The stores are taking such returns often without question. "A whole new market is emerging, where small businesses that are looking for cheap products to resell will take these returned goods and sell them to buyers who cannot afford to pay full retail prices," he says.
"There are a number of sections in the CPA that allow consumers to return goods to suppliers and there are many reasons why consumers are returning goods." Many of the larger retailers will take products back and pay refunds whatever the reason and usually the right to a refund depends on the customer's reason for returning the product. "Some shops will take back gifts without question, particularly if it is their own brand of product, without asking to see a receipt or other proof of purchase."
Furthermore, the growth of online retail in South Africa is also growing the returned goods market because of the CPS cooling off period and a customer-centric culture, where retailers accept that people change their mind when they physically see the product they bought online. Returns are often a good thing for a retailer looking to grow customer loyalty and cross-sell to other purchases.
South African born Greenberg founded on-line retailer DealsDirect and is currently chairman of the National Online Retailers Association in Australia. He recently started the company together with black empowerment group Amabubesi, to buy returns from retailers looking to clear their shelves for new product, for resale to smaller retailers or wholesale online. It operates warehouses in Johannesburg and Cape Town and is hiring individuals to handle the influx of returns expected to flood into the company's space over the next four months.
Typically, business begins to pick up in November and December when small, independent entrepreneurs and informal traders stock up for the holiday shopping season. As post season returns start to come in, inventory rises sharply, giving buyers more of a selection and allowing them to build inventory while it is available.
Its customers range from minor wholesalers, who work primarily off websites such as Gumtree, to suburban discount retailers. These may not have access to volume discount goods that larger retailers do.
"We provide a liquid marketplace and sell product that allows small businesses to make profits. It's primarily the type of inventory that traditional retailers don't want to deal with and that's where we come in and it has already stated to get busy," he concludes.
