Posts Tagged returns
Discovering how to buy store returns can be very profitable for your retail business, since they can be purchased at incredibly low prices. Chances are, if you have experience sourcing wholesale products, then you have encountered store returns before, but a lot of the time merchants do not realize the potential of buying and reselling store returns.
In this article we will discuss in depth exactly what store returns are and the benefits of sourcing them to sell to your target market.
It is important to understand that there are some issues that come with store returns, but the low prices leave ample room for considerable profit. In order to make the most of your store returns, you should be knowledgeable about these issues and how to handle them.
So, what are store returns, anyway?
Generally, department stores permit their customers to return purchases for various reasons; if the item is flawed in some way, or, if it is apparel, it does not fit properly, etc. Different stores have different return policies, but pretty much all department stores will accept at least some returns.
Products are rarely returned in the condition in which they were bought, for example most are missing the original packaging. This is almost always the case when a customer returns a flawed item.
While it can cost the department stores money, since the items cannot be resold as new, they accept returns in a effort to provide exceptional service and build trust with their customers. Regardless of the potential risk, department stores offer the service to ensure that their customers do not favor the competition, and remain loyal to their stores, since returns and customer service can often be a deciding factor for customers.
Now we will look at what happens to the products once they have been returned to the store. Most stores compile all of their returns into bulk lots. The bulk lots are generally purchased by a wholesale supplier who then sells the returns to their customers, since the department stores cannot sell the returns for their full purchase price, this is the most cost effective way to deal with the excess stock.
For many merchants learning how to buy store returns, a common question is why would you want to sell items that are flawed? The fact that you can have the items repaired and then proceed to sell them while still making a considerable profit, since returns can cost well below regular wholesale price, is what makes this a viable option.
Around twenty percent of store returns are still still in mint condition, meaning they will require no action on your part. It is for this reason that store returns are generally sold to interested parties, apart from other products. It often depends on the buyer’s skills, since an electrician might be delighted to find a broken television at such a low price, which he could then fix and resell for near full retail value.
While it may require some creativity on your part, with some thought you can see that these products, even faulty ones, do have a market for resell.
The internet makes many different methods of earning money available to you, and noe of these ways is selling items on eBay. Obviously, eBay is the largest online auction site, but there are also additional methods of earning a significant income on the internet. Still, eBay is a very good way to get started without making any huge investments of money or time.
The best way to earn a profit using eBay is to purchase items to sell in order to earn a profit. Usually, individuals buy wholesale lots of items and then resell them through their online eBay shops. One other process that is popular is to sell the products of a wholesale supplier directly for them. This way, you can adjust your own prices that you earn a profit for each sale that you facilitate for them. This type of arrangement is known as ‘drop shipping’. Once one of your own customers has bought an item, the wholesale supplier ship this item to your customer directly, and you don’t have to do a thing. This is a smart way to start your business if you’re beginning without any wholesale bulk products to sell, or if you lack the room to store all of the products that you wish to sell.
A lot of people forget about communicating with bulk liquidators when sourcing wholesale items to resell on eBay. When you use bulk liquidators, you can purchase items that are considered to be liquidations, returns, overstocks and closeouts. This type of item is usually still in perfect condition, but will be available at a cost below wholesale - sometimes as little as 20% of the retail cost. Overstock items are especially profitable to purchase from a bulk liquidator as you can then stock multiples of one item, which makes listing all of the products on eBay an especially easy process.
The biggest challenge that eBay presents is the fact that you need to stay above your competition by giving your customers cheaper prices than anyone else. It’s apparent that purchasing your stock from bulk liquidators offers some advantages, as you’ll be investing less cash that your competition is spending on wholesale items.
Don’t forget that running a business on eBay should never be too hard. Honestly, you need to pursue avenues which make selling products on eBay a smooth and effortless process, which is an additional reason which many sellers opt to use wholesalers who offer dropshipping options.
Many individuals incorrectly presume that bulk liquidators will not offer dropshipping, but in actuality the structure of their business allows for larger quantities of items to be made available, which makes dropshipping from eBay a viable option.
If you research which items will be a smart purchase for you, you’ll see that you can quickly earn a profit by finding wholesale products from bulk liquidators, resulting in a thriving eBay business.
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.
If you have chosen to sell items through eBay or another online auction, the most important thing for you to decide is not what you will be selling, but where those products are going to be coming from and the method you are going to be using to sell them. If you decide you want to sell items on eBay, for example, you need to have the knowledge of which items are going to sell the best and which will make you the most profit.
It can be very difficult to determine which are the best products to resell on eBay, but it can mean the difference between failing as an online salesperson and making quite a profit at this venture. So, how do you go about deciding which products are going to be the best for you to sell? Even more importantly, where are you going to find these products to resell on eBay? Although it is possible to use the trial and error method to help you choose the correct products to resell on eBay, you can get the results you want faster by following a few simple steps. The following advice will help you get your eBay auction make you the most profit possible.
Wholesale suppliers are the best place to find a variety of products to resell on eBay or other online auctions. Wholesale suppliers are a great place to find closeouts, liquidations, overstocks, and returns on items that you can then resell. Normally, purchasing items through the wholesale supplier in bulk will allow you to get the items at an even greater discount. If you do purchase these items in bulk, getting the discount, once you resell these products on eBay you will earn an even greater profit. You can purchase pretty much anything — clothing, electronics, games, toys — from a wholesale supplier, generally from closeouts, liquidations, and overstocks on these items. Obviously this means that you are going to have a wide variety to choose from when deciding which products to resell on eBay; and eBay offers tools to show you which items are selling the best.
These tools are utilized by many people who resell products on eBay, but most of the people using them don’t utilize them to their fullest potential. You need to look at the information provided on eBay pulse. This is the place on eBay that shows you which items are being watched the most by eBay users and which items are selling the best. If you have chosen a particular category of items to specialize in, the product list on eBay pulse is broken down by category, making it easier for you to decide just which products to sell.
You should also check out the completed listings tool. This will let you know which recently listed products have sold well on eBay in each category, as well as which items didn’t sell. This will not only give you an idea of the price you can expect to get for an item, but also the competition you are going to face from other auctions. This will help you determine how much you should be paying when you buy your items wholesale and how much you should be paying your drop shipper in order to make a profit.
Many whose business is buying and selling are convinced that wholesale suppliers give them the best advantage by obtaining great deals and source items at the least price. In many cases this is true, but oftentimes you will find that other channels may provide better prices on goods to resell, with better profit and less effort involved.
You may source products at prices less than wholesale through merchants of closeouts, overstocks, and liquidations. Further, some wholesale suppliers may deal in these products as well, but it is possible that you simply were not aware that they did. Sourcing these items may increase your profits, but there are some things of which you need to be aware before jumping into the world of closeouts, overstock items and liquidations.
When you have decided to source your wholesale products, including overstock items, closeouts, and liquidations, it is important that you determine that you are dealing with the base source. If you do not know for certain that you are buying from the base source, you may find that you are paying marked up prices for products which do not need to be so expensive.
Now, this does not imply that you should go directly to the business which is the source of the overstock items, since most companies have strict supply agreements with wholesale liquidators, giving them exclusive rights to the products. These wholesale liquidators will be the source of overstock items for retailers.
The following are some suggestions to assist you in beginning to source overstock items:
1. Question the stores to determine just who purchases their overstocks and returns. While sometimes they will be very secretive, very often they will happily provide the information you request concerning the contact information of their overstock items merchants. As an aside, some of the larger stores will not disclose where or how their overstock items are processed due to a fear of scams involving returns.
2. Find out from the stores how they dispose of their overstock items. They may not tell you directly where the overstocks are sold, but you can discover whether they use a wholesale supplier, simply discount the products themselves, or ship the items to their own outlet stores.
3. If you are positioned such that you want to begin dealing in overstock items, you should question the store about the process of becoming a supplier. Normally, you must have some type of business established and be able to convince them that you have the financial wherewithal to purchase large volumes of stock.
Research the situation. While many overstock items may not be advertised as being from the store from which they were obtained, if you are familiar with your product ranges, you should be able to connect the products to their source. Understand what you want to purchase and be informed of the proper prices to pay and you will be well on your way to success in reselling overstock items.
Retail closeouts, overstocks and customer returns can be an ideal source for inexpensive, quality products if you are trying to start a retail business of your own and marketing to the public. These products are full of potential for profit. You simply need to understand them and how you can successfully retail them to potential customers.
Most individuals don’t understand the fact that customer returns can be resold for a profit, whether their own retail outlet is online or an actual physical location. Obviously, you need to know a few things before you purchase returns from customers.
Usually, these items have been bought and brought home by people, and as a result, most wholesale liquidators will be unable to give you the original packaging for these items which you purchase. Before your customers purchase anything, just inform them that the item does not come with the original box.
Customers usually originally return items because they are the wrong color or size, or received the item as a gift and do not want it. Some of these items may have some superficial damage, such as a dented exterior, and some may be malfunctioning entirely right out of the box. Occasionally, these items are easily fixable, but they can also provide parts to fix other items.
Alternatively, you can pursue the purchase of overstocks, another excellent way to buy bulk, wholesale products. Overstocks occur in stores when the original retailer just can’t sell the item effectively. These products are still new and pristine, but sometimes the location or marketing of the original retailer just can’t move these items. Online shops are a great place to sell these items, as you can buy them at minuscule prices and resell them to a much wider, more eager audience on the internet, which means higher profits for you.
When you buy returns from customers, you might be curious about where to resell these. This is highly dependent on what you plan on buying. Lots of items will be strong sellers on eBay, Craigslist and even at flea markets. You might also need to hunt for websites that specialize in the kind of items you want to sell so that they can reach the people that they are designed for. Products like clothes do well in a basic retail location, in addition to online and at marketplaces.
When you’re reselling and buying customer returns, it’s wise to try and thing outside of traditional selling techniques. Occasionally, it’s smart to sell wholesale products in groups, especially if it’s a type of product that someone might want more than one of. By offering a solid collection of inexpensively priced products, you’ll establish yourself as a successful retailer, and someone who understands that there are good profits to be made from customer returns at wholesale.
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.
Many people who run retail businesses, whether online or at a physical location of some kind, often question the best way to start finding liquidations and returns so that they can begin to earn much larger profits. This is an excellent inquiry, and definitely a smart method to maximize your profits if you are selling items within your business. Here’s a look at how this process works in greater detail.
As a seller of products, you generally will obtain your items from your wholesale source, which will give you the best prices on these items. After this, you typically generate a profit by increasing the resale price of these items before you sell them to your customers. These methods are a great business plan, but this plan can be altered so that your profits are even greater.
Research your wholesale supplier and find out if they also function as a closeout merchant, which can make finding liquidations and returns a much simpler process. Generally, finding liquidations and returns means that you’re locating products that are being sold at prices far below the original wholesale price. Sometimes, you can even find items that are reduced to a cost that’s only ten percent of their retail price. Considering the profits that this plan can generate for you, it’s clear to see why many retails think that this is an attractive option for their businesses.
Typically, products that have been liquidated are purchased by a wholesale supplier in bulk quantities when the company in question has left the business and is looking to regain a small amount of profit to cover a portion of their losses. Because of this, these items are typically sold at extremely low cost.
You can also purchase items that customers have returned to the store because they didn’t want the item, or the item was damaged or did not work properly. You can purchase returns in bulk lots, which are considerably less expensive, but can also include products that cannot be resold. Either methods can result in large profits for your reselling business, however.
By identifying legitimate dropshippers for these products, you can increase your profits to even greater amounts. If you use legitimate dropshippers, you can have products shipped directly to your customers, as opposed to having the item sent to you and requiring that you resend the item to the customers - effectively eliminating the middleman and extra expenses. This system can save a lot of time for you, as well as effort and time, which you can use to effectively increase the size of your business.
When you combine legitimate dropshippers with finding liquidations and returns, you’re guaranteed to increase your profits within your retail business. This model is exceptionally effective for catalogue-based businesses and online retailers, but it can also work if you operate a more typical retail location, as these methods can help you sell items that might be hard to stock or are unusually expensive or bulky.
Some desires that bought simply don’t make it as possessions. You take it back to the house, and somehow, you’re just not as crazy about it. It returns from whence it came, an agreement is finally negotiated with the store, and now the product is just another consumer return. So, what happens now? Does the product return to its’ old shelf-life? Is it simply disposed of? Consumer returns exist in a rather gray area, but when retailers can brush away the fog, these returns can equal out to big profits.
If something is being returned, either it is defective, or the customer has had a change of heart. A major irritation faced by wholesalers is the serial returner, or people who use the product for a while and then take it back. A lot of retailers are reducing these returns by using databases that supply the number of the customer’s driver’s license. Another type of chronic returner is the “Undecider,” These shoppers simply can’t make a decision between styles or types of the same product, and so buy a collection, make the decision at home, and then bring the unwanted items back. However, honest, trustworthy shoppers make up the last division of customers. They will only bring something back if it’s defective, and if they’ve had a change of heart, they replacement buy from the original company.
Attempting to obtain absolute information concerning client returns is an exercise in futility. Don’t lie to yourself though, they’re out there. In fact, a lot of retailers employ very savvy technological equipment to keep an eye on customer returns. Thanks to fast networks, special computer applications, and unified cash registers, the time it takes to get return data is now only 48-72 hours after the return is made. These impressive systems that process returns have also made it possible for the returned items to be quickly liquidated and put on market by wholesalers.
Change of heart returns and returns made due to a defective product will not be handled in the same way. A returned item will be refurbished if at all possible. “Refurbishing” is when the product goes to the manufacturer to be inspected, repaired, and then returned to the shelf for someone else to fall in love with. It’s a given that a few items will receive some injuries en route from plant, to sales floor, to the home of the consumer. Sometimes a renovated item will be labeled with an entirely new brand name in order to save the image of the original brand name. These items usually still end up being sold by wholesalers and liquidators, but sometimes they are advertised as a a whole new being for first-cycle retailers.
Wholesalers and liquidators often buy change of heart returns and defective items that can’t be prepared in large quantities. They don’t usually contain much merchandise that is honestly harmed or broken, and the wholesalers will mark them with the term “customer returns.” Getting a good deal and making a nice profit when the item is resold are worth the small amount of uncertainty involved. Internet sales continue to lengthen the distance between change of heart returns and defective returns. Every year more people are choosing to do their shopping with internet merchants, or online locations of known chains. Consumers are shopping by photograph, unable to try anything on, unable to touch or feel the product, and so many items are received with disappointment. This works out great for wholesalers because it gives them more “like-new” items that can be made available for resale.
These days, an items’ return factor, liquidation cost, and refurbishing are all part of what suppliers and manufacturers use to make up the base price of the item well in advance of advertising. Lousy, archaic, undesirables no longer reign supreme in the world of wholesale marketing. As businesses become more interested in the correlation of customer happiness with return information, it is the wholesalers who will reap the bounty. Unequal budgets can now manage to afford equal quality, albeit at different stores, thanks to the tighter cycle of consumer returns. Wise wholesale businesses can take the increase in consumer returns and make a profit with it, your business could be one of them!
We’re seeing drop shipping e-business boom all over the digital world. Ebay stores, Yahoo! Stores, even private e-commerce web sites– who doesn’t love a business model with very low risk and easy maintenance? As a drop shipper you don’t have to store any inventory, hold very low overhead (if any), and just concentrate on advertising your popular items and providing great customer service. Eyes go wide when e-business owners realize orders come in and ship out without any interference or work from them!
But why only drop ship retail goods in ones and twos when there is an entire business to business market willing to buy in bulk? There are so many headaches in drop shipping at retail prices to an end consumer. An initial problem is finding retail customers in the first place. The Internet is an instant cost comparing tool– if your wholesale feed is available elsewhere on the web you will be competing in a race to rock bottom prices. With so many web retailers drop shipping in similar circumstances, there is just no wiggle room in the price to entice customers and keep e-businesses in the black.
Once you have a retail customer buying from your drop shipping web site, rarely will an end consumer want more than one item. Therefore, retail drop shippers are forced to carry the higher end products just to make a profit. Higher end wholesale products come with hefty shipping fees, either due to weight or value, and end consumers are conditioned now to expect free shipping on most orders over $50. No big deal, you will just lose shipping costs out of your profit margin right?
What happens when the customer also expects impeccable customer service by demanding a return? You’re now wasting man hours on resolving the issue trying to avoid a return– one that is completely reasonable to the customer but completely unreasonable to your business. The customer doesn’t like the color of the item, it doesn’t look right, it arrived too late as a gift (because they ordered it at the last minute) so they bought something else, or any other excuse in a long list of worthless complaints. Bottom line the product works, but the customer doesn’t want it anymore. Now, they not only want a refund on the order, but you are also stuck with the shipping costs of getting the item back.
Retail drop shipping only one or two items per order means each transaction is typically smaller than a business to business bulk drop shipping order. This is a problem for any e-commerce merchant as transactions have costs. There are administrative costs, whether it’s your time or an employee’s, fees from banks or Paypal, shipping costs, and insurance and business operations costs as merchants protect themselves against fraud. As a retail drop shipper you just can’t compete with any low priced single items available at a store.
So how can we make selling a $1.00 kitchen spatula work in a drop shipping model? Easy, sell them in case lots of 20, 50, or even 100! Where the retail drop shipping market is very over-saturated with every person able to buy and sell on eBay, the business to business (B2B) market is still in need of quality bulk drop shipping web properties. Wholesale vendors and even direct from the factory suppliers are usually too busy to trifle with selling on the Internet. But they’re more than willing to take your orders if you are willing to develop and run the web site and deal with the customers!
Or it may be smart business move for the wholesale supplier to protect their prices by selling through a third-party: YOU! There is so much that goes into pricing a durable good– how many is the buyer purchasing, what additional items will the buyer also procure from the same company, how often is the order to be filled? Large wholesale distributions don’t have the time or expertise to deal with smaller business buyers. Bulk drop shipping for B2B purposes protects wholesale suppliers from selling goods on various complicated contracts at the same price.
If you’re a drop shipping e-business owner used to only thinking retail, you’re probably wondering who on earth will buy from a drop shipping web site specializing in business to business? Easy, tons of people! Here are just a few:
1. Small Brick-and-Mortar Retail Stores
You know these as specialty stores or “Mom and Pop” companies. Often these are the small stores in malls or shopping centers. These business owners can’t afford to run around town to gather business inventory, they have a shop to run! Buying direct from a big time wholesale distributor doesn’t work either as they usually only need a case lot of two of an item in the stock room.
2. Swap Meet, Flea Market, or Online Auction Sellers
Even in a booming economy, there are always those customers looking for a bargain. They can be found at local public swap meets, flea markets, or bidding at online auction sites. The small business owners running these stalls or virtual auction houses need inventory to sell! Take a local trip to the flea market and give out information about your wholesale business to business website.
3. Offices, Nonprofits, and Charities
Most of these entities use a super store card or bulk membership to stock the break room, office supply closet, or any other needs. The employee responsible for buying in bulk at the local mega store will be thrilled to just point, click, and ship directly to the office!
So why don’t all of the online business men and women running retail drop shipping web sites diversify into business to business (B2B) transactions? Some don’t even know the market exists; others don’t want to take on a completely different web property. There is a saying “If you always do what you’ve always done, you’ll always get what you’ve always got.” There are eBay and Yahoo store owners out there satisfied with their e-business earnings and dealings. They don’t want to rock the boat.
History has shown truly successful business men and women are always after that next mountain top so to speak. Running a B2B bulk drop shipping e-business isn’t any more difficult than a retail one. In fact, it so much easier in many ways. A business customer is usually more reasonable to deal with than an individual end consumer. B2B customers are repeat customers, eventually little effort is needed to bring in new customers. Compare that to one-time retail customers you have to replace with other first-time customers! Orders are also larger on a B2B bulk drop shipping site, meaning more profits per transaction. B2B bulk drop shipping is just a better e-business investment by far.