Lines of Resellers Returning New iPads at Fifth Avenue Apple Store

MacRumors · Mar 23, 2012

A tipster sends us this tale of a trip to the Fifth Avenue Apple Store last night.

Went to the Fifth Ave store near midnight today, and saw that Apple was setting up a separate line just to handle the volume of iPad returns from Chinese resellers. The manager kept the separate line to ensure that regular customer's experience wasn't affected. Some people were returning up to 30.

A number of organizations have written about the reseller phenomenon, including the New York Times:

They show up in the early-morning hours: Chinese men and women, waiting silently and somewhat nervously outside of Apple stores in New York. On some days the lines they form can be a block long.

These are not typical Apple fans. Instead they are participants in a complex and curious trade driven by China's demand for Apple's fashionable gadgets -- products that are made in China in the first place and exported, only to make the long trip back.

The resellers try to buy as many iPads as they can to resell them at a high margin, bit it seems that Apple has had success in fulfilling demand this time -- even selling more than enough iPads to the resellers. Apple Stores have a 14-day return policy, and it applies to all iPad purchasers.

Article Link: Lines of Resellers Returning New iPads at Fifth Avenue Apple Store

Caliber26 · Mar 23, 2012

It's a real shame that a restocking fee doesn't apply in this case.

Eddyisgreat · Mar 23, 2012

Kinda like these hippies that bought extra iPads to fund a trip to Brazil:

(From SeattleTimes)

3bs · Mar 23, 2012

Why did they buy them in the first place if they planned on returning them? Were they not able to take them back to China or something?

RDowson · Mar 23, 2012

Wirelessly posted

If I was the manager I would refuse to refund them just for the lulz!

In the UK you don't have to refund something if there is nothing wrong with it. Many stores have a 14 day return policy. But that's all it is, a policy. Managers can and sometimes will overrule it.

3bs · Mar 23, 2012

RamboRab said:
Wirelessly posted

If I was the manager I would refuse to refund them just for the lulz!

In the UK you don't have to refund something if there is nothing wrong with it. Many stores have a 14 day return policy. But that's all it is, a policy. Managers can and sometimes will overrule it.

Why do they have the policy in place then? Is there a fine print saying that they have the right to refuse to return the money back to the customer if there is nothing wrong with the product? I've never had a problem like this in Ireland (The Republic) but then again I've never done what these chinese resellers are doing.

wikus · Mar 23, 2012

RamboRab said:
Wirelessly posted

If I was the manager I would refuse to refund them just for the lulz!

In the UK you don't have to refund something if there is nothing wrong with it. Many stores have a 14 day return policy. But that's all it is, a policy. Managers can and sometimes will overrule it.

Is that a law?

I find that kind of ridiculous.

Sykotic · Mar 23, 2012

3bs said:
Why did they buy them in the first place if they planned on returning them? Were they not able to take them back to China or something?

I imagine it's because there's more than enough supply available. They aren't able to demand a mark-up on them that offsets all the expenses they incur.

FNi · Mar 23, 2012

...and that's what you get for doubting Tim Cook's mad skills at locking down a supply chain.

RDowson · Mar 23, 2012

Wirelessly posted

3bs said:
RamboRab said:

Wirelessly posted

If I was the manager I would refuse to refund them just for the lulz!

In the UK you don't have to refund something if there is nothing wrong with it. Many stores have a 14 day return policy. But that's all it is, a policy. Managers can and sometimes will overrule it.

Click to expand...

Why do they have the policy in place then? Is there a fine print saying that they have the right to refuse to return the money back to the customer if there is nothing wrong with the product? I've never had a problem like this in Ireland (The Republic) but then again I've never done what these chinese resellers are doing.

I wasn't meaning Apple stores. I meant retail in general. They usually have the policy for good customer service.

slicecom · Mar 23, 2012

I hope they process the returns reeeeally slowly so they have to wait around for an extended period of time.

BJMRamage · Mar 23, 2012

They could have a 5 item return limit per day.

something to still accept them but make it a pain to do.
Track based on Driver's License or ID like Best Buy and pharmacies who can only sell X amount of allergy stuff.

3bs · Mar 23, 2012

RamboRab said:
Wirelessly posted

I wasn't meaning Apple stores. I meant retail in general. They usually have the policy for good customer service.

Yeah I didn't mean Apple stores specifically either since we don't have any here. I still don't get why they would refuse to give you your money back if you bring it back in time and in the same condition you bought it.

TimeArrow · Mar 23, 2012

Wirelessly posted

The China custom charge a higher import tax, as high as 130-140$. No surprise that they came to return. But surprised that those returners are young and pretty.

Kirsten Hollerd · Mar 23, 2012

I have a friend that works at an Apple Store and he said that they were dealing with unscrupulous resellers who returned shrink wrapped "New iPads" that actually had iPad 2's inside. Crazy.

McCarron · Mar 23, 2012

While the article and tipster said "new iPads" I am just guessing but these are likely brand new iPad 2s being returned (or exchanged for iPad 3?) that were purchased before the new model came out. That makes sense.

zen · Mar 23, 2012

I don't get it - is there a profit being made by the resellers here?

cshsia · Mar 23, 2012

McCarron said:
While the article and tipster said "new iPads" I am just guessing but these are likely brand new iPad 2s being returned (or exchanged for iPad 3?) that were purchased before the new model came out. That makes sense.

I'm the tipster

The returns were all new iPads. Most of them barely spoke English.

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If you look at eBay, after fees (ebay/paypal) and shipping, there's no profit to be made at all reselling iPads online.

Plus, Apple launched in HK on the same day, essentially shutting down demand for grey market export to HK.

These folks are just getting their working capital back. 30 ipads is a lot of cash committed.

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TimeArrow said:
Wirelessly posted

The China custom charge a higher import tax, as high as 130-140$. No surprise that they came to return. But surprised that those returners are young and pretty.

Young yes..... pretty.... well....

smali · Mar 23, 2012

Haha these idiots ****ing deserve it!

Pared · Mar 23, 2012

This article just made my day.

waynelee1981 · Mar 23, 2012

3bs said:
Why did they buy them in the first place if they planned on returning them? Were they not able to take them back to China or something?

they are not popular as ipad 2 in China, the new i pad 4g 64gb only selling for 6000 yuan which around $952, ipad 2 3g 64gb was selling 9000yuan years ago

perealb · Mar 23, 2012

Awesome. I wish there was a solution efficient like that for concert ticket scalpers.

MH01 · Mar 23, 2012

Wirelessly posted

RamboRab said:
Wirelessly posted

If I was the manager I would refuse to refund them just for the lulz!

In the UK you don't have to refund something if there is nothing wrong with it. Many stores have a 14 day return policy. But that's all it is, a policy. Managers can and sometimes will overrule it.

In the UK the Apple store has to refund your purchase within 14 days as thier policy stands . No the manager has no choice unless the goods are damaged.

For all online says all items can be returned within 14 days. That is all retailers.

MH01 · Mar 23, 2012

Wirelessly posted

The poster is wrong. Per apple policy thy have to refund.

And all online says have a 14 day return policy for all retailers.

gglockner · Mar 23, 2012

Apple tries to offer a premium experience with their products. These exporters can't offer an Apple-style buying experience, so it's in Apple's best interest to reduce the opportunities for the resellers. Worse, since some may be trying to scam Apple by returning an empty box, it would be reasonable for Apple to delay refund until they have inspected the returned items.

Lines of Resellers Returning New iPads at Fifth Avenue Apple Store

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