So you’re
thinking about taking the plunge on a customer return lot? You found a lot that
looks great but you are not quite sure what to expect so today we are going to
go over the basics of customer return lots the good, bad and ugly. So why would anyone want a customer return
condition lot in the first place? Well a big reason is price customer return
lots can be up to 95% off list price. So what this means to a potential buyer is
a significant opportunity for profit. Now the downside customer return lots
have a high amount of damages or defects so what are these and what can you
expect? People return merchandise for various reasons, many simply because the
item does not fit or the color. Some returns are far more questionable, maybe
the piece of clothing was worn multiple times or perhaps there is a rip or
stain a part missing or a broken part. Before you purchase a customer return condition
lot you will have to accept the fact that some items will be damaged beyond
repair it can and will happen and there is no avoiding it. The goal when
processing a customer return condition lot is to maximize your sellable items
and minimize the losses. When you receive your order sort your merchandise into
5 distinct categories of condition:
New with tags– These are items equivalent to shelf
pull condition merchandise excellent condition no damages or defects with
tags.
New without tags– These are items that with the
exception of missing tags are in excellent condition, many retail websites like
eBay offer merchandise as new without tags while they do not command the
premium of new with tags they are still quite profitable.
New with defects– items with some condition issues for
example shoes with signs of wear or a shirt with a stain or perhaps a small
hole. Don’t think you can sell an item with a defect? Well guess again, the key
with new with defect is to clearly present the damage close up photos of the
damage and a detailed description of the condition issue.
Salvage– these are far more serious condition
issues examples such as a purse with a broken strap a ripped jacket or a vacuum
with a broken canister. These items need to be carefully evaluated to determine
if it is cost effective to have the item repaired or replace the part. Let’s
look at that vacuum with the broken canister for a moment. Have you ever had to
replace a part for your vacuum before? Ever notice how the replacement part costs
almost as much as a new vacuum? Why not consider selling that vacuum not as
damaged goods but as new replacement parts. What about that ripped purse what
is the list price of the item? A few hundred dollar handbag retail? Then maybe
it’s worth having it repaired by a tailor or someone that works in leather
goods. Good with a needle and thread? Then do it yourself but be sure to list
the repair when you sell it to avoid disappointing that potential
customer.
Trash– Goods beyond salvage or repair the
worst of the worst: ripped, dented and broken beyond repair. What to do with
these? Well beyond bagging them up and trashing, there are a few options for
the very dedicated entrepreneur. Have some good branded shirts with nice
buttons? Cut them off bag them and sell as replacement buttons. Believe it or
not there is a market for fabric scraps you may have to do some digging to find
a buyer in your area but there is a demand for cotton, wool, leather and other
various textile scraps and remnants these companies are usually buying by
weight so this should be your absolute last resort. Have some jewelry beyond
repair? There is a strong demand for these items for arts and crafts
enthusiasts making their own jewelry create a bulk lot and sell them on eBay.
The most
important thing to take away from this article is no matter how good, bad or
ugly the condition of an item is, you can make money on virtually anything just
be prepared to put in that work to maximize your returns.