Closeouts and Customer Returns, Are They Worth Your Time?

When running a resale business either through your own website or through other selling platforms like eBay, sourcing quality merchandise for the lowest possible price is one of the keys to your success.

While browsing through offerings online, you are very likely to find sellers offering closeout merchandise for sale or even customer returns. You don’t need to run away from these products. These can actually be a good chance for you to secure some branded merchandise of high quality at prices that go well below wholesale.

Here are a few pointers that will help you understand how and why closeout merchandise and customer returns could increase your profits and bring your resale game to a new level.

What are Closeouts and Customer Returns?

There are a number of reasons why goods end up being sold through something called a closeout. Stores usually offer closeouts when they are either closing, relocating or simply need to free up space on their shelves for new merchandise coming in. Replacing old goods with new ones usually happens with seasonal merchandise or with the launch of new models, in the case of particularly electronics, or fashion.

You will find a prime example of such a sale when companies, such as Samsung, launch a new Galaxy Smartphone model, which results in a significant reduction in the price of an older model. Stores with existing stock of the older model will then offer them through a closeout.

But, as we have mentioned, products that are being replaced with newer models are not the only ones offered through a closeout. You will also find that many products on offer are labeled as customer returns. But don’t think that customer returns are something you should stay away from. In many cases, these can be good for your resale business.

First, you need to understand that there are several reasons for a product to be returned, such as a wrong size ordered online, or a product not matching the description on the website. It also happens that the companies themselves make mistakes sometimes and ship the wrong product or the wrong size.

Many of these reasons are connected to buying products online as customers can’t really try the product before it arrives. This results in at least 30 percent of such products being returned.

But as a resale business owner, you are more concerned about making closeout merchandise and customer returns work for you. So, what are the advantages in these products that could propel your business to a higher level?

What are the Benefits of Buying Customer Returns?

The biggest advantage of closeout merchandise is the price, which ends up being well below wholesale. The same goes for customer returns, which you can buy in bulk or as wholesale pallets through a wholesale supplier or a liquidator. However, you need to make sure that you are buying closeout merchandise through a reliable supplier.

One of the best sources for liquidation merchandise are liquidations auctions. Liquidation auctions are quickly becoming a great way of sourcing cheap, quality merchandise for resale. Not only are they offering cheap products, but you are also receiving top service and products from top brands.

Even customer returns are reviewed, refurbished if necessary and readied for shipping. It must be said that many products get returned with packaging unopened, meaning they are still brand new, however, can’t be sold as such by retailers that end up selling them through closeouts.

In the end, it all comes down to you finding a reliable supplier, the right closeout merchandise for your business at the right price, to increase your profit margin in an increasingly competitive market.

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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.