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.
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