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More and more consumers are returning items to large retailers due to the volume of online shopping taking place (eCommerce brings a 30% return rate) as well as more lenient return policies. In fact, people like The Krazy Coupon Lady have written articles about Target’s return policies and how easy it may be to return something there. As a result, Target’s relaxed return policy can be a big opportunity for business buyers and resellers of returned and excess stock!
Much of this merchandise– instead of going back on primary shelves – is sold in bulk including baby items, toys, footwear, handbags, women’s and men’s apparel, home goods, and even patio furniture. So if you’re looking to purchase Target returns by the pallet or truckload, you’re in luck! Target offers these returns via their private liquidation site on B-Stock. On Target Auction Liquidations, liquidation inventory is sold directly to small business buyers and resellers (versus using a third-party liquidator).
Learn more about Target returns and how registered buyers can secure Target returns and overstock by the pallet or truckload!
Target Auction Liquidations will show you what bulk purchases are currently available. For instance, if Target currently has a large lot of items it is liquidating, it will likely be sold by the truckload. You will be able to see what types of items, like clothing, electronics, furniture, rugs, sporting goods, pet supplies, and baby products are included in the auction lot by reading the manifest. The size of the auction lot up for bid can range from a pallet, a half truckload to a truckload, or even a small quantity (like one pallet) of kitchenware or children’s apparel.
Buying liquidation straight from the retailer’s online auction will help ensure you get high-quality merchandise free of product poaching or markups from a third-party liquidator. This will help you turn a higher profit margin. Plus, you’re getting great products from a retailer that customers know and love.
Next, you will want to know what steps to take in order to buy Target returns and other liquidation inventory:
To buy inventory from Target Liquidation Auctions, you will need a resale certificate which allows you, the reseller, to purchase the goods tax-free (read more on resale certificates). After you have your resale certificate, you’ll need to apply to the Target Marketplace.
You want to shop for the liquidation inventory that you know you can resell—so take a look at your customer base. If your clientele is interested in home and garden inventory, you probably don’t want to purchase a whole truckload of baby items. You can find the following inventory types on Target:
Customer returns or overstock each have unique considerations. Thanks to that relaxed return policy we mentioned, you can often find unopened or unused inventory mixed into customer returns. (Say a shopper purchased two of the same size and kept the best fitting one, only to return the other unworn item.) And when it comes to overstock, you will frequently find Target liquidating their excess or unsold inventory. This is either due to over-purchasing or seasonal changes in inventory. Either way, retailers must clear out the warehouse and make way for new inventory!
A truckload has 24 pallets and an LTL (less than truckload) can be anywhere from one to 10 or 12. You get more bang for your buck with a truckload auction when you take into account shipping costs. However, you will want to consider the amount of merchandise you’re able to receive, sort through, and sell. It may make more sense for your resale business to get through smaller batches of inventory from LTL auctions until you have a good handle on the process.
Your calculations should take into account the inventory condition, quantity, MSRP, estimated shipping costs, and what the going resale price is. That way, you can place your max bid with peace of mind that you won’t simply be breaking even.
If buying Target liquidation sounds like the right move for your business, head over to Target Auction Liquidations to register. B-Stock is the world’s largest online marketplace for returned, excess, and other liquidation merchandise. It’s the most cost-effective way to purchase returned items by the pallet or truckload directly from top retailers like Target and others!