Customer returns are items returned to the retailer because the customer changed their mind, the item was faulty, or exchanged for a different item. Customer returned items often end up as part of liquidation and closeout lots.
Many online retailers purchase customer returns as a way to get cut-price deals that can be resold for a profit. As with all forms of product sourcing, when buying customer returned items, you must first determine whether there is a keen buyer market for the products. If you fail to do your due diligence, you may end up purchasing stock that you can't sell, let alone sell for a profit.