So... what's the catch?

[Fred_the_frog]

I was looking at a thread on here and came across this website that sells products that have been returned to shops. The products are working, it's just the packaging may be a bit tired.

So, look at this pallet for example:

http://www.marthill.co.uk/ex-cat-electrical-returns-pallet-8800002765-p-3118.html

£204.08 + VAT (£244.90 inc VAT)

Plus £55 + VAT (£66 inc VAT) for delivery.

So that's £310.90 inc VAT for the pallet. It includes 94 products with a total retail price of £1632.69. Now I know you're not going to be selling any where near retail price.

So long as you sell each item for £5 then you've made a (gross) profit (that roughly includes shipping).

It sounds too good to be true... I know you won't sell every product but surely just selling 15% of the products will get the money back. Just knock up a website and stick them on there, explaining they are ex-returns and nothing wrong with them, there must be plenty of people out there looking to get a good deal.

Thoughts?

 

[guest_12]

Its returns which mean items may be damaged or not working or broken - they were returned for a reason.

 

[Fred_the_frog]

Its returns which mean items may be damaged or not working or broken - they were returned for a reason.

They say they test the products and grade them- One grade is working the other is not working/defects.

 

[guest_12]

In general returns are basically items that have been ordered from the source company and have been sent back by the customer. There are many reasons as to why products have been returned. They could be faulty, the wrong color, box damaged and unwanted gift, not as described by the catalogue, parts missing. Or returned for the simple reason they have a guarantee and the customer have changed there mind. However all returns are untested and unchecked raw returns. Marthill sell returned stock on the understanding that the purchaser will repair, rework or recycle the product to be fit for resale. Or alternatively to be sold as a second hand product as bought from Marthill. With catalogue returns there is a large profit to be made as the items are sold at a small % of the total retail value."

That's from that site. Note the unchecked and untested bit.

I'm not saying its not possible to make money from it just saying be wary that not every item will be resellable

 

[rickyhyde89]

Almost all the pallets I'v seen on their site states that their stock grade is returns. They say that this grade is untested items that "could be faulty, the wrong color, box damaged and unwanted gift, not as described by the catalogue, parts missing." If an item is returned to a catalogue because it is the wrong colour or is an unwanted gift i can not see them selling it to a wholesaler like these when there is nothing wrong with it. At best you are going to receive something with damaged packaging but most of the item will be faulty or have parts missing. Without knowing what you are going to receive I doubt you will be able to make £100's of profit.

 

[WHARTY]

I use to work for Screwfix and we used these people for our returns. http://www.iforceauctions.com/ It wasn't all broken things we returned. Some of it was gear that couldn't be shifted in the sales or just things that needed a simple repair job.

 

[estwig]

Only one way to be sure and you'll be wondering for a very long time if you don't.

£200.00 isn't a lot to lose if it don't work out and if it does, happy days, if it doesn't then fair enough, you can move forward and put it behind you, safe in the knowledge you gave it your best shot.

 

[Paul_Rosser]

One of our clients deals with the returns for some big firms like John Lewis.

As the item has been opened and sent back they can't resell it so this firm tests them and resells using a number of different sales channels.

Seems to be a fairly standard thing for firms to do, so provided you get a money back deal if the products don't work then shouldn't be a problem.

The link posted looks like a very mixed bag of stuff, with the higher priced items being "18in UNIVERSAL SHELVING", and "Montana Dble Swivel Dr Wd Cabinet". Do you know if these are actually worth the price quoted ? And someone you could sell them to ?

This one seems to have items a bit easier to shift - http://www.marthill.co.uk/ex-cat-electrical-returns-pallet-8800006416-p-6677.html

However do some research first as they have Xtreme 18v Hammer Drill listed at £49.99, when you can pick one up in argos for £35, so resale value will be £15-£20.

Also there are no returns and no warranty on anything so you could buy a load of stuff which is damaged.

"All the merchandise sold to the purchaser there under is sold without guarantee as to fitness for purpose and on the understanding that the purchase will ensure that the goods are made safe and are serviced before re-sale. No warranty whether expressed or implied by law will attach to any such sale. It is the prerogative of a purchaser to inspect the merchandise offered for sale. Marthill Int Ltd will assume that such an inspection has been made. Arrangement to inspect can be made with appropriate warehouse staff."