Creating value through store returns auctions
Today, consumers are making purchases faster than ever before, making returns an inevitable part of the shopping experience. Every year, billions of dollars worth of returned products find their way back to retailers, often resulting in overstock. Many of these items still have significant resale value. They may be gently used, tested but unsold, or simply returned due to buyer’s remorse. Participate in Store Returns Auctions, a unique way for resellers to take advantage of high-quality returned products at competitive prices.
For entrepreneurs and established resellers alike, store returns auctions offer a powerful opportunity to source inventory at a fraction of retail cost, and here’s how.
What is a Store Returns Auction?
Store returns auctions allow resellers to purchase returned or excess inventory through an online marketplace where they can bid on items in bulk. Products range from appliances and clothing to homewares and specialty products. These items are often returned in large quantities and can be a financial burden for retailers without effective liquidation options.
Which retailers sell store returns?
Most brands you know and love regularly offload this inventory as part of a reverse logistics strategy with top manufacturers. Amazon, Target, Walmart, Wayfair, The Home Depot, Best Buy, Lowe’s and more! Auction-based sales allow small businesses, wholesalers, exporters and resellers to purchase pallets of returned products in one go and resell them on the secondary market.
How Store Return Auctions Work
The following outlines the store returns auction process and how it benefits resellers.
- Prepare stock: After a customer returns an item, the retailer processes the item for resale. Items are inspected and sorted and then grouped into lots or pallets based on categories such as product type or condition.
- inventory: Retailers who work with recommerce platforms like B-Stock list these returns online. Typically, a detailed description of lot contents, estimated retail price, and condition of the item (e.g. “open box” or “tested working”) is provided.
- Bidding process: Resellers can search these auction listings and bid on the pallets or trucks of interest. Because this is an auction-based sale, the final purchase price varies depending on bidder competition and demand, often with low-cost inventory available to the winning bidder. Of course, it depends on the product type and condition!
- Win the Auction: If you submit the highest bid, we will secure the lot and arrange for pickup or delivery, depending on the platform and seller terms. From there, it’s up to you to list and sell your items to generate potential profits based on your reselling strategy.
Each store returns auction is unique.
Please handle all store return auctions carefully as no two lots are the same! You should also evaluate the condition of each item when you personally receive the lot. This can change the resale value (sometimes for the better and sometimes for the worse). So price your inventory accordingly and remember that it’s all about the thrill and luck of discovery! Ultimately, store returns inventory provides resellers with a variety of high-quality products suited to cost-conscious consumers looking for a good deal.
Why store returns auctions are a smart choice for resellers
Store returns auctions provide resellers with an inexpensive source of inventory, which is especially useful for those just starting out or looking to diversify their offerings. Key benefits include:
- Low initial investment: Auctions often start with low prices, allowing resellers to acquire inventory with minimal upfront costs.
- Access to high-quality products: Many of the returned items are in good condition and may even be brand new. These items can attract savvy shoppers looking for quality products at discounted prices.
- Steady supply: Returns are always inbound, ensuring a steady supply of inventory across a variety of categories. Eventually, with the latest model launches and seasonal offerings pouring in, you won’t want any more!
- Sustainability: Store return auctions help extend the life of your products by keeping usable items out of landfills. This eco-friendly approach resonates with today’s environmentally conscious consumers.
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Best Practices for Successful Store Returns Auctions
If you’re ready to dive into the world of store returns auctions, here are some best practices to maximize your investment.
- Understand product status: Review each listing carefully and note the condition description. Different sellers have different definitions of product terms. One seller’s ‘Like-New’ version may be another seller’s ‘Used-Like’ version. Understanding expressions like these can help you avoid surprises.
- Budget settings: Determine the maximum bid for each auction to avoid overspending. Consider additional costs, such as shipping or storage, if applicable.
- Stay up to date with market demands: Trends change, so it’s a good idea to keep an eye on popular categories. For example, electronics and home appliances are usually in high demand, making smart purchases for quick resale.
Notes on Sales Strategy
Think about where and how you will sell each item from your winning lot. Some items (like clothing) may sell better on Poshmark, while others (like furniture) may be better sold directly. Don’t leave your inventory sitting around too long! The goal is to recover costs and finance additional purchases.
Takeaway: A Profitable Channel for Inventory Sourcing
With the right strategy, store returns auctions can be a trusted source of affordable, quality inventory for resale. From startup resellers to established businesses, these auctions provide a way to expand operations and meet the growing demand for budget-friendly products. By connecting supply and demand, store returns auctions help resellers succeed in a competitive retail environment while giving new purpose to returned products.
Store returns auctions include a variety of products. Common categories include electronics, housewares, clothing, appliances, and furniture. Inventory often reflects the types of merchandise returned to large retailers, so there is always a variety to choose from.
Not all items are new. Product condition varies and may include new, returned unused, opened, used, etc. Each auction listing specifies the condition of the item using labels such as “tested working,” “like new,” or “scratches and dents,” giving bidders an idea of what they are purchasing.
Auction listings provide a description of the condition of each item and sometimes even testing notes. Store returns auctions involve some risk, but checking lot descriptions, seller reviews, and warranties offered on the platform will help you make an informed bid.
In store returns auctions, you bid competitively with other resellers and the final purchase price is determined by demand. Additionally, these store returns occur directly from the retailer’s warehouse. Wholesale purchases, on the other hand, often involve fixed prices per unit or lot, and transfer of goods is rarely direct. Wholesalers often purchase large liquidation lots, separate the lots, then repackage them and redistribute them into smaller lots to smaller retailers and resellers.
Shipping costs vary depending on the platform, location, and weight of the auction lot. Some sellers offer estimated shipping costs via preferred carriers, fixed-price shipping, or local pickup. Reviewing the shipping terms for each listing can help you avoid unexpected costs. Don’t forget to calculate the cost of any accessories you will need for your liftgate!
Many auction platforms handle returns and liquidated inventory. However, not all of our stock gives you direct access to it, and a lot may have to pass through several hands before reaching you. B-Stock offers powerful purchasing options across a variety of categories and most importantly, gives you direct access to our inventory so you can get the best price for your items.
Successful resellers often take a strategic approach, focusing on items that are available at the right price and have high resale demand. Essentially, you need to be a top deal hunter so you can move your inventory as quickly as possible and get your money back. Research popular categories, set competitive resale prices, and use multiple channels (e.g. eBay, Amazon, and local marketplaces) to reach a broader customer base. Additionally, refurbishing an item or bundling it with related products can increase its resale appeal.
Resellers often find creative ways to recycle or sell unusable items. You can encourage sales by bundling low-demand items with popular ones, or you can choose to donate items like some resellers do. Brick-and-mortar stores often offer different deals depending on the day of the week. If you have a less desirable item, you can promote a ‘$1 Sale Day’ to move that stock.
It is wise to set a clear returns policy for your resale business. Most liquidation inventory is sold as-is, so depending on your business model, you may choose a no-returns policy. If it is a customer service issue, we may consider a return or refund depending on the case! Ultimately, you want to establish yourself as a reputable reseller.
