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CUSTOMER RETURNS

 
What are customer returns?  Customer returns encompass a relatively broad spectrum of merchandise including products actually purchased and then returned by customers, in-store damages, marked out of stock products, and partial case packs.  Most of these products are sold by the truckload from various points around the country.  The products are either sold as a percentage of the cost of retail or by the pallet.  When sold by the pallet, product is usually stacked five to six feet high on a pallet and shrink wrapped.  Quite often there is no manifest listing the various products.  Usually you won't know what you are getting until you unwrap the pallet.

What quality can I expect?
  By definition, customer return loads may be less than perfect merchandise.  Product may be slightly damaged, missing some small elements, discolored, in a box that is damaged, or less than perfect in some other way.  On the other hand, you usually will get substantial quantities of the product that are like new.  A small portion of the merchandise (usually less than 10 percent) may have to be discarded. 

 

What is the value?  As a rule of thumb, you generally will be paying somewhere between 8 to 12 percent of the retail selling price for products you receive.  Obviously, even with a small throw away percentage, and with some of the product slightly imperfect, this is still a tremendous value.

 

Are there restrictions?  Yes! In most cases, product must be delabeled in some manner.  Product cannot be advertised as having originated with the retailers.

 

 

 

Major discount store returns:  Sold by pallet from locations around the country. Five to six foot high shrink-wrapped pallets loaded with bargains! This is one of the premiere discounters in the country. Note: Delabeling required.  Price $345.00 per pallet.

 

Discount store clothing:  Sold at 12% of retail or at $1.90 per unit, depending on the retailer.  FOB Minneapolis, Minnesota.

 

Mail order returns:  From major mail order company.  Sold at 24% of cost.  Consists of unique gift and household items, clothing, audio video, books, games, and other interesting products.  FOB Minneapolis, Minnesota.

 

Brand name clothing returns:  From a 600 store national chain selling brand names for less.  Sold at 12% of retail (approximately $1.80 per piece).  FOB Minneapolis, MN.

 

Wholesale club returns:  Major national wholesale club returns including food, electronics, clothing, and general merchandise.  Various sized loads.  Very clean goods.  Sold at 32% of retail, delivered.

 

Department store returns:  From the preeminent department store in the Midwest.  Beautiful brand name and designer products.  Both clothing and hardlines.  Sold at 8% of retail.  FOB Chicago, IL.  Some restrictions apply.

 

Sporting goods returns:  A major west coast sporting goods company provides this merchandise. They load $100,000.00 at retail in the truck. Your cost is $6,000.00 FOB Fontana, CA. Note: Merchandise must be sold east of the Mississippi River or by special approval.

 

Major chain store clothing and hardlines:  This primarily west coast chain will floor load a 53-foot truck from floor to ceiling with clothing, shoes, housewares, and other hardlines. Usually 15,000 to 17,000 pieces are on a load -- and packed full! Your cost is $25,500.00 per truckload. FOB Texas, Utah, and California. Note: Delabeling required.

 

 

More Department store returns:  Consisting of clothing, shoes, hardlines, and all other products.  Sold for export only.  Hardlines are sold at 18% of cost, domestics are sold at 20% of cost, shoes at 22% of cost, and clothing at 15% of cost.  FOB Findlay, Ohio.

 


Please note:  Intentionally we have not revealed the names of retailers or brands we represent, which is at their request.  We will provide the names to you at your request or inquiry.