Customer Returns

What are Customer Returns?

Customer Returns are items that were once sold from the store (or website) and are then returned by the consumer in varying conditions.

Sometimes also referred to as Salvage Goods, Customer Returns are typically items that have been purchased from a store (or online store) but then returned by a customer. Stores have varying individual return policies as well as product liquidation policies which can affect the type & condition of products you may see in varying loads. Though policy will vary from store to store – Large Majority of Customer return goods simply undergo a cursory visual check at the store level prior to making their way into a return load. Higher value items may be subject to more thorough inspection prior to being selected for liquidation.

The general “quality” of customer return loads can vary significantly from program to program and it is common that some programs may have a 50% or greater Defective rate while others are only 10% or 20%. Return loads with low defective rates are sometimes referred to as “Clean” Customer Return Loads. Return Loads with very high defective rates are at times referred to as Salvage Loads.

Customer Returns typically have the following characteristics and stores can decide to liquidate these goods for a number of reasons:

• Defective when returned by the customer
• Cosmetic blemishes or slight defects
• Out of box goods
• Missing minor or major components (remote controls, manuals, covers, cables)
• In-store display items

• Damaged exterior packaging
• Items that the store does not want to or cannot re-shelve
• One or more features does not work
• Store is overstocked with such items

• Out of season items
• Discontinued items
• Defaced barcodes and/or labels
• Signs of handling – both external packaging and the item itself

Often, additional internal store tracking or return labels can be found on the items. All customer return goods are always sold with no warranty or guarantee. Any warranties found with the goods are invalid and cannot legally be used. Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular listing.

Many stores do not have separate programs to liquidate customer returns or excess new merchandise & new shelf-pull or overstock merchandise can commonly be found in customer return loads. Via Trading will always define a listing as ‘Customer Returns’ even if it includes a significant % of Shelf-Pull or Overstock Merchandise. Depending on the product category and each stores liquidation policy – working percentages on customer return loads can vary greatly.

Furthermore, working percentage definitions can also vary depending on the category of goods in question. Often when one refers to ‘working percentage’ of products they are referring to the ‘salable percentage’ of the load. (For example if we are talking about a 6 piece cookware set and 1 piece is missing or damaged – though one may consider the item as ‘not working’ or ‘defective’ it still has a resale value and one can still recover a percentage of the product’s original value). Generally speaking, the recognized industry average when trying to estimate working percentages is said to be around 65-75% working, 20% repairable, and the remainder throwaway/scrap/parts, etc.

In practice, no individual load or pallet will have that exact breakdown, but these percentages are fairly representative when describing the average expected condition of the goods when purchasing them regularly. Ultimately, this is a rough approximation and the actual working percentage on any given pallet or load can be much worse or better.

Purchasing Customer Returns and reselling them for profit is a tried, tested and proven concept. However, before launching into a business venture involving liquidation merchandise, you should know that:

Purchasing department store returns is not for everyone. This is not a ‘get rich quick’ scheme. The payoffs are high for those prepared to work hard and put effort in their purchases in order to create the highest possible return on investment. This is a “get-rich” slowly scheme with hard work, dedication & creativity.

In order to maximize your success with this type of merchandise, you need to be prepared to process, test, check and research pricing on the goods prior to selling them. In the long term (and over several purchases), most people in this industry agree that the payoffs and returns are very profitable and that the long-term risk is generally minimal. Liquidation goods and customer returns are normally priced accordingly, and allow you to profit handsomely while still offering your own customers excellent deals on items.

Please do not get this wrong – after all we do not want to discourage you. This is a profitable business for the large majority and the industry as a whole is approximately $100 billion in size. Bottom line is: if you are prepared to put in a fair share of work and effort, then this could be very profitable for you. If not, we do have new overstock items that are typically in better selling condition and require minimal work on your part. More experienced buyers can benefit from our Graded Potential Revenue Calculator specifically designed to estimate your potential revenues from a customer return load filled with a variety of items in different conditions.

SHELF PULLS

What are Shelf Pulls?

Shelf pulls are items that were already exposed for sale in a retail environment but have been “pulled” from the shelfs and chosen to be liquidated by the store. These goods are typically New and have never been used

Shelf pulls are typically excess goods that have been displayed for sale in a store or online but have never been purchased by a customer. Shelf pulls are typically considered excess inventory from store shelves. In the vast majority of cases, shelf pulls require much less work than customer returns in terms of testing and repairing, but you should expect to have some checking work to do as well as cleaning off potentially dusty items and removing price tags (if necessary) before reselling the items.

Shelf pulls would have been handled multiple times during the process of getting them from the store back to a Liquidator & a small % of items may shows signs of excessive handling & may have stains or slight imperfections.

Shelf pulls will typically be in good selling condition and may have some or all of the following characteristics:

• End of season & seasonal goods
• Discontinued goods
• Items may still have their original retail pricing stickers/tags on them
• Items may have additional retail discount tags on them

• Packaging or item may show signs of handling
• Exterior packaging is often in less than perfect condition
• May be defaced/de-labeled (inner labels or tags removed to prevent return to the original store)
• Some items may still have retail security sensors attached

• A percentage of the items may be out of box or in open boxes
• A percentage of the items may be in-store display units or samples
• Short-dated or expired goods may be found in some lots

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.

Tested-Working

What are Tested-Working Goods?

Via Trading will occasionally offer items that have gone through a testing process and are deemed functional or “tested-working.” These items may be a mix of overstocks, shelf pulls and customer returns and are typically higher end, more expensive units.

• Typically but not necessarily in original box
• May or may not contain all needed items/components (remotes, cables, manuals, etc.)

• Most or all functions work and item can be categorized as functional for resale purposes
• Item may show signs of handling and usage

• Items may have additional labels, price tags and/or internal identification labels or stickers

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.

REFURBISHED

What are Refurbished Goods?

Via Trading also offers “refurbished” goods for sale on a periodic basis. Refurbished goods are items that have gone through a process to test and restore the items to their original working condition. Often these items are repackaged in generic boxes and may not include all the items found in the original manufacturer’s packaging.

Refurbished goods may have the following characteristics:

• Items should all be in good working condition
• All needed parts/components are typically included
• Items may or may not come with the manufacturer warranty (see specific listing for details)

• Items may be repackaged in generic boxes
• Items may show signs of slight usage or cosmetic blemishes

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.

PRE-WORN

What are Pre-Worn Goods?

Via Trading periodically offers a pre-worn (used) clothing. These goods can come from a range of sources and are available year-round. Our pre-worn goods go through an inspection process to ensure quality control and offer tremendous value for money for the right market.

Pre-worn goods may have the following characteristics:

• Pre-worn clothing has previously been used or worn
• Lots may be made up of discontinued brands, models or styles

• Items may show signs of fray and usage
• There are typically no retail tags, labels or additional store markings on the items

• Can be sold by the unit, pallet or by weight

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.