Customer returns: what they are in liquidation
A customer return is an item a shopper bought and then returned to the store or online seller. In the closeout trade, returns are sold by the pallet or truckload in mixed condition, from sealed and new to used, incomplete or broken, and usually untested.
Reviewed by Tyler Kober · Updated
Key takeaways
- Returns are mixed condition by nature: plan for a share that is unsellable.
- Untested means nobody checked whether it works; price it that way.
- Electronics returns carry more risk and more upside than soft goods returns.
What is a customer return?
A customer return is an item that a shopper bought and then sent or brought back. Most returns never go back on a shelf: the retailer or a returns processor sorts them, and the ones that cannot be resold as new are sold in bulk to closeout buyers by the pallet, gaylord or truckload.
How returns are sold
Returns loads differ a lot by source:
- Store returns from physical shops, often a mix of departments.
- Online returns, which can include more electronics, apparel and home goods.
- Category-sorted returns, where the processor has split electronics, home, toys and so on.
- Untouched returns, loaded straight from the returns cage without sorting.
Most returns are untested: nobody checked whether each unit works. Some are tested or graded by a processor, which raises the price and lowers the risk. A manifest may list items by line, by category or not at all.
Example
An online retailer's returns center fills a truckload with mixed home goods returns: small appliances, bedding, kitchen tools and decor. A bin store buys it, sorts it over two days, sends the clean, complete items to the bins, sets aside a few high-value appliances for a tested shelf, and pays to dispose of the broken units.
The common confusion
"Returns" does not mean "defective." Many returns are fine and came back because of size, color or a change of mind. But "returns" also does not mean "like new." The condition range is wide, which is why returns are priced well below shelf pulls, which were never sold.
Returns are the main product of reverse logistics, the process of moving goods back from customers through sorting and resale. See what happens to retail returns.
Related terms
- Shelf pull
- Reverse logistics
- Buying returns for a store: bin store supply
Frequently asked questions
What condition are customer returns in?
Anything from sealed and new to used, missing parts, cosmetically damaged or not working. Shoppers return items for many reasons, including changing their minds. The mix varies by retailer, category and season, so check the load description, the manifest if there is one, and the photos.
Can customer returns be sold as new?
Not unless each unit is verified new and sealed, and even then marketplace rules may require a different condition label. Most returns are sold as used, open box or for parts. Grade every unit before listing, using the marketplace's own condition terms.
Who buys customer returns pallets?
Bin stores, flea-market and swap-meet sellers, online resellers who test and grade, repair shops and exporters. Each buyer has a different tolerance for untested and damaged units, and a different way of turning the unsellable share into something, from parts to recycling.
Related
Send a list or manifest and we'll come back with an offer. Approved buyers see live loads, prices and manifests. Or call +1 215 278 4122.