for a variety of reasons including that they are not doing the task that they were needed for, they were gifts that were not wanted, or maybe they were broken.
Wholesale liquidators have an agreement with Costco to purchase in bulk, these products that have been returned, and the liquidator in turn will sell them to clients of their own. You can expect to pay the wholesale liquidator anywhere from ten to forty percent of the item’s original price, depending what the wholesale liquidator had to pay for the item.
You can then take these products that you have just saved a great deal of money on, and sell them in the arena of your choice. Different procedures are appropriate for selling different products. There will be those items that sell well using several different methods, so you may increase your exposure by utilizing all of the methods.
You may choose to sell your returns, closeouts, and overstocks at your online store, on eBay, on Craigslist, in catalogs delivered to your neighborhood, at flea markets, at yard sales, or possible at retail store location.
Along with your own experience and understanding of the product, some helpful advice for deciding where to sell your products are: Big ticket items like plasma TVs and other electronics do well on eBay and craigslist.
Flea markets and the internet are great places to market your clothing and accessory wholesale products.
For household products and food items obtained through Costco returns, your best market will be individuals who are searching for inexpensive bulk purchases, so flea markets and local stalls are a great place for selling these products.
For individuals seeking to profit through a retail endeavor, purchasing Costco returns has allowed them to realize excellent financial gains. It is unnecessary to worry about failure to sell items, as you have the advantage of having sourced them at under wholesale cost, and will sell them with little effort. It will be your choice whether you want to go with large quantities and dirt cheap prices, or just concentrate on higher margins of profit, but whichever you select, locating a supplier of Costco returns will be an excellent way to get your business off the ground.
As soon as the majority of people jump into the arena of online sales, they impulsively presume that they will be able to profit from big brand labels and garner major income like an exclusive department store. However, retailing will not typically work in this way while the majority of high-end corporations refuse to deal with smaller retail outlets. Although, there are several approaches you could employ for selling brand name merchandise in particular regions, so long as you are prepared to be educated in the current loopholes in today’s supply chain.
One of the most effective methods you could use involves sourcing some Wal-Mart wholesale suppliers. You may be curious as to why that is, so we will discuss where the loophole is found.
Big chain retailers like Costco and Wal-Mart do their business with wholesale vendors that not only find items for resale but also take care of liquidations, customer returns and overstocks. Since you are a retailer, this means that you have the chance to purchase items from Wal-Mart under the original wholesale value. This usually denotes that you could source items for as little as 10% of the original retail value. If you think about it, this means you have a chance to generate a large income just from the resale of items to consumers or you could sell them at discount prices to make just as much money; now you can see why the sourcing with Walmart wholesale suppliers is so profitable.
In order to fully comprehend where wholesale inventory like overstocks, closeouts and liquidations originate, we will go into more detail about the actual sales process. As a rule, there are several distinct reasons as to why a retailer winds up not having the ability to vend an item to their shoppers. This does not denote that their items are faulty or impaired; all it means is that the store has made some mistakes with the way they execute their sales approaches.
First, we will analyze overstocks. Overstocks are the result of large department stores that have ordered a surplus of one product for selling. It could very well be that the particular product ordered was not in demand for that specific area, or perhaps the store has not advertised their product well enough. If that is the case, overstocks that take place won’t even reach the store floor. A wholesale liquidator could buy those products at a discount value and resell them to you.
However, closeouts are another story. Closeouts are when an unusual set of products has been discounted, thus never sells. This is especially frequent with clothing. Since these items use up valuable floor space that could be used for other full-price items, they are just taken away from the display and given to a liquidation wholesale vendor.
Finally, actual liquidations take place when a store closes out for good and creditors make the effort to earn back any sort of debt.
Every one of these scenarios will result in largely reduced inventory, and if you are able to source Wal-Mart wholesale suppliers that trade in such merchandise, you could very well be in for some very profitable sales.
It is true that you can find wonderful deals by shopping a Costco. However, did you know the the bargains are even better if you shop at a Costco liquidator? Most people don’t even realize that Costco would use liquidators, let alone use them on a regular basis. These people believe that a business a big as Costco wholesale would be able to use their distribution channels to handle all their closeouts, overstocks, and liquidations.
What is the process a Costco liquidator uses? Each Costco liquidator works on a store by store basis. With the large distribution network Costco wholesale has, it is too much trouble to return overstocked items back to their warehouses. Costco liquidators come in to help with this problem.
With Costco being such a large store, there are times when they have overstocked products due to a lesser demand than was projected or do to the demand in one geographic area being lower than that in another. Having projections for products that are not accurate causes Costco to be left with products that did not sell and must be gotten rid of. With this in mind, each Costco store has made a contract with a liquidator. Sometimes an individual liquidator will have contracts with more than one Costco store, in order to have a supple supply of product. Costco needs to find a way to get rid of any overstocks so that they can use the shelf and floor space, taken up by these, for products that are in projected to sell, In order to keep prices low, Costco has to ensure that products being sold have a high turnover and make a good profit from their large volume of customers.
In order to help Costco get rid of the overstocks, the Costco liquidator buys the products from the store in bulk. They are able to get the products at a very low price and will often purchase more than one type of product during each bulk purchase. Once the items are removed from Costco, they are marked as liquidations. Most times this is a small mark beside the barcode or serial number. It is used to prevent people from trying to return any liquidated item to Costco to get a refund.
After the liquidated stock has been marked, Costco liquidators can make customers aware of the stocks availability. Sometime liquidators will offer drop shipping services for individual purposes, or they may sell the liquidations in bulk. As a retailer, it is you who has to make the decision as to which method will work for you. You decide this based on where and how you are going to be selling your items.
For those retailers selling online or through catalogs, it is a good idea to let Costco liquidator’s drop ship the products to your customers. Doing this eliminates the need for you to store or keep track of stock and allows you to sell a larger variety of products. For those selling out of a land based store, you are better off purchasing your product in bulk from your Costco liquidator. This will allow you to have stock available for your customers to purchase and immediately take home. In order to benefit from the lower prices and greater options, research to find out if your wholesale source has Costco liquidated stock.
Many people on the internet are looking to find out what happens to Costco returned items. They are looking to take advantage of them for individual use or to resell them to customers through a retail business.
In order to have a better understanding, we will talk about where Costco returned items comes from and why they process them the way they do.
With the very flexible returns policy employed at Costco, consumers can return items to this giant wholesale company even if they have been used and/or damaged. Recently, however, Costco has made the policy stricter, by only allowing high priced items to be returned within the first 30 days of purchase if the consumer feels they are faulty.
Consumers continue shopping at Costco because a receipt is not needed in order to return items to the store. Costco is able to do this because this wholesale store is based on membership shopping. This allows them to search their computer to find purchases that are made on each membership. This also enables them to be certain you are not returning any stolen goods and trying to get a refund.
Once a return is processed, Costco places it in a returns bin in the warehouse. Many returns are damaged items, wrong sized clothing, and items consumers decided they did not want. Since Costco cannot be sure of what items consumer will return, the returns bin has a very large variety of items.
In order to save time and money this wholesale giant does not go through the items that get returned. Instead, they establish contracts with liquidation merchants who make a bulk purchase of Costco returned items. Costco does has the same process for overstocks, liquidations, and closeouts.
Most of the liquidation merchants who contract with Costco for returned items will also be wholesale suppliers dealing with end-retailers. With this in mind, if you are a retailer who desires to purchase stock which is highly discounted, in order to make a bigger profit, you will want to look into sourcing Costco returned items from your wholesale supplier. This can be a very effective way to get high quality, inexpensive items for your business to sell.
You have to use caution with these products, however. As mentioned earlier, Costco does not guarantee what products are in the returns bin, thus, they may not be “grade-A” quality. In truth, when making a bulk purchase of Costco returned items from your wholesale supplier, you need to expect items in various conditions.
Unfortunately, for those looking to make drop shipping arrangements, it is difficult to drop ship Costco returned items. The only way to do this successfully is to resell them in bulk to your customers. This can be a viable option if your customers are people looking to buy discounted goods to sell on eBay or at local flea markets.
In order to prevent Costco returned items from being returned to Costco a second time, Costco employs a practice of discreetly marking all returned items as returns. This is a fraud prevention strategy that was put into place so wholesale agreement can continue to be made and people can profit on all ends.
Recently, I was looking through an online forum in which someone asked, “Can you return stolen items to Costco?” It seemed like a rather odd question to me at first, but when I began to contemplate the implications associated with this type of transaction, it began to seem like a more reasonable inquiry. So, the following is a more detailed explanation of what this involves.
Naturally, no crime of stealing and reselling stolen goods should ever be condoned; however, this fact aside, the answer to the question of whether or not you can return stolen goods to Costco is actually yes.
It is Costco policy to permit customers to return items to their store even if they don’t have a receipt since pleasing the customer is one of the most important parts of their business strategy. Costco will provide a full refund for a product if it is broken, damaged or unwanted; it doesn’t have to be in perfect shape, and doesn’t even have to still be in the box or have the labels on it.
A few years back, the first problem that came up as a result of this practice arose when liquidation services contracted with Costco started selling salvaged goods that had been taken back to the stores by consumers to department stores.
This practice is based on the concept that the wholesale liquidator will ask for a low price in exchange for the goods, and while the product might not be in mint condition, the person who ends up with it will be satisfied.
However, what was actually happening was that people were abusing Costco’s return policy by returning the products they had purchased in bulk for discount rates back to Costco in return for a full refund. Significant changes were made to wholesale liquidator’s contracts with Costco in order to prevent this practice since Costco lost a large amount of revenue from the abuse of their return policy.
Because stolen items could also be used to exploit Costco’s refund policy, they had to start enforcing additional regulations in their return policies. Now, if you’re taking back electronics, you have to do so within 90 days of the date when you bought them. It’s not explicitly stated in their return policy, but it does indicate that you will need to prove the purchase date by bringing along a receipt.
Customer returns that are received by wholesale liquidators also specifically indicate that they cannot be returned. The enactment of this new policy has allowed customers to continue taking advantage of Costco’s low prices and has also saved the company revenue.
Costco is making a dedicated effort to maintain a high quality shopping experience for its customers, although a few criminals will always attempt to get around the regulations in place.
Are you aware that the Costco Newsletter contains a number of items that are available at reduced prices during specified periods within a year? Savvy shoppers know the Costco Newsletter gives them better prices on merchandise and have signed up for the Costco Newsletter which they receive through email. Retailers like you can use the Costco Newsletter as a guideline to help you analyze the shopping choices and spending habits of your targeted customers
What can you do against a competitor like Costco who is able to its goods at reduced prices? Wholesalers offer retailers the same opportunity to purchase their goods at the identical prices given to large stores like Costco, which works to your advantage.
The drawback of the lower prices of items offered in the Costco newsletter is based upon the fact the purchaser must buy a large quantity of a specific product to receive the lower cost, and the majority of people don’t have the means to do so. In order to keep the cost of the product within their spending range, many consumers elect to pay a little bit more money.
Another good reason to buy your goods through Costco is that a lot of the merchandise it offers comes from stores going out of business or who are selling overstock items. Before large retailers can receive new merchandise, they must move the older, unsold goods from their shelves to wholesalers with whom they have agreements. The liquidators are able to sell the goods at a lesser cost to their wholesalers due to their ability to buy the surplus merchandise at an exceedingly low price.
You could possibly compete by selling items under the prices listed in the Costco newsletter if you were able to locate excess merchandise and purchase it below cost. Web-based and catalog businesses do not have the same physical constraints as a store; therefore, they are less apt to be faced with surplus merchandise because their consumers are not concentrated in one specific region.
The Costco Return Scam is a concern that must be addressed. Too many people decide they don’t desire the item as much as they thought, or will buy something for one-time use and take it back to Costco. The Costco return scam is widespread as customers take advantage of Costco’s commitment to customer service, which results in the items being sold to liquidators at ridiculously low prices. You can take advantage of the lower cost of products your wholesaler may have purchased that were components in a Costco return scam if you sell used items or refinish others before offering them for sale.
No matter what your business, you have the power to compete with well-known brands and to give your consumers a superior shopping experience. It’s quite possible the Costco newsletter could be overshadowed with the appearance of your specials catalog in your customers’ mailboxes.
Costco realized that they were being regularly scammed with false returns (a problem for many businesses)and felt that they had to do something to protect themselves from the large amounts of fraud being perpetrated upon them.
You need to know the history behind the process in order to understand how the Costco returns fraud was possible. Wholesale liquidation sources are often contracted by most big stores, like discount or department stores, to take shipments of returns or surplus inventory. Surplus inventory can be attributed to many different factors, ranging from geography to overpricing or lack of customer demand for the item. Surplus inventory is considered when pricing is strategized; it is an accepted part of the retail business.
When it comes to returns, however, the situation changes. Because Costco has a lenient return policy and will take returns on unwanted or damaged merchandise without a receipt, they are very open to Costco returns fraud.
Because wholesale liquidators simply sell overstocks and returns in bulk at drastically reduced prices to the public, there is no way to know if a buyer has purchased at item at the liquidators, gone back to Costco and returned it for a full Costco store credit. While Costco returns fraud costs the company millions of dollars, Costco would prefer to keep their lenient return policy as it currently stands; this unfortunately puts the company in a situation with no apparent solution.
Wholesalers and liquidation contractors actually have an obligation to Costco to remove anything and everything on the packaging of any item they receive from Costco store returns surplus to ensure that Costco returns fraud cannot happen. Label sanitation is when this obligation is fulfilled.
As the wholesale supplier is not allowed to tell you that the products you are purchasing from them are Costco store returns or surplus items, you cannot be certain as to where exactly the liquidation products you are purchasing are originally from.
Removing all of the labels and Costco-specific brand name badges creates a lot of work for the wholesale supplier, but agreeing to take the time to do this extra work is why they are able to buy the items at such low prices from Costco stores to begin with.
Sourcing your products by this process is a way that you, as a retailer, can get great discounts on products to on sell in your store. Costco items can often still be identified even after you remove all of the identifying markings, which can assure your customers that the items they are purchasing from you are of high quality and originally from a trusted store.
Some electronics and similar items from Costco store returns and surplus will arrive at the store of the contracted wholesale supplier with markings indicating that they are salvage items on the packaging. This is to ensure that Costco returns fraud is unlikely, not an indication that the quality of the item is low. Most people these days are doing all that they can to get as good a deal for their money as possible; this means that the small tag will not be considered important enough to deter them from making what they will know to be a great purchase.
Outsourcing is key when it comes to transforming your business from one that is insignificant to a serious money maker, as well as being intelligent about the choices you decide upon. Even if you are making decent money now, you can always improve where you stand and expand on what you have, if you reinvest a portion of your profits back into the business. You need to fully understand how to work the system by using drop shipments from Costco on eBay, before you put them to use and begin to expand your business by leaps and bounds.
When you get the opportunity to become affiliated with Costco, you need to be aware that you are about to make amazing profits, and do not get discouraged when the products you sell are inexpensive. Using Costco to work the drop shipment side of eBay is going to yield a positive end result with half of the work.
Many people in our country utilize Costco as a supplier of wholesale goods. Many products that Costco sells is made primarily for them and can’t be purchased in other locations, making them something quite different from a real wholesale supplier. They can price these products any way that they like, because customers can only get them in Costco, and then price anything else inexpensively. Just like any other retail outlet, they often have a surplus of products that they need to sell quickly, and to do this, prices get marked down.
You, too, can become an actual Costco vendor, if you can find a 3rd party that specializes in Costco liquidations. Wholesale sellers that specialize in liquidations, purchase merchandise at inexpensive prices and in large quantities. Advertising that these products originate from Costco and are a return is a huge no-no, though if you are intelligent and look closely at the listing, you may be able to tell that their original source was Costco.
You can use eBay, if you are a seller of merchandise, to make good use of drop shipments from Costco. eBay is an amazing source for people that own businesses that are small and it is used often to stock inventory with bulk wholesale that stems from Costco and can be shipped via drop shipment. It is so simple to utilize drop shipments from Costco via eBay for your customers, because you will never have to handle or stock any of the products that you sell, but instead you will let the supplier know that you have sold something, and they will handle the rest.
Be sure that you are careful in how you advertise your merchandise, because Costco does not like it when you mention them in a listing, leaving them vulnerable to fraud, but you can let your clients know that they are buying wholesale items that are popular and made well, from a well known retail outlet.
Using this system is an easy way to make money surprisingly easy and fast. You need to become fully educated on how to get prices that are inexpensive, and how to work with wholesale liquidators, otherwise you will end up paying far too much money for things like shipment and your profits will definitely begin to dwindle, when you could be making much more money. The chance to become a vendor of Costco is one that you should not pass up, as it is the opportunity of a lifetime.
When Costco has some debts that need to be paid and they decide to sell some of the products they have to many of, it is called Costco bulk liquidation. Even with the amount of money Costco makes, they sometimes will need to sell items to pay some of the bills they have. When they are not able to sell these products as fast as they would like, they sell the products to wholesalers at a lower price. Those wholesalers, also known as Costco liquidators, turn around and sell those same products to their customers. This is an excellent manner of getting products for your own standard or online store.
There are times when Costco needs to rearrange their store and Costco bulk liquidation happens, but the majority of the time, Costco just needs to get rid of extra Costco quality products that don’t have anything wrong with them, but are in the way in their store.
When Costco is trying to sell these products to Costco liquidators, they are not interested in making money off the products, just getting rid of them, which is the reason the liquidators can market them at such low prices.
When you find a wholesaler who specializes in Costco bulk liquidation, you will be able to purchase great products at rock bottom prices. The down side is that because of how quickly they want to move the products, you may be required to purchase large quantities. When you think of the great deal you are getting and how much your customers will love the low prices of these products, then you may think there really isn’t a down side to it at all.
There are a few times when products you see at Costco liquidators are things none of their customers wanted to purchase. Buying something that you won’t be able to sell is never a good thing, but if you consider the cheap price that you are buying it for, then if you sell these items at an even lower price to your customers, they may consider buying it because it is so inexpensive. You should think very hard about this before you buy the product.
If you are able to locate a Costco liquidator that specializes in more than one kind of product, then this will allow you to choose from a variety of options. You may be able to find an wonderful assortment of great quality Costco items ranging from clothing to electronics from this kind of liquidator.
Costco liquidators are doing their part to help out today’s struggling economy. Their businesses allow people to buy great products at low prices, so they won’t spend a lot but they will get a lot. In today’s economy, everyone is searching for that one great deal, so it is the perfect time to look into purchasing some wholesale products to sell to your store customers, and if you are aware of how to get the cheapest high quality items, then you are sure to make a great profit.