When it comes to investing in salvage goods or customer returns, a lot of individuals are confused whether they should buy these items or not. But before we get into the pros and cons of buying salvage goods, let’s get an understanding of what these goods actually are.
Basically, customer returns involve merchandise that is purchased but returned after a certain period of use. Different stores, shops and retailers have a variety of different customer returns and liquidation product policies that have an impact on the category and condition of items that are seen in varying loads. It is important to note that customer returns haven’t been checked for functionality before entering the market.
What to Expect From Your Merchandise
If you’ve invested in salvage goods, then you should be fully prepared to get items that are somewhat in a defective state, having certain blemishes etc. It is very common for salvage goods to lack in certain components like controls and important documentation. The packaging of salvage goods isn’t appealing and is usually damaged. Salvage goods aren’t necessarily in perfect working condition, which means that some features may be missing. Customer returns also have defaced barcodes along with obvious signs of customer handling that may affect the look and functionality of these products.
While investing in customer returns and reselling these items for profit is one of the proven concepts of earning extra cash through liquidation products sales, businesses should be fully aware of the risk involved in buying salvage goods.
The Position of the Wholesale Supplier
If you’re buying salvage goods from a wholesale supplier, then you should know that most suppliers have a no-return policy for salvage goods with the sale of customer returns considered final and the merchandise being sold as “As-Is” products.
Is It The Thing For You?
Irrespective of your experience in the field of liquidation merchandise, you should understand that the business of reselling customer returns doesn’t work the same for all. Analyze your business, your sales channels etc. to know more about the potential of profit and loss.
As far as making maximum profits from salvage goods is concerned, processing, checking, and researching the pricing trends of these goods is extremely important before putting them on sale.
Will the Risk Be Bearable?
Ask yourself if you can handle the risk involved with the purchase of salvage merchandise. Yes, there are chances that your products may not sell at profitable rates, especially in the beginning.
As most goods aren’t in a retail-ready state, they may require extra work, time and money in order to be prepared for resale.
The Final Word
At the end of the day, reselling salvage goods can be a profitable business if you have the gut to take the chance and use proper channels and strategies to market and sell your profits at desirable rates. As they say, NO RISK, NO GAIN!