Timeline of a lot: from return to auction
A returns lot goes through six main phases: customer return, reverse logistics, warehouse sorting, pallet grouping, auction on B2B platforms and delivery to the buyer. The complete process takes between 30 and 90 days and each phase reduces the product's price by up to 70-90% compared to the original RRP.
What exactly happens when a customer returns a product?
Every lot begins with a return. A customer buys a product on Amazon, in an online store or in a large retail chain, and for some reason decides to return it: wrong size, defective product, change of mind, damage during transport or simply because it doesn't meet their expectations.
At that moment, the lot's timeline is activated. The first phase is the return request, which in Amazon's case is managed through the customer's panel or the customer service centre. The buyer receives a shipping label, prints it and drops the package off at a collection point or a courier office.
The data we handle in the sector indicate that:
- Around 20%-30% of online purchases in categories such as fashion, electronics or home end up being returned.
- The average cost of managing a return for the seller ranges between €5 and €15 per order (transport, inspection, repackaging).
- For low-value products (under €20), many stores choose not to recover the item and leave it with the customer, because the logistics cost exceeds the value of the product.
This first phase can last from 3 to 10 days from when the customer requests the return until the package arrives at the logistics centre.
How do reverse logistics and warehouse sorting work?
Once the package arrives at the returns centre, reverse logistics begins. Here the product undergoes an inspection and sorting process that determines its final destination.
Inspection and categorisation
Warehouse staff review each item and classify it into one of these categories:
- Like New: the product has not been used or only the box has been opened. It can be resold as new.
- Very Good: it has been minimally used, with slight signs of use. It is resold at a discount.
- Good: it shows visible signs of use but works correctly.
- Acceptable: it has significant cosmetic defects or is missing accessories.
- Not sellable / for recycling: broken, incomplete or unusable product.
At Amazon, this process is known internally as "Grade and Resell" and can last between 5 and 20 days depending on the centre's volume. Products that cannot be resold on the main marketplace are diverted to liquidation channels.
Temporary storage
Items classified as sellable but not priority are stored temporarily. This storage can last from 15 to 45 days, depending on the seller's or the logistics centre's policy. At this stage, the product has already lost between 40% and 60% of its original value.
This is where the concept of a lot comes into play. Products are grouped by category, condition or simply by volume to form pallets or boxes that will be sold wholesale.
How are the pallets and lots that end up at auction formed?
Grouping is one of the most important phases of the timeline. Here the product stops being an individual item and becomes a wholesale sales unit.
Types of grouping
- By category: lots of electronics, fashion, toys, home, etc.
- By condition: "like new" lots, mixed lots, second-hand lots.
- By value: high-value lots (electronics, tools) or budget lots (small items, accessories).
- Full pallets: random mix of products from different categories, with no guarantee of specific contents.
A standard Amazon returns pallet usually contains between 50 and 200 items and weighs between 100 and 400 kg. Its starting price at auction can range between €150 and €1,500, depending on the contents and condition.
The value table throughout the timeline
| Phase | Estimated time | Product value (% of RRP) | Who owns it |
|---|---|---|---|
| Original purchase | Day 0 | 100% | Customer |
| Return requested | Day 1-3 | 100% | Customer / carrier |
| Reception at warehouse | Day 3-10 | 80-90% | Seller / Amazon |
| Sorting | Day 10-25 | 60-80% | Seller / logistics centre |
| Storage | Day 25-60 | 40-60% | Wholesaler / liquidation |
| Lot formation | Day 45-75 | 20-40% | Wholesaler / auctioneer |
| Auction and sale | Day 60-90 | 10-25% | Lot buyer |
As can be seen, the value plummets as the product advances along the timeline. The final buyer of the lot acquires merchandise at a fraction of the original price, which allows them to resell at a margin.
When and how are lots auctioned?
The auction is the penultimate phase of the timeline. The lots already formed are published on B2B platforms such as LotesOnline.es, where professional buyers bid on them.
The auction process
- Lot publication: the contents are described (category, number of items, general condition, weight) and a starting price is set.
- Bidding period: usually lasts between 3 and 14 days. Buyers can inspect photos, videos and, in some cases, visit the warehouse.
- Award: the highest bidder wins the lot. Payment is made and shipping or collection is coordinated.
- Delivery: the buyer receives the lot at their warehouse, ready to resell.
The final price of a lot depends on factors such as category, condition, current demand and the seller's reputation. In electronics auctions, for example, a pallet can reach €2,000-€5,000 if it includes high-value products such as laptops or tablets.
What margins does each intermediary handle?
- Amazon / original seller: recovers between 10% and 30% of the RRP on returned products.
- Liquidation wholesaler: buys at 10%-25% and resells at 30%-50%.
- Lot buyer (resale): buys at 20%-40% and sells at 60%-100% of the RRP if the product is in good condition.
These margins explain why the lot business is attractive, but also why it is essential to calculate management, storage and subsequent return costs well.
How long does it take the buyer to resell the lot?
Once the buyer receives the lot, a new phase begins: resale. Depending on the channel (Amazon, eBay, Wallapop, physical store), the turnover time varies:
- High-demand products: 7-30 days.
- Seasonal products: 30-90 days.
- Niche or low-demand products: more than 90 days.
The buyer must take into account that between 10% and 30% of the items in a lot may be unsellable or require repair, which affects the final margin.
Conclusion: the timeline as a decision-making tool
Knowing the complete timeline of a lot, from return to auction, is essential for any liquidation professional. Each phase adds time, cost and loss of value, but it also generates opportunities for those who know how to buy at the right moment.
If you are thinking of buying returns lots or liquidation pallets, visit the LotesOnline.es comparator. There you will find active auctions, verified lots and all the information you need to bid with judgement and maximise your margin.