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LAS VEGAS REVIEW-JOURNAL

By Ann FriedmanLas Vegas Review-Journal

Ever been curious about where the snow globe you received for Christmas andreturned actually ended up?

It's a lot closer than you think.

Hundreds of thousands of returned items have been flowing into the LiquidityServices warehouse on East Alexander Road in North Las Vegas where they'resorted and tested before being resold on one of the company's three resellingchannels.

"We do see volume pickup significantly this time of year," said Vice President ofOperations Preston Mosier. "We make updates to our staffing, increase ourstorage capacity and make updates to our equipment so we're able to handleeverything that's coming in."

Posted January 8, 2016 - 3:32pm Updated January 8, 2016 - 3:34pm

That gift you returned may havelanded in North Las Vegas

Forklift operator Adrian Rodriguez moves a pallet of products in the warehouse at LiquidityServices at 3010 Alexander Road in North Las Vegas on Wednesday, Jan. 6, 2016. BillHughes/Las Vegas Review-Journal

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According to the National Retail Federation's Annual Return Survey, about $63billion worth of holiday merchandise was returned in 2015 or roughly 10percent of total holiday sales.

The most commonly returned items are clothing and fragrances because ofsizing issues and personal preferences, a RetailMeNot report revealed.

In addition, the report said one in three Americans return 20 percent of the giftsthey receive during the winter holiday season.

Liquidity Services' 108,000-square-foot Las Vegas warehouse has experienced a45 percent increase in an influx of return merchandise last month compared toDecember 2014.

"Returns start coming in right away and we see an increase in early Decemberbefore the holiday even starts," Mosier said. "Over the last several yearsretailers have gotten more efficient in their returns process so the products flowback to us very quickly."

Liquidity Services, which also has a second Las Vegas warehouse at 4390Flossmoor St., receives a wide variety of merchandise including apparel, toysand electronics from manufacturers as well as more than half of the top 20retailers including Home Depot and Sony.

According to Mosier, though each retailer has different criteria regardingprocessing returns, if a product has been opened or the packaging or productitself is damaged, the retailer is not able to put the item back on the shelf andsell it as new so it will be sent to Liquidity Services.

"If the product is returned brand new and never opened, it will likely be putback on the shelf," he said.

Once Liquidity Services receives an item, it goes through an inspection processto determine its condition and value. Electronics are put through a functionaltest to ensure they're working properly and all data has been removed.

The company sells individual products on its website, Secondipity.com, whilelarger quantities of products are sold on Liquidation.com. Truckloads of productsare sold via direct negotiations with the company, Mosier said.

"When companies have customer returns or overstock we take that product inand help them resell it and pass that savings onto consumers," he said."Savings can be quite substantial — somewhere between 40-70 percent bypurchasing return merchandise."

General Manager of Operations Alan Noble said Liquidity Services serves adiverse customer base.

"We have quite a few customers who make a living off of picking our productsup," he said.

Henderson resident Nicole Andersen is one of those customers as shepurchases everything from high-end baby gear to electronics from LiquidityServices before reselling them online or locally.

"I participate in online auctions as well as buy truckloads of items so it's greatto not have to pay shipping and just go and pick it up from their warehouse,"she said. "I'm only paying a fraction of the total retail price."

Mosier said once holiday returns slow down, televisions will flood the warehouseafter the Super Bowl in February.

"We'll see a lot of television returns in February before things begin to stabilizein late February into March," he said. "We'll see a lot of overflow of lawnfurniture and seasonal items during the summer so we're always able tocapitalize on the seasons."

Mosier said he doesn't anticipate ever seeing the amount of returns coming to ascreeching halt.

"There's so much growth in online shopping so online retailers need to becompetitive with their returns," he said. "We're definitely not seeing returnsdecline."

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Liquidity Services is hosting an open house on Feb. 27 from 11 a.m.-3 p.m. attheir facility, 3010 E. Alexander Road, Ste. 1001, North Las Vegas.

Contact reporter Ann Friedman at afriedman@reviewjournal.com or 702-380-4588. Find @AnnFriedmanRJ on Twitter.

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