Does Target sell its excess items on eBay and Poshmark?

Bullseye Deals e-commerce accounts offer very little explanation beyond the products themselves. The eBay store description simply says, “Resell – Reuse – Recycle.” But they offer a wide range of products that you would buy at a big box store, from underwear to housewares to children’s toys. Some offers are valid for Target’s own brand lines, such as A New Day, Boots & Barkley and Casaluna. These items are typically listed as new, open box, or used for less than the price they were originally sold for at Target. For example, a floor lamp listed as new on Bullseye Deals costs $21.99 compared to the price of $80 on Target.com.

It is not uncommon for a retailer to unload excess inventory, which is called a salvage in the industry. It’s actually common. Stores like TJ Maxx and Burlington source products at discounted prices by partnering with retailers and brands. Similarly, reverse logistics companies exist to help consumer-facing brands deal with excess products that cannot be put back on shelves, such as returned or discontinued products. Often, these companies buy excess inventory in bulk from major retailers and then find ways to resell it themselves, either by selling entire pallets of product or by entering into dyeing agreements with retailers such as junk stores.

Bullseye Deals technically falls into the latter category, although it is branded in a way that at least suggests an affiliation with Target. Sources tell Modern Retail that all offers are for damaged goods from Target purchased through reverse supply chain services company Liquidity Services, Inc.

A Target spokesperson confirmed to Modern Retail that the company that runs the Bullseye Deals account buys and sells salvage items from Target. Liquidity Services, Inc. did not respond to a request for comment.

A big problem for retailers is inventory that cannot be sold. According to eMarketer estimates for 2023, total retail profits have reached $613.94 billion, accounting for 8.5% of total retail sales. However, this does not mean all the products that the retailer can offload because it can no longer sell them.

Retailers are often unable to put returned products back on shelves if, for example, the box is opened or the product is lightly used before being returned. Additionally, when labor and other costs are taken into account, it may not be cost-effective for retailers to put certain items back on the shelf. For a company like Target — which allows customers to return items within 90 days for a full refund — it’s almost certainly swimming through damaged goods and trying to find ways to avoid throwing them away.

Matt Miller, president and chief operating officer of Mac Wholesale, said there are examples of retailers selling excess merchandise using their own brand. Mac Wholesale buys discontinued inventory from brands and sells it through other channels, such as retail, at lower prices. Miller pointed to Best Buy, which has an outlet program in which it sells refurbished, clearance and unopened electronics. Similarly, both Macy’s and Nordstrom have off-price locations such as Backstage and Rack.

Miller, however, had never heard of retailers opening e-commerce seller accounts to resell goods — nor had he seen reverse logistics companies build individual online storefronts to mimic the brand of the retailer they were purchasing from.

What piqued his interest in this Target example was the fact that Bullseye Deals seemed to offer all kinds of products, prices and terms. For example, Miller found a used Luigi plush toy for about $11. “Most retailers don’t face these issues,” he said. And while it’s true that Target doesn’t itself list plush toys, the company it works with does – and does so for tens of thousands of products on platforms like eBay.

Target does not control Bullseye Deals inventory, but is aware that its reverse logistics partner does. According to Miller, it’s a smart way for a retailer to handle goods that would otherwise end up in a landfill. Especially for a company like Target, which owns brands it probably wouldn’t want to see in other retailers like TJ Maxx, “it allows them to control the liquidation of their own private label brands,” Miller said.

Similarly, for other brands selling at Target, if Target decides to stop selling an item, an e-commerce account like Bullseye Deals will likely be more enjoyable than seeing the item in the clearance section. If a brand tries to sell to other retailers, “they’ll ask, ‘What’s wrong if Target is releasing this?'” Miller said.

Although Bullseye has been around for years, Miller isn’t surprised that it has now become a popular shopping destination. “Most off-price retailers who would never have considered off-price retail five years ago are now considering it,” he said.

Meanwhile, Target – with the help of a middleman – is essentially doing it in the shadows. Miller, for example, was shocked that he hadn’t seen the Bullseye Deals account until now. “I’m surprised it hasn’t been more visible with so many transactions and so many opinions,” he said.