Buying returns - The ultimate guide 2026

Why buying returns is a smart business strategy

Buying returns has developed into a profitable business model in recent years. When you buy returns as a retailer, you therefore receive high-quality products at reduced prices. You can also resell them with attractive margins. Buying returns also helps to conserve resources because good products are not destroyed. Instead, they are given a second life cycle.

This guide will therefore tell you everything you need to know about buying returns: from the basics to quality ratings and successful sales strategies. You will also learn what to look out for when purchasing. We will also show you how you can increase your margins. Whether you are new to this business or want to expand your existing range, this guide will provide you with the knowledge you need to make successful decisions.

What are returns and how do they arise?

Definition and origin

Returns are products that end customers have sent back to the retailer or manufacturer. Consequently, the reasons for returns are varied. They range from simple bad purchases to technical defects. In the German mail order business, consumers have a statutory right of withdrawal of 14 days. The returns rate in e-commerce is therefore correspondingly high.

Main reasons for buying returns

The most common reasons why products are returned and you can buy returns later are:

• Bad purchase or not to your liking: The product does not meet the customer's expectations
• Wrong size or color: Especially for clothing and household appliances
• Double order: The customer has inadvertently placed multiple orders
• Gift returns: The gift does not suit the recipient
• Transport damage: External damage during shipment
• Technical defects: The device does not work as intended
• Change in the situation: For example, a move or renovation has been postponed

The returns process

After customers have returned products, they usually go through a fixed process:

1. Goods receipt and recording: First, the return is recorded at the original retailer
2. First sighting: A rough assessment is then made as to whether a resale is possible
3. Resale to wholesalers: After all, many manufacturers and online retailers sell returns on to wholesalers without checking them

This is where the opportunity begins for you as a retailer when you buy returns via elvinci:

As a wholesaler, Elvinci therefore takes care of quality control for you: every single appliance is visually inspected. In addition, an assessment is carried out using a 100-point system. Each appliance is also documented photographically.

As a retailer, you therefore accept the goods from this point onwards. You then carry out the following steps: Functional testing, repair if necessary, reconditioning and finally resale to your end customers.

The key difference between elvinci and other wholesalers is that while most suppliers resell returns without checking them, elvinci offers a clear assessment. This is based on visual defects. This means you know exactly what you are buying when you buy returns. However, the functional check and possible repair is then up to you.

Advantages of return purchases for retailers

Attractive purchase prices when buying returns

The biggest advantage is therefore the reduced purchase prices. When you buy returns, they are therefore offered at a significantly lower price than new goods. This is because they can no longer be sold as "brand new". This price advantage therefore allows retailers attractive margins when reselling. As a result, you can increase your profit margin. At the same time, you can also offer competitive prices.

High product diversity

The returns market also offers access to an enormous variety of products across all sectors. When you buy returns, you will find a large selection ranging from electrical appliances to household goods and tools. What's more, the range is constantly changing. This allows you to flexibly design your range. It also allows you to react to market trends.

Transparency through precise evaluation

In contrast to most suppliers, who resell returns without checking them, some wholesalers offer a clear quality assessment. A precise points system with 100 gradations instead of rough A/B/C groups enables a realistic calculation. This means you know exactly what you are buying. What's more, you only pay the actual value of the goods when you buy returns.

Sustainability as a sales argument

Trading in returns also actively contributes to the circular economy. Products that might otherwise be destroyed are given a second chance. This sustainability argument is also appreciated by more and more consumers. It can therefore be used as a feature in brand communication. It also strengthens your brand image at the same time.

Rapid scalability

The business model can also be scaled flexibly if you buy returns. Retailers can start with small quantities. If successful, they can then gradually scale up. The various purchasing formats therefore offer suitable options for companies of all sizes. This also minimizes your risk when starting out.

Quality assessment: The elvinci points system vs. classic ABC categories

The problem with classic A/B/C categories when buying returns

The classic division into A, B and C goods is the norm for most suppliers. However, this is precisely where the problem lies when you buy returns:

Why ABC groups are not enough:

• There are only three rough levels for completely different states
• Two items with "B-goods" can therefore differ massively in value
• There is also a lack of clarity about specific defects
• The risk for the buyer is therefore high
• Retailers therefore often pay too much for mediocre goods

Example from practice:

• A device with a small scratch on the back = B-goods
• One device with visible scratches on the front = also B-goods
• Same group - but completely different sales values!

The solution: 100 points instead of three letters

Wholesalers such as elvinci have therefore developed precise assessment systems. These accurately document the condition of each individual device. No more blanket groups, but instead a precise rating from 100 points (as good as new) to 0 points (defective) when you buy returns.

That makes all the difference:

✅ Clarity instead of Excel lists: Each device is documented with photos and precise descriptions. So you can see exactly what you are buying.

✅ Exact prices: The number of points also determines the price automatically. This means that you only pay the actual value of the goods.

✅ Better calculation: You can also plan your sales prices on a sound basis with the exact points evaluation.

✅ Detailed evaluation: A scratch on the back is assessed differently to one on the front. This is because one is visible while the other is not.

Your task as a retailer after buying returns

After the purchase, you therefore accept the goods. Then carry out the following steps if required:

• Function test: First test the technical function
• Repair if required: You then rectify technical defects
• Preparation: This is followed by cleaning and, if necessary, new packaging
• Resale: After all, you market the goods to end customers or other retailers

A precise evaluation system provides you with a clear basis for this. You then optimize the rest according to your standards after you buy returns.

Pallets vs. multiple devices: the right purchasing strategy when buying returns

Important to understand: B2B quantities, no private purchases

In the professional returns trade, there are no classic "individual purchases" as in the private customer business. As a retailer, you therefore buy:

• At least 1 pallet or
• At least 5 devices combined

This fundamentally distinguishes B2B returns trade from the end customer business. You think in business quantities, not individual items, when you buy returns.

Strategy 1: Pallet purchasing when buying returns

What is a pallet? A bundled delivery with several articles of one group or mixed.

Advantages:

• Rapid development of a broad product range
• Large variety of products in one delivery
• Efficient for experienced traders
• Also good for retailers with enough storage space

Disadvantages:

• However, higher start-up costs required
• More storage space also needed
• Effort for sorting and preparation

Suitable for:

• Experienced dealers with routine
• Business models also with a high turnover of goods
• Retailer with enough storage space
• Development of a broad product range

Strategy 2: Combine several devices in a targeted manner

What does that mean? You choose at least 5 devices from the range. You then compile your delivery individually when you buy returns.

Advantages:

• Precise selection according to your needs
• Focus also on your target group and sales channels
• Better control over investment
• Targeted expansion of the product range

Disadvantages:

• More time required for selection, however
• Smaller product range per order

Suitable for:

• Specialized retailers with a focus on specific product groups
• Dealers also with limited storage space
• Targeted additions to the existing range
• Strategic development also in niche areas

Pricing: Not flat-rate, but individual

Important to understand: Prices vary greatly depending on product type, size and condition. They therefore do not depend on the purchase format when you buy returns.

Examples from practice:

✅ One side-by-side refrigerator (large appliance, high-quality)

• Can be more expensive than a complete range of small appliances
• High individual value = therefore high purchase price

✅ A standard washing machine (large appliance, standard)

• Can be cheaper than a range of mixed small appliances
• Average unit value = therefore average purchase price

✅ Range of small appliances (coffee machines, mixers, vacuum cleaners)

• Price depends on quantity, brands and condition
• Many items = therefore higher total value possible

The rule: Therefore, always compare price per appliance with resale value - not format against format. One high-quality large appliance can therefore be more profitable than ten small appliances.

Individual composition and flexibility

Modern wholesalers also offer maximum flexibility when you buy returns:

• Put together your desired combination from the available range
• Also mix large and small appliances as required
• You can also adapt your order to your storage location
• React flexibly to your current demand

This flexibility thus combines the advantages of different purchasing strategies. It also enables customized procurement for your business model.

Popular product categories when buying returns

Large electrical appliances

Washing machines, refrigerators, dishwashers and ovens are among the most popular products when buying returns. Demand is therefore constantly high, as these appliances are needed in every household. They also offer attractive margins.

Special features:

• High value of goods enables attractive margins
• However, logistics and storage require appropriate infrastructure
• Technical testing is also important
• Products from established manufacturers also have high resale rates

Success factors:

• Clear description of the condition
• Professional presentation also with pictures
• Clear information on energy efficiency and functions
• Offering delivery and connection therefore increases sales opportunities

Buying small electrical appliances for returns

Coffee machines, vacuum cleaners, blenders, irons and other small appliances offer an excellent balance between investment and return when you buy returns.

Special features:

• Less space required for storage and transportation
• Faster turnover rate also possible
• Simpler function test also
• Lower individual risk as a result

Success factors:

• Check completeness of accessories
• Also prefer branded products for better resale
• Also take into account seasonal demand (e.g. barbecues in spring)
• Creating attractive bundled offers

Other attractive categories

Consumer electronics: Televisions, sound systems and headphones offer high margins, but precise condition checks are required

Tools and garden equipment: Seasonal tips and robust products with a long service life

Furniture and furnishings: Large margins, but higher logistical requirements

What to look out for when buying returns?

Choosing the right supplier

Choosing a reputable and reliable supplier is therefore crucial for success when buying returns.

Quality criteria:

• Clear product descriptions with pictures
• Accurate rating system also
• Reliable delivery times as well
• Professional packaging beyond that
• Good customer service in case of queries

The decisive difference: Most suppliers sell on returns without checking them - so you are buying blind. Specialized wholesalers, on the other hand, offer visual inspection, evaluation and photographic documentation of each individual device.

Quality check before purchase

Retailers should also create their own test criteria for rated products:

Checklist for the evaluation when buying returns:

• Does the description correspond to the pictures?
• Is the condition also realistically assessed?
• Are all the important accessories available?
• What defects are documented?
• So is the price appropriate for the condition and score?
• So is it worth buying at the planned sales price?

Calculation and pricing when buying returns

A realistic calculation is important here:

Cost accounting:

• Purchase price of the goods initially
• Shipping costs also
• Processing costs (cleaning, packaging)
• Any additional repair costs
• Storage costs as well
• Platform fees (for marketplace sales)
• Consequently, factor in the return rate

Pricing:

• Research market prices for comparable new goods
• Also check prices for B-goods with competitors
• Also set your own margin
• Pay attention to psychological price thresholds

Legal aspects of buying returns

Warranty: As a commercial seller, you are obliged to provide a warranty. However, you can reduce the warranty period to one year for B-goods and returns. However, this must be clearly communicated.

Product liability: You are also responsible for the safety of the products. Defective devices may therefore not be sold if there is a risk.

Mandatory labeling: B-goods and returns must be clearly marked as such. Furthermore, defects must not be concealed.

Successful sales strategies after buying returns

Multi-channel sales

Use different sales channels to increase your reach after you buy returns:

Online marketplaces:

• Wide reach and established customer base
• Trustworthy payment processing in addition
• However, note the fee structure
• Professional product presentation also important

Own online store:

• Full control over presentation and prices
• Direct customer relationship also
• No platform fees either
• However, marketing and traffic must be generated by yourself

Stationary trade:

• Customers can inspect goods on site
• Greater confidence also with large devices
• Personal consultation also possible
• Local customer loyalty as a result

Professional product presentation

High-quality product photos:

• Showing several perspectives
• Good lighting and image quality
• Present deficiencies honestly
• Consequently, make proportions recognizable

Meaningful descriptions:

• Specify technical data in full
• Also describe the condition in detail
• Also list accessories and scope of delivery
• Consequently, advantages and possible applications

Confidence-building measures:

• Use clear condition classes
• Also show customer reviews
• Also offer a right of return
• Provide secure payment methods as a result

Use seasonality when buying returns

Adapt your range to seasonal demand:

• Spring: Garden tools, barbecues, also air conditioners
• Summer: Fans, outdoor electronics, also cooling appliances
• Fall: Heating appliances, also Herbst tools
• Winter: Christmas business, plus household helpers

Customer loyalty and service

Excellent customer service:

• Fast response to inquiries
• Fair return policy also
• Problem solving also for complaints
• Post-purchase support consequently

Reward loyalty:

• Newsletter with exclusive offers
• Regular customer discounts also
• Referral programs also
• Early access to new products

Sustainability when buying returns

Conserving resources as a business model

Trading in returns makes an important contribution to the circular economy. Every product sold that does not end up in the bin saves valuable resources when you buy returns:

• Conservation of raw materials: Metals, plastics and rare earths do not have to be mined again
• Energy saving: The production of new devices is also eliminated
• CO2 reduction: Less production also means fewer emissions
• Waste avoidance: Good products will therefore continue to be used

Sustainability as a marketing argument

More and more consumers are attaching importance to sustainable consumption. So communicate these values:

In the product description:

• "Second life for high-quality products"
• "Sustainable savings also through reuse"
• "Active contribution to the conservation of resources"

Preserve authenticity: Avoid greenwashing - only communicate what is actually true. Sustainability is also a real advantage of your business model. You can therefore present this with confidence.

Logistics and warehousing when buying returns

Efficient incoming goods processes

Organize incoming goods:

• Check deliveries promptly
• Also check completeness
• Also document damage
• Store products and record them in the system

Warehouse organization

Optimal storage structure:

• Sorting according to product groups
• Also place fast-moving items within easy reach
• Store slow-moving products separately
• Apply FIFO principle (First In, First Out) consequently

Space-saving methods:

• Efficient use of shelving systems
• Also organize small items in boxes
• Stackable storage for large appliances
• Use digital warehouse management as a result

Shipping and packaging

Professional shipping:

• Packing products securely
• Also select suitable packaging materials
• Also compare shipping partners
• Offer tracking options as a result

Packaging as a quality feature:

• Neutral or branded packaging included
• Protection against transport damage
• Environmentally friendly materials are also preferable
• Therefore, do not forget the enclosures (invoice, warranty information)

FAQ: Frequently asked questions about buying returns

1. are returns always defective or damaged?

No, this is a widespread misconception. The majority of returns are therefore visually in good condition when you buy returns. The most common reasons for returns are also incorrect purchases, not to your liking or duplicate orders. The retailer must also check the function after the purchase. If necessary, they will then carry out repairs. With clear providers, visual defects are clearly documented and assessed.

2. what are the typical margins when buying returns?

Margins vary greatly depending on the product group, condition, processing costs and sales channel. Your purchase prices are therefore decisive. Your ability to repair and refurbish as well as your sales strategy when buying returns also count. Higher margins are often possible for large electrical appliances in good condition.

3. what initial investment is necessary if I want to buy returns?

It is possible to start with different investment levels. You therefore need at least one pallet or 5 appliances as a minimum purchase. A well thought-out strategy is also more important than high start-up capital. You also need technical know-how for functional testing and repairs as well as a solid sales channel. As your experience grows, you can gradually increase your investment.

4. do I need a business to buy and resell returns?

Yes, for commercial trade you need a registered business if you want to buy returns. As a commercial retailer, you are therefore subject to the warranty obligation. You must also be able to issue invoices. However, registering your business is simple and can be done at your local trade office. You can only buy from professional wholesalers as a registered trader.

5 How do I find reputable suppliers if I want to buy returns?

Pay attention to the following criteria: clear product descriptions with pictures, a precise rating system and comprehensible prices. You should also pay attention to a professional website and communication. Positive reviews from other retailers and clear terms and conditions are just as important. The decisive difference: Most suppliers therefore sell on unchecked goods. Professional wholesalers, on the other hand, offer visual inspection and a precise rating system for maximum clarity.

6. what legal aspects do I need to consider if I want to buy and resell returns?

You are obliged to provide a warranty. However, this can be reduced to one year for B-goods. You must also clearly label products as B-goods or returns. You also bear product liability and must clearly communicate defects. Consequently, the right of withdrawal applies when selling to end customers.

7 How do I store returns correctly?

Organize your warehouse according to product groups. Also use shelving systems efficiently. Also store fast-moving items within easy reach. You should also protect sensitive electronics from moisture and temperature fluctuations. Consequently, use digital warehouse management. You should also carry out regular inventories.

8. can I buy individual items or only pallets?

In the professional B2B returns trade, there are no classic individual purchases as in the private customer business. You therefore either buy at least 1 pallet or put together at least 5 devices individually when you buy returns. This distinguishes the commercial trade from the end customer business. Modern wholesalers allow you to put together your order flexibly according to your needs.

9. how does the quality assessment for returns work?

Most suppliers resell returns without checking them. As a result, they buy blind with rough ABC groups. Specialized wholesalers, on the other hand, use precise evaluation systems with up to 100 gradations instead of rough ABC groups when you buy returns. Each device is visually inspected, photographed and described in detail. A scratch on the back is also rated differently to one on the front. However, the functional check and possible repair is then the responsibility of the retailer.

10. is buying returns also worthwhile as a sideline?

Yes, the returns trade is also suitable for a part-time start. Therefore, start with a minimum purchase (1 pallet or 5 devices) and small product groups. Online marketplaces also offer a good infrastructure. Technical know-how for functional testing and repair is also important. With increasing experience and success, you can gradually expand your business.

Conclusion: Buying returns as a profitable business model

The trade offers retailers an attractive opportunity to build up a successful business with calculable risk and good margins when buying returns. Three factors are therefore crucial to your success: the right choice of a clear supplier, technical expertise for functional testing and repairs and a professional sales strategy.

The biggest difference to other business models: You buy goods at significantly reduced prices. You also invest your manpower in testing and processing. As a result, you achieve attractive margins when reselling.

Clarity is also particularly important when buying returns. While most suppliers resell returns without checking them, specialized wholesalers offer precise evaluation systems. These comprise up to 100 gradations instead of rough ABC groups. As a result, you know exactly what you are buying. What's more, you only pay the actual value of the goods.

Those who communicate honestly with their customers, realistically describe the condition of the goods and offer professional service will consequently build long-term customer relationships. They also benefit from recommendations. The returns trade is a business model with real potential. So take advantage of the opportunity for your commercial success when you buy returns.

Ready to get started? Inform now as a retailer and buy returns

Are you already a commercial retailer and would like to benefit from transparent returns purchasing?

Advantages when you buy returns from specialized wholesalers:

• Access to tested goods with precise evaluation
• Detailed product photos and descriptions
• Fair prices also based on actual condition
• Professional logistics and fast delivery
• Individual advice from dedicated contact persons

Important: Registration with professional wholesalers is only possible with an existing business.

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