Understanding Customer Return Inventory

Customer return inventory consists of products that were purchased and then returned to a retailer for any number of reasons -- change of mind, sizing issues, minor defects, or simply no longer being wanted.

Condition varies significantly within a single customer returns pallet. Some items may be unopened and like new, while others could be used, missing accessories, or non-functional.

Because of this variability, customer returns are usually sold unmanifested and priced accordingly lower than overstock or shelf-pull inventory of similar volume.

Successful resale of customer returns often depends on your ability to test, grade and accurately describe items before reselling -- particularly for electronics and appliances.