Top 10 Decision Making Factors When Buying Customer Returns

Customer returns are an excellent product source for an eBay business, online store or even discount store. However, they will only be beneficial if you understand what to expect when purchasing these returns.

If you are new to customer returns liquidations and don’t yet know about the most important deciding factors that will have an effect on your business, you’re on the right page. If you’re in the liquidation business and want to make it big, here are the 10 decision making factors that you should consider when buying used products.

Know What You Are Getting Into

Before you step into this business, you should know exactly what customer returns are and what kinds you can expect to encounter when you begin purchasing them. Customer returns are products that a customer has returned because they didn’t like the product or because they found something is wrong with it.

There is a wide variety of customer returns that are available in the market today, ranging from toy cars to clothes and all the way to boots. You will find that most returned products are damaged goods that can be made profitable when sold under correct circumstances.

Look For Good Suppliers

There are many types of customer returns suppliers, but not all of them are worth your time. Therefore, find a few of the best and strike a business deal with them. When looking for suppliers, who can be manufacturers, distributors, importers or auctioneers, make sure that they are reliable and have a good reputation in the market. The kind of suppliers that you opt for will depend entirely on the needs of your business and what you expect to get in return. So be sure to choose wisely.

Buy According to Product Demand

The number of products that you can sell at the end of the day will depend on the demand of the products. So, it is important that you survey, research and analyze your target market and buy the things that they are looking for.

For example, if your customers are mainly interested in electronics and high-tech gadgets, it would be a waste of time presenting them with clothes and footwear. You will not be able to be successful with your customer returns merchandise until and unless it is in demand by your customers and targeted market.

Decide On the Type of Product

Once you know what people are looking for, decide on the products that you will be selling in your business. Some types of products that you can start selling are clothing, home decor, school and office supplies, cosmetics and other general merchandise.

Check Out the Quality of the Product

When buying customer returns you must ensure that you check their quality. If you are dealing with individual customer returns, ask the supplier why the customer returned the product in the first place. By checking the quality beforehand, you won’t be surprised with a defect or damage that has been present from the very beginning. So always look for suppliers who can provide you with good quality used products because these can be sold off quickly.

Compare Prices of Products

When you know the products that you would like to buy and have found good suppliers to buy from, it is time for you to compare their prices and find out if you are getting the best deal. First of all, before you buy any customer return product, check its original price and then decide if the current product is worth the price you are paying. The final cost of the used product will depend on a variety of factors, such as your purchase’s condition, availability, and brand.

Think of the Effort, Money and Time Spent

Prior to buying the product, think about the effort, time and money that you will be spending on its repair if required at all. However, most customer returns items will need to be fixed in one way or the other, so you must consider the total cost and labor that it will require. If you think that the overall cost will be more than that of the profit that you will gain when you sell the products, it would be better to keep the item aside and consider something else.

Time Your Purchases Carefully

The best time to buy customer returns is after the holiday season when stores are overwhelmed by large returns. As this is the time when you will be able to get your hands on bulk used items, it would be best for you to hold onto your money for a little while longer. However, if you are buying from an indirect source, be very careful as the products may not be what you expected.

Buy Wholesale Products by Pallets

Instead of buying bulk customer return products in boxes, consider the option of buying wholesale product pallets as these are always a lot more advantageous. The biggest benefit of buying by pallets is that you get discounts and save up on the costs when your quantity is more. Many of the successful businesses which thrive on customer returns have found that they make a lot of money when they buy items in lots or in pallets.

Sell Using a Variety of Channels

When running a business of customer returns products, it would be better to choose more than one channel for selling them. Even though it is not mandatory, you need to understand that using the same channel like an online store or discount store will only limit your possibilities.

On the other hand, when you have a variety of channels to sell your products on, you give your business the chance to reach out to a larger number of people. So, consider all of these factors before you buy customer returns and start your own business. That way you will be successful and able to make a name for yourself.

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