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What happens when you return a product to Amazon or Walmart?


One of the biggest blessings of the large retail industry is the possibility of returns. If a customer is not satisfied with a product or decides that they don’t need it anymore, returning it back to the store is a piece of cake.

Such liberal return policies are offered not only by brick-and-mortar retailers like Walmart but also by e-shopping giants like Amazon. In fact, most products on Amazon come with a 15/30-day replacement or return guarantee.

It is estimated that around 10% of the products sold by retailers end up back as returns. While some of these could well be defective products, a majority of them are returned for personal reasons.

Why do people return products?

Many of these returned goods tend to be gifts. Often, people give wedding, bridal shower, or birthday gifts with receipts so that the recipient can return them for cash if they don’t like them. Similarly, last-minute issues such as relationship break-ups, late deliveries, change of plans etc. can cause customers to return their purchases. For instance after making heavy discounts on Black Friday deals, people tend to sell those products at normal rates after the sale season ends.

The important thing here, therefore, is that returned goods doesn’t always mean defective goods. Majority of these returned items are in perfect condition and sometimes even sport their original packaging and tags.

At first glance, it seems like an awful waste, doesn’t it? Considering that almost USD 250 billion worth of goods are returned every year, you might just be wondering: what do the companies do with these goods?

What happens to returned goods?

There are several ways of dealing with returned goods. Defective goods are, of course, either returned to the manufacturers or discarded. Perishable items that cannot be stored for too long are often donated to charities by the large retailers.

However, goods that are in perfect condition, do not go back on the shelf as people commonly assume. Also, these goods cannot be kept in storage for long by large retailers due to space constraints and the cost associated with that.

Therefore, a majority of the goods that are in perfect condition are sent to specialized companies called wholesale liquidators.

A wholesale liquidator is a company that purchases returned goods in bulk from large retailers like Walmart and Amazon. These are specialized companies that offer to “liquidate” goods which basically means that they allow retailers to free up the money that’s stuck with these items.

This is basically how the process works:

  1. Customer returns a product to the retailer
  2. The returned product is shipped back to the retailer’s central warehouse
  3. At these warehouses, the goods are sorted into different “lots”
  4. For instance, vacuum cleaners of different brands will go into one lot, baby products of different kinds will go into one lot etc.
  5. These lots make it easier to classify and store the goods
  6. Enter: Wholesale liquidation companies
  7. A wholesale liquidator will purchase these goods (or lots) in bulk from the retailer
  8. Since all of these goods have cost them cash, the liquidator is happy to sell them off and free up the cash that’s stuck with these items
  9. Wholesale liquidator pays the retailer, takes charge of the goods, and ships them to their own warehouse

Now, you might just be wondering: what do these wholesale liquidators do with these goods after all? This is where the real benefit lies for you as the consumer.

What do wholesale liquidators actually do?

Wholesale liquidators like Quicklotz are great news for consumers especially those who operate a small business or wish to earn money at home by selling through websites like eBay.

Basically, as discussed earlier, wholesale liquidators pick up returned goods in bulk from retailers. These goods come packaged as “return lots” depending on the specific category of the product.

Now, after purchasing these goods from retailers, wholesale liquidation companies auction or sell these lots on their websites. And thanks to the discounted purchasing price, these companies can offer whopping discounts to consumers.

You may wonder how big exactly are these discounts. Consider this example: Imagine an electronic appliances and gadgets lot that contains products such as power tools, small household gadgets, and even Christmas lights. These goods are collectively worth about $8000. However, through wholesale liquidation companies like Quicklotz, you can get these products at a cost of about $2000.

Moreover, not all lots are sold at a fixed price. In fact, Quicklotz conducts auctions on its website where the minimum bid for a lot starts as low as $1.

Once you purchase these goods through a wholesale liquidator, you can have them shipped anywhere in the United States at a nominal cost. Moreover, thanks to perks like a dedicated customer support and order tracking, purchasing returns lots from wholesale liquidation companies is literally as convenient as your regular online shopping. Many of these wholesale liquidation companies also welcome you to visit their warehouse and browse their lots before deciding to purchase.

Well, there you go: now you really know the secret of what happens to goods that are returned to Walmart and Amazon. Whats even better is the fact that you can literally take advantage of these goods to kickstart your business and earn great profits.

All you need to do is check out the website of a large wholesale liquidation company like Quicklotz to see how the entire process works.

Wholesale liquidation is a great business concept that allows retailers to cut their losses from returned goods. Simultaneously, it also allows consumers to purchase high-quality returned goods at a fraction of their original price.

The question of “what happens to returned goods” is a fairly common one among people. Now that you know the secret, go ahead and share this article with your friends!

Also read: How to make Career in Blogging

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