Department Store Returns
Department store returns:
Returns can be classified two main classes.
1. Raw Returns: Merchandise that has been returned to the store where it was purchased.Raw returns have not been checked or tested.. The customer was not satisfied Usually this is reason for a retailer to accept a return. Raw Return loads have some product like new.Other items in the same load may be trash. Use caution when buying returns. Their is potential for big profit margins when purchaseing truckloads and pallets of customer returns. Customer returns cost between 4% - 35% of the wholesale cost.(NOT RETAIL)
2. Salvage:
Salvage returns have been looked at by a repairman. The most common type of salvage returns are electronics.Some electronics returned lots are raw returns. When buying electronics pallets know what type of returns you are purchasing.
When purchaseing truckloads, pallets or lot size use great caution. Make sure you have calculated estimated cost of higher cost items. When you inspect the merchandise before you buy check the high cost items condition. This will give you the information to know if the lot is profitable for you. Make sure you understand what condition the liquidation merchandise. Do not start out buying truckloads of salvage electronics. Start with a pallet of general merchandise for a few hundred dollars. You need to learn the look and feel of returns. The merchandise looks new in box. Theeeir can be many problems inside that new box.