What happens to returns from web shops? Some go back into stock after inspection, but another part is resold in bulk to wholesalers and resellers, together with overstock and undeliverable parcels. That is not a coincidence but a calculation: inspecting, repackaging and storing cost money, and that money is often out of proportion to the value of the item. In this article you will read how that calculation works, what the origin of a lot says about its condition, and why selling by the kilogram makes sense for both sides of the table.
Return, overstock and NPAI: three flows, each with its own condition
In practice, the umbrella term return goods covers three different flows, and the origin says a lot about what you can expect. A return was ordered by a consumer, received and sent back; the reason can range from a wrong size to a defect. Overstock has never been with a consumer: it is stock the seller can no longer move through the regular channel, for example after a season or a change of assortment. NPAI, meaning not delivered or undeliverable, concerns parcels that never reached the recipient and are usually still closed.
At CNJ you see that difference reflected in the grade indication and the description of each product line. Amazon Overstock Boxes are A grade, Amazon Shipping Bags (BP2) are closed NPAI parcels, and the Parcel Returns Small/Mid from DHL, Hermes and GLS are A–B grade. No origin comes with a guarantee on contents or condition; photos are representative examples, and items may be incomplete, used or untested.
- Return: possibly opened, used, incomplete or defective; the packaging may be damaged.
- Overstock: as a rule unused, but the packaging may show traces of storage and transport.
- NPAI: usually still closed, contents unknown; the reason for non-delivery says nothing about quality.
Why inspecting a return often costs more than the item is worth
For a web shop, a returned item is not free stock. The parcel has to be opened, the item identified, checked for completeness and damage, possibly tested, repackaged and put back in the right place in the warehouse. Every step costs labour time and system handling, and those costs are roughly the same per item, whether it is a phone case worth a few euros or a coffee machine.
With inexpensive items, those processing costs quickly exceed the margin the web shop could still make on a second sale. On top of that, an opened item generally can no longer be offered as new, so it ends up in a separate outlet flow anyway, with its own photography, descriptions and customer service. For many sellers it is then more rational to bundle returns unchecked and sell them in bulk to a party that has made sorting its profession.
Storage costs, seasons and obsolescence: why stock cannot wait
Even items that are still in good condition cost money for as long as they sit in the warehouse. Every pallet takes up space that could otherwise be used for fast-selling stock, and warehouse space is usually charged per square metre or per pallet position. For a web shop that wants to turn its stock several times a year, a pallet of slow-moving returns and leftovers is above all an obstruction.
Seasonal items and electronics make this problem bigger. Garden items, holiday decorations and toys around Sinterklaas and Christmas lose a large part of their sales chance once the season is over, and with electronics and accessories a newer model often appears within a foreseeable time. Whoever waits too long not only sells later, but also at a lower price. A quick bulk sale frees up space and capital at the moment it still matters.
Undeliverable parcels: why carriers do not send everything back
A carrier deals daily with parcels that cannot be delivered: an incorrect or incomplete address, a recipient who is not at home and does not collect the parcel, a refused delivery or a damaged label. Returning to sender seems the logical step, but that costs transport and handling all over again, and with an unreadable label or a sender outside the network it is not always possible.
In practice, such parcels are therefore kept for a period and then written off, after which they are offered to wholesalers closed and by weight. That is the origin of a product such as the Amazon Shipping Bags (BP2): original small parcels in paper shipping bags, with contents nobody knows in advance. We stress here that CNJ is an independent wholesaler; the names Amazon, DHL, Hermes and GLS describe only the origin of the goods.
Why selling by the kilogram makes sense for both sides
Anyone who wanted to value a lot of thousands of mixed items one by one would bring back exactly the work the seller wanted to avoid. Weight, on the other hand, is objective, quick to measure and verifiable for both parties. In a single transaction the seller frees up space, receives a predictable amount and no longer has to run customer service on individual items. The wholesaler buys volume at a price that matches the uncertainty about the contents.
For you as a reseller, that is where the opportunity lies: you buy at a fixed, public price per kilogram — with us, depending on the product line, €4.25 to €6.00 per kg, excl. VAT and freight — and earn your margin by sorting, presenting and selling through a channel the web shop itself has no time for. The downside is that you buy the uncertainty along with it. So never calculate with the theoretical retail value of a lot, and start with a trial lot to measure your own figures.
- Buy overstock if you are looking for unused items for outlet or shop sales.
- Buy parcel returns if you have time to test and price items individually.
- Buy NPAI parcels if the surprise element itself is your product, as with mystery boxes.
- Always ask for an invoice and buy from a wholesaler that describes origin and condition honestly.
Resale instead of destruction: the circular side
For a seller, destruction is sometimes the cheapest way out, especially with low-value items and high processing costs. Bulk resale offers an alternative in which the product does reach an end user, without the original seller having to do any more work on it. We make no statements about the exact environmental gain, because that depends on the product and the chain as a whole, but the direction is clear: an item that is sold after all does not have to be produced again.
For resellers, that is also a story to tell customers, provided you tell it honestly: return goods get a second chance, without promises about savings you cannot substantiate. You can read more about that side of the trade in our article on return goods and the circular economy.
Returns, overstock and undeliverable parcels are resold because inspecting, storing and waiting cost the original seller more than a quick bulk sale by the kilogram yields. For you as a reseller, that means access to goods at a public price per kilo, with the uncertainty about the contents as the trade-off. If you keep the three flows apart and keep your first lot small, that uncertainty is manageable. Thinking about starting your own mystery box business? Get in touch — we are happy to help you find a suitable first lot.
Frequently asked questions
- Are web shop returns really destroyed?
- Some are, especially low-value items where inspection and storage cost more than a second sale brings in. Other returns go back into stock or are resold in bulk to wholesalers and resellers. The proportions differ per seller and product group; we make no statements about them.
- Are return goods from web shops new or used?
- That depends on the flow. Overstock is as a rule unused, a return may be opened, used or incomplete, and an undeliverable parcel (NPAI) is usually still closed but of unknown contents. A wholesaler indicates this with a grade, without a guarantee on the condition of individual items.
- Why are return lots sold by the kilogram?
- Because weight is objective and quick to measure, whereas valuing thousands of mixed items one by one is exactly the work the seller wants to avoid. The price per kilo reflects the uncertainty about the contents: you pay for volume, not for a promised retail value. Measure with a trial lot what a kilo yields in your channel.