The Different Categories of Wholesale Electronics: Untested Customer Returns, Refurbished, Reconditioned and Tested Not Working – A Breakdown of What’s What

The world of wholesale electronics may sound simple when you first think about it. After all, it’s selling items that aren’t brand new to someone who can give the product more life, right? Though that may be the basic philosophy of liquidation, there is a lot more to it than meets the eye.

Typically, when you look at the different companies out there that operate as electronic wholesale liquidation companies, they focus on one of four different types of products: untested customer returns, refurbished, reconditioned and tested not working.

Knowing the differences between these product types can help customers make the right purchasing decisions.

Untested Customer Returns: What Sets Them Apart

Some types of liquidation pallets that electronic liquidation companies will deal with are customer returns. The world of customer returns liquidation is quite large, and products will come back with varying degrees of quality.

In general, when inventory is listed as an untested customer return, it will mean that the customer returned the item for one reason or another. So, with a customer return, you will know the item was purchased and may have been opened.

These items may have no packaging. They may not have specific parts, and they may not even work. They have not been tested, nor have they been repaired in any way. With this liquidation inventory, however, you can typically expect about 75% of the items to be in working order and can make a great profit on those items.

Refurbished Items: What Does This Mean Exactly?

You will often see refurbished electronics when shopping on the internet and many people will specifically look for refurbished inventory. This is why refurbished liquidation pallets are so popular.

When you purchase electronic liquidation inventory that is refurbished, you will know that they have been professionally restored to like-new condition. They have also been tested and work just as a new product would work.

On top of that, refurbished items are also given a grade of A, B, C, etc. based on their cosmetic condition. This means that they may not look new, but they will perform like new. With these items, you can expect to pay more for them, but you can sell them for more, as well.

Reconditioned Items: How are They Different?

You will also find liquidation pallets that are reconditioned. Though some people will use the terms “refurbished” and “reconditioned” interchangeably when talking about their liquidation inventory, those who are “in the know”, realize that these terms are describing two different types of products. Where a refurbished item has typically been a customer return that has been expertly restored, a reconditioned item is different.

You may be familiar with the concept that businesses, for instance, will provide their employees with different types of electronics, such as a laptop or tablet computer. After a certain amount of time, like a year, the employee will turn that item in and get a new item. This returned item will be the item that is reconditioned.

During a reconditioning, parts of the item are updated or replaced and repairs are often not done. Generally, the original factories will do the reconditioning, but it is also possible that you will find electronic liquidation products that have been reconditioned by the reseller.

Tested Not Working: Why Would Someone Buy These Items?

Finally, you will find that you can buy liquidation pallets that are labeled as “tested not working”. Many people will wonder why people buy items that have been tested and have been found not to work. One reason a buyer would purchase electronic liquidation products that aren’t working is that they are very inexpensive. Once they buy these items, they can use the parts to fix other items that they can sell for a great profit.

Another option, when buying these electronic liquidation products that aren’t working is the buyers can attempt to fix the items themselves. This could lead to a huge profit. Now that you know a bit about the different types of liquidation pallets often found when seeking out electronics, you will be able to make a better decision about what type of item is right for your needs.

Whether or not you are new to the wholesale liquidation business and looking at ways to make a profit, or you are simply interested in the way liquidation works, this knowledge could be very beneficial to you in the future.

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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.