Where Can I Buy Target Merchandise in Bulk?

If you’re looking for a second stream of income, or even to change your career altogether, buying and reselling different types of merchandise for a profit can be a good option for you. Many people like you take the step of setting up their own business and becoming their own bosses.

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When it comes to sourcing merchandise you can resell, you have several options. You could go hunting for deals at your local retailer, planning to resell with a markup online. You could go bigger and order in bulk from a wholesale supplier, but you could also try a path that wasn’t really popular not so long ago. You could look at customer returns, and other liquidated merchandise.

Customer returns are an increasingly popular choice when it comes to finding merchandise to resell. But what is customer return merchandise, where do you find it, and why could it be good for your business? What does a retailer like Target do with customer returns, and can you buy these items from Target?

Customer returns are items returned by buyers for various reasons. The condition in which the merchandise is returned varies, from broken to still being in original packaging.

With the volume of sales that a retailer of Target’s size has, it is inevitable that they will have to deal with a lot of customer returns, especially from online sales. Some 30 percent of online purchases find their way back to the retailer. Retailers look for partners capable of buying in large volumes to resell these customer returns as quickly as possible. Wholesalers and liquidators are the likely choice. Direct Liquidation has the capacity to handle large amounts of customer returns and pass on the savings to its customers. 

The greatest advantage customer returns have over other merchandise is the price. It can be bought for pennies on the dollar if you know where to look. Liquidation merchandise doesn’t have to mean scrap, you can find quality if you know where to look.

Target Customer Returns

The name says it all. Customer returns are items that have been previously sold, either in one of Target’s physical stores or online, and that customers have returned, for a variety of reasons. In order to attract more buyers, retailers such as Target offer significant advantages as well as generous return policies and warranties. It is not unusual for buyers to first check whether a retailer has a returns policy page on their website or any information on customer returns before even buying anything.

Some may use these generous return policies to their advantage, while others return the products for a number of other reasons. Statistics show that some 23 percent of buyers receive the wrong item. A product may also be damaged during transport, or look different in real life from what the customer saw in the photos. Sometimes, products are even returned unopened in their original packaging.

You want to offer merchandise in large volumes, and worry about stocking up your business for a longer period or having products in stock throughout the year. Are customer returns a large enough source? This is an important question, especially with the year 2020 being what it is, with COVID-19 disrupting numerous industries.

However, there was a silver lining to that cloud, at least for Target and similar retailers. With governments restricting movement and telling us to stay home as much as possible, online sales rocketed. In the second quarter alone, Target saw its digital sales jumping 195 percent. Quarterly sales grew to $22.7 billion, up 24 percent from $18.2 billion in the corresponding quarter last year. If you look at that quarter alone you will see that 30 percent of all online sales get returned to the retailer.  Basically, the throughput Target has on a daily basis is almost a guarantee that you will have customer returns up for grabs to stock your business.

Customer returns can become a burden for a retailer. They are already taking a financial hit on a product they have received back because they usually do not sell it again, at least not through their normal retail channels. In addition, these items take up storage space that could be used for brand new merchandise coming in.

The goal for the retailer is to get at least some value from this merchandise. That’s why some items go through refurbishment processes, some are reviewed and repackaged, while others are simply bunched up together into pallets and sold in bulk, by the pallet or a truckload.

This is why Target works with companies that are capable of handling large amounts of customer returned merchandise. Direct Liquidation buys merchandise directly from Target and then sells it through its marketplace to other customers that prefer buying in smaller lots or pallets and are not capable of buying by several truckloads.

How is Buying from a Liquidator Cheaper Than Buying from the Retailer?

Every business has to make a profit in some way, and we don’t shy away from that. But we at Direct Liquidation are capable of buying large amounts of merchandise from Target and other large retailers. In order to empty their storage spaces quickly, retailers sell in large amounts that smaller buyers are not capable of handling. This is why buying through our marketplace becomes convenient.

The amounts we buy are divided into lots that are then offered to our customers. We break down the bulk into smaller amounts that are more accessible. And when you look at the price, you are still well below the wholesale value of each product.

Merchandise Conditions

Target is a huge retailer and has a reputation to look after. Likewise, we at Direct Liquidation are here to provide you with quality service. While a significant portion of merchandise going through our channels is used, there are ways you can ensure you are getting the quality you are looking for.

Most lots come with a manifest that shows you the contents of the lot as well as the quantity and the condition. Some products, as noted earlier, are refurbished (these will come at a higher price point and are sold ‘as new’), some are reviewed and passed as unopened and basically new, while others might have blemishes or are not working at all. What we want you to focus on is the details and this grading system. If it is sold ‘as new’ that means it is of high quality. But it comes at a higher price point.

If you are willing to take a risk, you may want to look at the other end of the spectrum, the most inexpensive products on offer: untested customer returns. These pallets may be opened only to check whether they contain everything that was written in the manifest provided by the retailer.

These pallets are the most affordable and can contain used non-functioning products. But some hidden gems could sneak in, as neither the retailer nor we cherry-pick the pallets. These hidden gems, in the form of a product returned in its original packaging, could be worth more on resale than the whole lot you bought. But the level of risk is higher.

The merchandise bought from Target comes in a variety of categories, from clothing to toys and even electronics. Some of these products, especially electronics, can be listed as tested-not working. A person with the skills required can buy such pallets at low prices and use a single unit as a parts donor for other items to increase their value. But that is all down to the buyer and how much work they are willing to put into lifting the value of the products they buy from us.

So How do You Buy from Direct Liquidation?

The purchasing process is fairly similar to any other online marketplace. You can register for a free account if you want to make a purchase, and the rest is browsing, reviewing and buying. Bear in mind the tips we have provided, make sure you go through all the available information on each listing before making your purchase.

Once you are satisfied with your choice, you have two options: either buying immediately or maybe taking your chances in a live auction and bidding. Whatever your choice, once you make the purchase it is up to you to either arrange the shipping yourself or maybe check out the rates our partners offer.

How can Customer Returns Help my Business?

Customer returns are cheaper and can open up the potential for a significant profit. The prices are well below wholesale, which gives you room to stay competitive in any market.

Make sure you don’t go over your budget. Check the prices of each pallet and search for retail prices of each unit within the pallet to calculate your potential earnings. This will also give you an indication as to how much you can pay for a pallet to give yourself the best chance of making a profit.

Also, once you do buy and receive your pallet, never list it online without reviewing your products, especially if you’ve ordered something that was not tested by the liquidator. Test everything, go over everything and when listing your products provide as much information as possible, including photos, details, potential flaws while highlighting the advantages. The hard work you put in to secure the products you offer are the best they can be will bring rewards.

Also, make sure you review the market you are doing business in. Set your prices accordingly and if possible, just below those of your competition. This is the main idea behind buying customer returns: securing quality merchandise for the lowest price in order to have enough room to set your prices lower than the competition and still make a profit.

If you put the work in, this customer returned merchandise has the potential to provide you with the best profit margins and reasonable profit.

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