Posted by Alex Jackson on October 14, 2016
Why are you doing another blog on customer return items didn’t you cover this already?? Well yes actually we did we talked about the ins and outs of processing customer return merchandise but there are a few more need to know facts about customer return merchandise. Don’t get the impression that we are we trying to discourage you from purchasing them(we have a ton so please don’t!!). Many of our clients specialize in these lots because of the fantastic margins that can be achieved again up to 95% off list is a lot of room for margin but don’t ignore the potential pitfalls chasing a profit.
Manifest discrepancies are possible- Customer return merchandise by their nature are difficult to accurately process. With many items missing tags and product identifiers it is possible for items to be misclassified when sorting into wholesale lots. Typically this happens within brands so it is conceivable to receive the correct brand but a different model than the one listed so be aware and diligently match your manifest to the items received.
Labels can sometimes be deceiving- Although very uncommon it is possible that an item was mislabeled this sometime occurs on the store level when the article is returned it is possible for an article to be mislabeled as another similar item. In extremely rare circumstances this is a deliberate act of fraud by the consumer attempting to return a different item either a less expensive or worn item for the cash value of the more expensive new item.
Condition may vary greatly- What can you expect with customer return condition merchandise? Anything from pristine with tags to salvage and everything in between. Large retailers have a well-deserved reputation for accepting virtually any returns. For the most part customer returns are legitimate and relatively free of damages however this is not always the case. Many of these items may have been worn once or twice and might show some signs of wear from it. Often a customer might inadvertently damage the article from use and then return it claiming the item was defective. Some of the most common issues can be broken down by category:
Men’s, women’s clothing- Stains, rips, small or large holes, missing buttons, defective zippers.
Children’s clothing- Stains, rips, small or large holes, missing buttons, multiple piece sets often missing pieces.
Designer handbags and handbag/wallets – stains, rips, small or large holes, general wear and tear, scratches or nicks to leather good items, defective or inoperable zippers.
Men’s and women’s shoes- nicks, scratches, signs of wear to the heel, missing laces, mismatched shoe sizes.
Home good’s, kitchenware, Holiday, glassware, general merchandise- Open boxes, missing packaging, missing pieces, broken pieces, scratches, dents and chips.
Swimwear- stains, rips, multiple piece sets often missing pieces, higher potential for security tags than other categories.
Jewelry- scratches, missing pieces, missing stones, missing packaging.
Bedding/sheets- stains, rips, missing pieces, missing packaging.
Health and beauty- missing or damaged packaging