Posted by Paul Foxson on May 31, 2014
To be very frank with you, it would be very ris
ky to buy customer return merchandise. If you are a smart small business, you would do well by going for shelf pulls, closeouts or overstock goods. Why? We will go into that shortly and explain the reasons, but before that, let me elaborate on the two.
What Is Customer Return Merchandise?
As the name implies, these products have been returned by the buyers. Always ask the reason for such returns. Yes, sometimes it’s possible that the wrong size of clothing or shoes was shipped by mistake, but often, that’s not the reason. The customer returned it because for some reason, he didn’t like it. Now, would you like to sell something that the original buyer didn’t like? Chances are, it would be returned again. Would be able to handle all these returns?
Also, much of the customer return merchandise is distressed, simply because the buyer has already tried them. Which means that, a lot of this inventory would be really bad. They could be soiled, they’ll probably smell of perfume, and worse still, might have human odor. Yuk!
Of course, you’ll not want to wear any of this yourself. We don’t feel proud having somebody else’s lives in our closets. So how can you expect that your clients would like to have any of this?
It would be a huge risk if you ended up with boxes of such products. You are sure to have a tough time trying to convince your own buyers.
What Is Shelf Pull/Closeout/Overstock Merchandise?
There is a big difference between shelf pulls or closeouts merchandise and customer return goods. Department stores and specialty shops here just moved their excess merchandise and packed them up. These goods were moved to make room for new stock. In other words, customers never bought them, and thus there was no rejection.
But it’s good to remember here, that there can be a small percentage of distressed merchandise here as well. That’s because, some people would surely have tried them in the fitting rooms. But typically, this is only about 5% or less of the entire liquidation inventory on offer.
This means that if you are buying closeouts or shelf pulls, then you are running very little risk, as compared to customer return merchandise, which will surely be more distressed.
Every smart business interested in liquidation wholesale, will always opt for shelf pulls. It makes sense.
The risk is even less for you if you source your inventory from Fox Liquidation. We look at the items individually, both clothing and accessories, to identify goods fit for resale. This means, you’ll get shelf pulls, seasonal shelf pulls that will actually sell. There are hardly any soiled or damaged goods in the lots. You’ll always get the very best inventory available.
And if you look closely at the manifest, which you should always do, then you’ll know the entire details – the brand, color, size, retail price and your cost, and such other details in the lot. This gives you a clear idea of what liquidation merchandise you are getting.