Product Conditions

Product Conditions

Different companies or programs may use various product definitions to describe the condition of the goods being sold.

Terms such as Liquidation, Salvage, Closeouts, Shelf Pulls, Overstocks and Returns are often used.  We at Horizon Investment Group, LLC  use term Liquidation Merchandise to describe all our products Common terminologies  used in the Liquidation space Customer Returns

  • Shelf Pulls
  • Overstocks
  • Master Case
  • Pre-Worn
  • Defective
  • Tested-Working
  • Refurbished
  • Irregulars

 

CUSTOMER RETURNS

What are Customer Returns?

Customer Returns are items that were once sold from the physical or online stores and are then returned by the consumer in varying conditions for different reasons.

Sometimes also referred to as Salvage Goods, Customer Returns are typically items that have been purchased from a store (or online store) but then returned by a customer. 

Stores have different return policies as well as product liquidation policies which can affect the type & condition of products you may see in different loads. Though policy will vary from store to store – Large Majority of Customer return goods simply undergo a visual check at the store level prior to making their way into a return load. Higher value items may be subject to more detailed inspection prior to being selected for liquidation.

The general “quality” of customer return loads can vary significantly from 50% or greater Defective rate while others are only 10% or 20%. Return loads with low defective rates are sometimes referred to as “Clean” Customer Return Loads. Return Loads with very high defective rates are at times referred to as Salvage Loads.

Customer Returns typically have the following characteristics and stores can decide to liquidate these goods for several reasons:

  • Defective when returned by the customer
  • Cosmetic blemishes or slight defects
  • Out of box goods
  • Missing minor or major components (remote controls, manuals, covers, cables)
  • In-store display items
  • Damaged exterior packaging
  • Items that the store does not want to or cannot re-shelve
  • One or more features does not work
  • Store is overstocked with such items
  • Out of season items
  • Discontinued items
  • Defaced barcodes and/or labels
  • Signs of handling – both external packaging and the item itself

Often, additional internal store tracking or return labels can be found on the items. All customer return goods are always sold with no warranty or guarantee. Any warranties found with the goods are invalid and cannot legally be used. Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular listing.

Many stores do not have separate programs to liquidate customer returns or excess new merchandise & new shelf-pull or overstock merchandise can commonly be found in customer return loads.  Horizon Investment Group, LLC  will always define a listing as ‘Customer Returns’ even if it includes a significant % of Shelf-Pull or Overstock Merchandise. Depending on the product category and each stores liquidation policy – working percentages on customer return loads can vary greatly.

Furthermore, working percentage definitions can also vary depending on the category of goods in question. Often when one refers to ‘working percentage’ of products they are referring to the ‘salable percentage’ of the load. (For example if we are talking about a 6 piece cookware set and 1 piece is missing or damaged – though one may consider the item as ‘not working’ or ‘defective’ it still has a resale value and one can still recover a percentage of the product’s original value). Generally speaking, the recognized industry average when trying to estimate working percentages is said to be around 65-75% working, 20% repairable, and the remainder throwaway/scrap/parts, etc.

In practice, no individual load or pallet will have that exact breakdown, but these percentages are fairly representative when describing the average expected condition of the goods when purchasing them regularly. Ultimately, this is a rough approximation and the actual working percentage on any given pallet or load can be much worse or better.

Purchasing Customer Returns and reselling them for profit is a tried, tested and proven concept. However, before launching into a business venture involving liquidation merchandise, you should know that:

  • Typically, liquidators such as Horizon Investment Group, LLC operate a no returns policy with all sales deemed final and all goods sold AS-IS irrespective of condition unless otherwise stated.
  • Purchasing customer returns is not for everyone.
  • There is a risk your purchases may not be profitable and this risk increases when purchasing customer returns.
  • There is a steep learning curve that newcomers to the industry typically experience and one should expect to do much better once they have more experience with such goods.
  • In many cases items are not retail-ready, and dealing with liquidation goods requires considerably more work in terms of researching, processing, pricing & creativity than dealing with new wholesale master case items.

This type of merchandise, requires preparation to process, test, check and research pricing on the goods prior to selling them. 

  • If you only want to deal with 100% retail ready items do not purchase customer returns.
  • If you are not prepared to expect a percentage of items to be out of box, defective, cosmetically blemished etc., do not purchase customer returns.

 

NEW OVERSTOCKS

What are New Overstocks?

New Overstocks are items that were never sold in a retail setting though they may no longer be in their original master case or factory packaging.

New overstocks, also often referred to as Closeouts, tend to be goods which typically have never been merchandised or exposed for sale in a retail store. Such goods can materialize from retailers, importers, manufacturers or distributors who are closing down or simply have discontinued or excess goods in their warehouse that they need to move. Overstock goods tend to be in 100% New Condition.

New Overstock items typically have the following characteristics:

  • Items are typically 100% retail-ready and in new condition
  • No additional retail/discount or warehouse labels/tags on the items
  • Items are in their original retail packaging but can occasionally also be loose-packed
  • Packaging and item tend to be in good condition with no excessive signs of handling

 

SHELF PULLS

What are Shelf Pulls?

Shelf pulls are items that were already exposed for sale in a retail space but have been “pulled” from the shelfs. These goods are typically New and have never been used

Shelf pulls are typically excess goods that have been displayed for sale in a store (or online store) but have never been purchased by a customer. Shelf pulls are typically considered excess inventory from store shelves. You should expect to have some checking work to do as well as cleaning off potentially dusty items and removing price tags (if necessary) before reselling the items.

Shelf pulls would have been handled multiple times during the process of getting them from the store back to a Liquidator & a small % of items may shows signs of excessive handling & may have stains or slight imperfections.

Shelf pulls will typically be in good selling condition and may have some or all of the following characteristics:

  • End of season & seasonal goods
  • Discontinued goods
  • Items may still have their original retail pricing stickers/tags on them
  • Items may have additional retail discount tags on them
  • Packaging or item may show signs of handling
  • Exterior packaging is often in less than perfect condition
  • May be defaced/de-labeled (inner labels or tags removed to prevent return to the original store)
  • Some items may still have retail security sensors attached
  • A percentage of the items may be out of box or in open boxes
  • A percentage of the items may be in-store display units or samples
  • Short-dated or expired goods may be found in some lots

 

Floor samples:

A piece of merchandise that is used as a display or demonstration model. Also called floor model.

  • Appear in new condition with no signs of prior use
  • In or out of original factory packaging
  • May have scratches and dents
  • Mostly retail-ready
  • Out of season items
  • Discontinued items
  • Defaced barcodes and/or labels
  • Signs of handling – both external packaging and the item itself

 

 

IRREGULARS

What are Irregulars?

Irregulars (depending on commodity also referred to as Scratch and Dent) are generally new products that are being discarded or liquidated as a result of improper or defective manufacturing. In some cases, this term is also used to describe Furniture or Large Appliances which may have some scratch and dents but are otherwise fully functional. They can also be called “imperfect goods”. In the majority of cases, irregular items have very small manufacturing defects such as the wrong color thread, improper stitching, slight discoloration from the intended item’s color, other minor blemishes, scratches, dents, discoloration or other imperfections.

Irregular items may have the following characteristics:

  • Appear in new condition with no signs of prior use
  • In or out of original factory packaging
  • May show signs of manufacturing defects (improper stitching, etc.)
  • May show small stains that occurred during manufacturing
  • May have scratches and dents
  • Mostly retail-ready

 

 

TESTED-WORKING

What are Tested-Working Goods?

Horizon Investment Group, LLC  will occasionally offer items that have gone through a testing process and are deemed functional or “tested-working.” These items may be a mix of overstocks, shelf pulls and customer returns and are typically higher end, more expensive units.

Tested-working goods may have the following characteristics:

  • Typically, but not necessarily in original box
  • May or may not contain all needed items/components (remotes, cables, manuals, etc.)
  • Most or all functions work and item can be categorized as functional for resale purposes
  • Item may show signs of handling and usage
  • Items may have additional labels, price tags and/or internal identification labels or stickers

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MASTER CASE

What are Master Case Goods?

Master Case goods are typically 100% new in original manufacturer’s packaging and are fully functional and complete. These goods have not been exposed for sale in any retail environment and products can be considered 100% new and retail-ready.

Wholesale master case items may have the following characteristics:

  • 100% new
  • In original factory or manufacturer’s packaging
  • Will include all parts, components, accessories and documentation
  • No visual signs of wear, usage or excessive handling
  • Retail-ready

 

REFURBISHED

What are Refurbished Goods?

Horizon Investment Group, LLC  also offers “refurbished” goods for sale on a periodic basis. Refurbished goods are items that have gone through a process to test and restore the items to their original working condition. Often these items are repackaged in generic boxes and may not include all the items found in the original manufacturer’s packaging.

Some of the characteristics of Refurbished goods may have the following:

  • Items should all be in good working condition
  • All needed parts/components are typically included
  • Items may or may not come with the manufacturer warranty (see specific listing for details)
  • Items may be repackaged in generic boxes
  • Items may show signs of slight usage or cosmetic blemishes

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.

DEFECTIVE

What are Defective Goods?

Horizon Investment Group, LLC  will occasionally offer tested not-working or “defective” pallets or loads. Such items are typically higher end electronics which have gone through a testing process, visually defective items, incomplete sets (like furniture, housewares, etc.), items good for spare parts only or out of date items. Defective goods have the potential to be profitable if you have the ability to repair or strip them of their parts for resale.

They may have the following characteristics:

  • Items have gone through a testing process and have been deemed not working
  • Items may be visually defective or incomplete
  • Incomplete or partial sets or parts
  • Items may be brand new but with a major quality control flaw, making them defective (for example dodgy audio on a stereo system)

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.

PRE-WORN

What are Pre-Worn Goods?

Horizon Investment Group, LLC  periodically offers a pre-worn (used) clothing. These goods can come from a range of sources and are available year-round. Our pre-worn goods go through an inspection process to ensure quality control and offer tremendous value for money for the right market.

Pre-worn goods may have the following characteristics:

  • Pre-worn clothing has previously been used or worn
  • Lots may be made up of discontinued brands, models or styles
  • Items may show signs of fray and usage
  • There are typically no retail tags, labels or additional store markings on the items
  • Can be sold by the unit, pallet or by weight

Programs vary from store to store – please see listing descriptions and ask your Account Manager for further information on any particular item.