Profiting from Retail Store Returns

Do you really understand what retail returns are? Unless you know what they are, where they come from, and how you can get your hands on them, you can't even begin to fathom how you can make money from them.

Retail Returns Defined

Let's start by looking at just what retail returns are. These are items that were bought through a store (either bricks and mortar or online) and then were returned to a retailer by the buyer. It could be the purchaser did not like something in particular about the item such as the color, fit, shape, etc or that there was a problem with the item such as it would not work or had a cosmetic flaw.

As soon as an item was purchased from a retailer it moved from new to used status. That means the stores cannot resell the item as new.

Where Do Retail Returns Go?

Most retail returns head out from the return bins at the store back to a warehouse for the company. As the returns stack up, the company wants to get them out of the warehouse because they are doing nothing but taking up space, which is money in the warehouse business.

So, they decide to move those items out. Generally this means they will box up pallets of returned item and sell them off as one large lot of liquidation items.

Why Retail Returns Are Good For Your Business

If a retailer is moving out a lot of the kinds of items that you usually would sell in your store, you may be able to do a great deal of profiting from the items they are selling. You see, liquidation lots of retail returns are sold at much lower than the wholesale price would be on the same items. Often you can get them even 50% cheaper than the wholesale price. If they are in great condition, you can stand to make a massive profit.

It is important to keep in mind that liquidation items may not all be perfectly good items. There is always going to be a certain percentage of waste included in the liquidation lots, items that you will not be able to sell and will be able to do nothing but give away or throw away.  Expect this, but choose your liquidation sources carefully, as all companies have different percentages of 'waste' they allow to go into their liquidation lots.

About the Author

Steve Sikes is an MBA and writes articles on wholesale and liquidation auctions and how to make a profit reselling these products. He also writes articles on financial products including insurance and credit cards. To read other articles on wholesale and liquidation auctions and making a profit buying and reselling liquidation clothing, jewelry, electronics, apparel and much more, you will want to visit <a href="http://www.WholeSale611.com">www.WholeSale611.com</a>