Here's Where Millions Of Returned Holiday Items End Up
PHILADELPHIA (CBS) -- Did you return any gifts that you received during the holidays? Over the last month, millions of Americans returned unwanted items.
But where do all those items go after they're returned? You may be surprised at where many of those items end up. The holidays may be over, but it's the most wonderful time of the year for liquidators. That's because they end up with many items that were returned to sellers like Amazon, Home Depot and Sears.
"Most of it is just customer returns, or buyer's remorse," Michael Ringelstein, who owns an Illinois warehouse, said.
Michael Ringelstein says his warehouse is overflowing with everything from electronics to appliances. Once tested, they're auctioned off at about half the price.
"Consumers assume when they return it, it's put back on to the shelf, which isn't the case," Ringelstein explained.
Ringelstein's business has jumped 1,000 percent in the past four years and online shopping is a big reason why. Americans returned $260 billion worth of items last year.
Tobin Moore, CEO of optoro.com, helps stores process those returns. He says restocking items can be expensive for retailers.
"So often retailers just liquidate them for pennies on the dollar or in some cases throw them away in a landfill because it's more cost-effective," Tobin explained.
Items that survive end up at discount retailers, pawn shops and flea markets. Some companies also sell the goods online. Many of the items that end up with liquidators can't be placed back on the shelf due to damaged packaging, removed labels or other minor issues.
One of the best times to shop for liquidated stock is right now, after the holidays, when retailers receive a surge of customer returns.
