Does Walmart Resell Their Customer Returns?

Last Updated: March 7th, 2020

Finding the right merchandise to resell through your online channels is pretty much half the road to success. If you can provide quality items at an affordable price you’re giving yourself the best shot at running a sustainable operation. There are some items one can look to buy in order to ensure quality, like closeout or overstock merchandise that is basically new and unused. However, due to the condition of this merchandise, it is often priced higher than the rest of wholesale merchandise. As a result, your profit margin on resale is rather slim. This may make you question whether running the business with a low profit is actually worth the time and effort you put in.

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Another road to go down is to look for deals with retailers who have their branded products to sell, but again finding the right sources is all that matters. Wholesalers often snap up all the merchandise that is offloaded by the retailers and then mark it up on resale. With the wholesalers’ markup, it is almost impossible to compete in an online marketplace where prices of single items are bordering with wholesale.

So what do you do? It is a matter of finding that sweet spot, the merchandise that doesn’t come at a high price point, and the source that will sell the merchandise to you at a reasonable price.

Finding the Right Merchandise

Closeouts and overstock don’t always have to be the only options if you are looking for quality merchandise. Retailers such as Walmart have a certain reputation to look after and the merchandise they sell comes with a certain quality that is held in high regard by its customers. With the amount of merchandise sold by Walmart, it is not unusual that some of it get returned. In fact, around 30 percent of sales made online are returned for various reasons. You may find that a product has been shipped in the wrong size, or color or that the customer expected the item to look different in real life. Sometimes the items get slightly damaged in transportation, maybe the packaging gets damaged and the customer returns the product without even opening it. There are also cases of customers trying out the product for a certain period and returning it, all under the return policy.

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Why would you look at such merchandise? Well, Walmart in its own right stands as a certain quality guarantee. And some items basically are returned unopened and are still brand new. This merchandise is sold at a huge discount as the retailer looks to offload such merchandise and make as much profit from it as possible. It will also free up space in the warehouse for new stock.

Now that you know that Walmart customer returns are the merchandise to look at, you have to find the right source. Since this merchandise gets liquidated, you want to know how and where Walmart liquidates its customer returns.

Finding the Source of Liquidated Walmart Customer Returns

As the largest retailer in the country, Walmart works with companies such as Direct Liquidation to serve as a platform where the retailer liquidates its customer returns.

There are several reasons for this. By working with companies such as Direct Liquidation, Walmart’s liquidations can reach a wider, global audience through Direct Liquidation’s online platform. This way, you can buy smaller quantities like pallets and smaller lots while, most importantly, keeping the price low.

In addition, Direct Liquidation lists the merchandise for sale ‘As Is’ meaning it is liquidated and shipped directly from the retailer without any cherry-picking done by the liquidation company.

With that in mind, do go through the manifest provided with each pallet of Walmart customer returns and see what’s in the pallet. As noted, with their reputation on the line, neither Walmart or Direct Liquidation want to sell scrap, even though the majority of liquidated merchandise falls under the customer returns category and is often wrongly perceived as scrap. We mentioned that often items get returned unopened with slight signs of use. With the price you pay and the potential of finding brand new items in your pallet, you may be able to get a return on your investment by selling one or two items that are brand new. This makes the risk of purchasing customer returns worth it. Even the damaged and non-functioning items, especially the electronic gadgets, can be used as spare part donors for other products that you can bring back to life.

So if your question is what happens to the Walmart customer returns and where to find it, look no further. The merchandise gets packed up and liquidated on Direct Liquidation’s online platform, so head on over there and get your pallet of Walmart customer returns.

Direct Liquidation is a goTRG company.

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Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

View Henley’s Bio on YouTube.