First of all, let’s get clear on the terminology related to this kind of stock. There are various types of stock that I would put in these categories:
- Bankrupt Stocks The name says it all, Bankrupt stock is straight from the stores and often straight off the shelf and ready to sell Brand New. Wicked Wholesale often sell Bankrupt stock from major chains as and when the stock opporunities arise.
- Clearance stock/overstock. These are goods that can’t be sold as planned, which business owners simply want to get rid of to clear shelf space and improve cash flow to order new stock. Again, this is usually brand new stock, in original packaging and can come with or without price tags, depending on the stock type and whether it was displayed in a retail shop or stored in a warehouse.
- Customer returns. These are simply products customers have returned for various reasons – they didn’t like the colour, model, the item was defective or for whatever reason they simply used their statutory rights to return goods within 14 days of purchase.
While liquidation, clearance and overstock goods are usually brand new and come in original packaging, customer returns are generally classed as used goods and can come in various conditions:
- Tested & working. This means that the return has been tested and the item is in working condition. Boxes will most likely be opened and have some signs of use.
- Un-tested. Stock like this means it hasn’t been tested so you can’t know if products are in working condition or not. In most cases, this is faulty/damaged stock that can only be re-sold as parts OR as used goods if you can fix the problem.
- New, boxed & un-opened. This means that product is still in its original, un-opened packaging. Sometimes boxes themselves can have some slight signs of wear (like scratches etc.) but in general, this stock is like brand new and usually sells for almost the same price as wholesale.
Many companies will use their own grading system, for example Grade A stock, Grade B stock etc., with an explanation on what each grade means. The important thing here is to understand that NOT ALL customer return goods are the same and you have to be very careful when ordering such stock to avoid the disappointment of receiving items that cant’ be re-sold.