CR Waste Factor

surplusseller

I've purchased a few truckloads of customer returns from a broker located here in Canada. His main source of supply is the Genco warehouse located in Rexdale, Ontario. When I buy these loads my shipper picks them up at the Genco warehouse so I can be sure my broker, who does keep a warehouse himself, does not cherry pick the load beforehand.

However, I'm still finding the waste factor to be quite high with these CR loads. I know that Genco MarketPlace sells on eBay via two accounts they have. Would I be out of line to suggest Genco may be cherry picking loads for their own selling purposes?

I was told the waste factor would run about 30-40% with the loads I've been buying but it appears to be higher than that. I would estimate 20% garbage, 60% a defect of some sort, of which half are repairable, half are not and about 20% good to go without any defect at all.

Does this sound like a standard customer return load or should I be seeing more defect free product from each load? At the current rate I'm finding it difficult to turn a decent profit. We do repair anything we can and are careful not to waste anything unnecessarily.

jimmy_huber

Actually it sounds like a terrible customer return load. Loads like that almost put me out of business. A retailer does not fill a truck full of Crap. If your getting more then 15% damages on a load then your buying from a Cherry picker.

I buy loads direct from the retailers docks. I am a broker for several retailers now and I never see more then 15% in damages. But to be honest most of it is repairable or can still be sold.

The last Target truckload I purchased had over 90,000 in products on the load Most of it was brand new with about 7% damage ratio. Target Claimed less then 10% in damages for their loads.

I had bought target from other suppliers like amlinc and the damge ratio was as high as 45%-60%

I went from renting a 30 Cubic foot dumpster for tossing junk to renting a 4 cubic foot dumpster. 2 out of 4 weeks the dumpster is empty. The rest of the time Im just throwing card board boxes away or my personal garbage from the offices.

I would say find another supplier.

jimmy_huber

Just to add to this.

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This is far from untrue. The damage ratio is not on the rise. This is just an excuse for Genco. 80% of customer returns are from buyers remorse. 20% are slightly distressed to damaged. Most damages are caused by liquidators that throw products around and only stock distressed merchandise to pallet buyers.

surplusseller

Actually it sounds like a terrible customer return load. Loads like that almost put me out of business. A retailer does not fill a truck full of Crap. If your getting more then 15% damages on a load then your buying from a Cherry picker.
I buy loads direct from the retailers docks. I am a broker for several retailers now and I never see more then 15% in damages. But to be honest most of it is repairable or can still be sold.
The last Target truckload I purchased had over 90,000 in products on the load Most of it was brand new with about 7% damage ratio. Target Claimed less then 10% in damages for their loads.
I had bought target from other suppliers like amlinc and the damge ratio was as high as 45%-60%
I went from renting a 30 Cubic foot dumpster for tossing junk to renting a 4 cubic foot dumpster. 2 out of 4 weeks the dumpster is empty. The rest of the time Im just throwing card board boxes away or my personal garbage from the offices.
I would say find another supplier.

Wow, less than 10% damage. I'd be doing backflips for a load like that. I made the decision to start hunting for new suppliers after my last load. We don't have the selection you do in the States but I do have some leads.

Thanks Jimmy.

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