Merchandise Return

The National Retail Federation found for every one billion dollars in sales, the average retailer incurs $106 million in merchandise returns. Additionally, for every $100 in returned merchandise accepted, retailers lose $5.90 to return fraud. Returns rates to stores are around 8%, this jumps to around 25% for items bought online, according to Paazl.

Retailers look to salvage whatever they can on return merchandise. When possible retailers will chargeback the vendor for the return. When the return can't be charged back to the vendor, retailers look to sell it as quickly as possible so it doesn’t take up warehouse and store space. The biggest retailers sell merchandise returns to direct liquidators who then resell them. Some products are sold "as new", while others will be marked as "tested not working" or "unrepairable."

To buy return merchandise by the box load, pallet, or truckload from a Direct Liquidator, create an account, browse the list of categories, and search for individual manufacturers or products.

Returned merchandise goes to the original vendor or to direct liquidators after it is received by retailers.

A Merchandise Return Card is a payment card that the customer can use for a future transaction with the retailer. Merchandise Return Cards are given to customers for approved non-receipted returns. Also, a Merchandise Return Card is given to customers if any portion of their sales transaction was purchased with a Merchandise Return Card.