Warehouse Operations Inventory Processing

Open the Cargo application on your iPhone and log in with your credentials. After successfully logging in, you will land on the app’s home dashboard. Locate and tap the Operations button on the home screen, and then proceed to click on the processing tool.

Pick the Right Mode (Drop-Down Menu)
Use the drop-down next to the scan box to choose the correct mode based on how your pallet is tracked. Picking the right option makes sure the load can be closed out correctly after everything is processed.

• Load ID – Choose this if you are working with a full trailer or entire load.
• Pallet ID – Choose this if you are scanning and tracking individual pallets.

Scan the orange label that is placed on the staged inventory pallet. The orange label will come in one of two forms:

• Pallet ID Sticker: A Pallet ID sticker is printed and affixed to a pallet when the Material Handler receives the load through the “Direct to Staging” function, which is used to tag and store pallets when they cannot be processed immediately. As an Inventory Processor, you will scan 1 label from every pallet brought to your station as each pallet has a unique Pallet ID sticker containing a unique barcode. A pallet is considered done once you have processed all of the inventory from the pallet and a new pallet has been dropped off/staged at your station. At this time, you should discard your previous Pallet ID Sticker into the trash, place the new sticker into the magnetic clip and scan it into the Processing application within Cargo.
• Load ID: A Load ID sticker is printed and affixed to a pallet when the Material Handler receives the load through the “Direct to Processing” function, which is used to tag pallets, speedpacks or other containers with inventory that is intended to be processed immediately (not stored for future processing). As an Inventory Processor, you will scan ONE TIME only, so long as you are being presented with pallets from the same Load (although, it does not hurt anything to scan subsequent Load ID stickers if you choose to; it is simply an unnecessary step). You are only required to scan a new Load ID Sticker if a new pallet is given to you by a Material Handler containing a different Load ID. If in doubt, request Manager assistance.

Take the orange label off of the staged pallet and hang it from the magnetic clip at your station. If you do not have a magnetic clip at your station, request one from your Manager.

Orange labels should NOT be stuck to rack uprights, mobile media carts, or other company assets. Storing orange labels in the magnetic clips allows Area Managers and other leaders to efficiently locate them when required and keeps equipment looking clean and sticker/residue free.

Again, Pallet ID Stickers should be discarded immediately upon moving on to the next Pallet & Pallet ID Sticker. Load ID Stickers should remain on your magnetic clip for the duration of the load until a pallet from a new load is presented.

The orange sticker that is on your magnetic clip should ALWAYS correspond with the inventory that you are currently working at your station.

Cleanliness Tip:

At the end of your shift, take a moment to:

• Check your station
• Throw away any old or unused/duplicate orange labels
• Keep your area clean and free of aged so labels don’t get mixed up later

• Put the box on a flat, stable surface (like your table or station).
• This keeps the items from sliding, tipping, or falling out.
• Use the approved tools (box cutter, safety knife, etc.) provided by management.
• Do not use random or personal tools. If you do not have the required tools to perform the job, please escalate to a Manager immediately and request them.
• Carefully cut open the box.
• Cut slowly and stay in control. Always cut away from your body to minimize the chance of injury.
• Once open, remove all packing materials, such as:
• Tape
• Bubble wrap
• Foam
• Paper
• Make sure the item is fully visible and easy to access before moving to the next step.

Find the barcode on the item. This could be a UPC, LPN, ASIN, X00, or ISBN. Use your scanner to scan the barcode into the “Identify” field. Make sure it beeps/scans correctly before moving on.

After scanning, look at the screen and make sure everything matches the item in your hands:

• Category: What type of item it is. This field contains a finite list of predetermined categories; select from list.
• Lead Description: Listing name/title of the item being processed.
• Retail Price: The retail price established by the original retailer from which Nellis Auction acquired the item.
• Stock Photo: A professionally edited photo of the item used in the original retailer’s listing.
• Ask yourself: “Does this screen match what I’m holding?”

If the Item DOES NOT Match or there are major differences:

• Stop and do NOT continue processing the item using normal procedures.
• Instead, follow the LPN Exception Workflow in the Common Exceptions section of this document.

If the Barcode Details are Wrong:

• Click the warning triangle (!) next to the Identify field to report it. This helps flag bad or incorrect item level data to help improve our data over time.
• (Note: This feature may still be in progress.)

Always take a few extra seconds to double-check —

Catching a mismatch early prevents bigger mistakes or rework later.

Callout box: Once you begin processing an item, the Item Timer in the upper left of the form will begin counting down. The timer is program-specific and is designed to help you stay on pace with your program's processing goals. If the timer reaches zero, it will continue into negative time as a visual reference only — no system action is triggered. Use the timer as a guide to maintain your processing speed throughout your shift.

If the item is age-restricted (see applicable product categories below), toggle the Adult Item 18+ switch in the upper right corner of the form.

This flag is used to identify items classified as adult content within the system. When applied, it ensures these items are segregated from general inventory. By enabling this flag, the item is automatically categorized as an adult-specific listing group. This helps maintain clear organization and prevents adult items from being unintentionally mixed with general products.

• Tobacco & Nicotine Products — Cigarettes, cigars, chewing tobacco, nicotine pouches, vaping devices, e-liquids, and related accessories
• Alcohol — Beer, wine, liquor, and any other alcoholic beverages
• Adult Toys & Novelties — Sexual wellness products, adult novelty items, and related accessories
• Sexually Explicit Content — Adult magazines, videos, books, or any media containing explicit material
• Weapons & Weapon-Adjacent Products — BB guns, airsoft guns, pellet guns, slingshots, tasers, pepper spray, and similar items that may be age-restricted depending on local regulations
• Firearms & Accessories — Ammunition, gun parts, and firearm-related products
• Gambling-Related Products — Lottery tickets, gambling accessories, or items associated with games of chance
• Drug Paraphernalia — Pipes, bongs, rolling papers, and similar items where restricted by law
• Mature-Rated Media & Games — Video games, films, or other media with an M (Mature) or NC-17/R rating intended for adult audiences only
• Any Other Age-Restricted Items — Products regulated or restricted to adult consumers (18+) by law or company policy

If you have more than one of the exact same item, you need to turn on Multiple.

• “Exact same” = same item, same brand, same size, same everything.

Tap the Multiple button on your screen.

• It is located between the 18+ button and the Trash button.

Enter the Quantity

• After turning on Multiple, enter how many of that item you have.
• Count carefully before entering the number.

Maximum Limit (IMPORTANT)

• The system (Cargo) allows up to 10 items at one time.
• If you have more than 10, you must split it into smaller groups:
• Example:
• 14 items = submit 10 first, then submit the remaining 4

Complete Multiple Item Submission (If Applicable)

If you turned on the Multiple button earlier:

• A new screen will pop up after you hit submit.

Enter the Quantity

• Type in how many of that item you have.
• Count your items carefully before entering the number.

Answer each grading question to accurately describe the item. The system calculates a 1–5 star rating. Use the Perfect Item shortcut button only when all conditions are met.

1. Condition

Look at the item as a whole. Ask yourself: Is it new, used, worn, or rough?

Pick the option that best matches what you see and use your best judgement.

2. Damage — Note any visible damage to item or packaging.

Check for any visible damage, including:

• Scratches
• Cracks
• Dents
• Tears in packaging

If you see damage → mark it accordingly: Major or Minor

If not → Mark None

3. Missing Parts Default answer is NO.

Only choose YES if you are 100% sure something is missing.

Choose Partial Set if:

• It is part of a multi-box item
• Example: “Box 1 of 2”

4. Functional

The default answer is YES.

If possible, test the item to ensure it turns on. This is not intended to test that all of the item’s intended features fully function as our testing procedures are limited to power & basic functionality only. Only select NO if you are sure it does not work, if the item does not turn on.

5. Packaging

Check if the item has its original box/manufacturer packaging.

Select the option that matches what you see. If you are not certain if the product packaging is original, default to Yes.

6. Assembly Required

Ask: Does this item need to be put together?

Select YES or NO based on your best judgement.

7. Item Size — Determine by physical handling:

• Small: Pick up with one hand (less than 12 inches)
• Medium: Requires two hands (less than 24 inches)
• Large: Hard to lift overhead (over 24 inches)
• Extra Large: Team lift required due to size and/or weight

⚠ Quick Tip:

When in doubt, slow down and double check — accurate grading minimizes returns and provides a great customer experience.

Find the Inventory Number sticker for the item.

• Make sure the Inventory Sticker that you apply to the box matches the inventory sticker that you scanned into the processing application. This is critical to prevent inventory mismatches later on.

Place the Inventory Sticker in the Correct Spot on the Box

• Apply the Inventory Sticker to the small side of the box.
• This is the shorter side (not the long front or back).
• It should be the side that will be easy to see when stored on the shelf.
• Example: If a box is 10” x 20” x 5,” the inventory sticker should be placed on the 5” face.

Prep the Surface

Before placing the sticker:

• Make sure the surface is clean and dry
• Wipe off any dust, dirt or debris to ensure a strong stick

⚠ Quick Tip:

Do not place stickers over:

• Other barcodes
• Important labels
• Open seams or edges
• Wrapped around corners or edges

👉 Bad placement can make items hard to scan or cause labels to fall off.

Take the required number of photos based on the item's retail price tier. Refer to the Processing Photos Reference section.

• Stock Photo — from the Amazon listing or other reliable source
• Live Photo — of the actual item. CARGO WILL NOT ALLOW SUBMISSION WITHOUT AT LEAST ONE LIVE PHOTO.
• Box Photo — with the Inventory Number label visible in the shot
• Damage Photos — additional photos of any deviations from a perfect item. For example, if you marked it used or damaged, include a photo to help tell the story to the customer.

Extra Photos for Electronics

If the item is an electronic device, you also need:

• Serial Number Photo
• Take a picture of the serial number on the item itself
• Do NOT rely on just the box. Open the box and look at the item’s serial number.
• Power-On Photo
• Show the item turned on to prove that it is functional

Upload photos in the Capture section in this order:

• Go to the Capture section on your screen.
• Upload your photos in the correct order (see below).

Upload in This Order (IMPORTANT)

• Stock Photo (FIRST)
• Upload the photo from Amazon or another trusted site first (if not already ingested from initial barcode scan).
• Live Photos + Box Photos (SECOND)
• Upload all photos of the actual item
• Include the box photo with the Lot Number sticker
• Damage Photos (LAST)
• Upload any photos showing damage at the end

Check Your Photos Before Submitting

• Make sure all photos are:
• Right-side up (not sideways or upside down)
• Clear and easy to see
• Showing the full item
• Re-Order Photos:
• If you do not like the order of your photos, you can click the photo you want to re-order and then click the photo where you want to swap positions with. The photos will immediately re-order.

IMPORTANT RULE

🚫 The system will NOT let you submit without at least one live photo

Use Clerk Comments to add extra details about the item. This helps give more information to buyers, pickers, and the next team. Only add comments when there is something important to note.

Add a comment if you see or know any of the following:

• Damage — Item
• Example: “Scratch on front”, “Crack on side”
• Damage — Packaging
• Example: “Box torn”, “Box heavily damaged”
• Missing Parts
• Only if you know what’s missing
• Example: “Missing remote”, “No charger included”
• Size
• If the size might not be obvious
• Example: “Oversized”, “Very small item”
• Serial Number
• If needed for tracking
• Example: “SN: 123456789”
• Expiration Date
• For items like food, supplements, etc.
• Example: “Expires 05/2026”
• Unable to Test
• If you could not test the item
• Example: “No power cord to test”
• Factory Sealed
• If the item is still sealed
• Example: “Factory sealed, unopened”

• Before submitting, take one last look at everything:
• Item info
• Photos
• Quantity
• Grade survey
• Comments

Make sure everything is complete and correct.

If You Made a Mistake

• Tap the Clear Form button
• This will erase EVERYTHING you entered
• You will need to start over from the beginning

⚠ Use this carefully — nothing will be saved

NOTE: If you manually entered item information and could not identify the item, a manager MUST review and verify the listing BEFORE you Submit.

The ONLY reasons to trash an item:

• Hazardous or Recalled — Item presents a health or safety risk that cannot be neutralized by normal handling. Trash if: the item is on an active recall list; packaging is compromised on a chemical product (leaking cleaning solution, punctured aerosol, damaged pesticide container); baby formula, infant food, or infant medication is expired; a space heater, electric blanket, or power strip has visibly damaged wiring or has been subject to a fire-related recall; a battery is cracked, swollen, or leaking. If you are unsure whether an item has been recalled or whether the hazard qualifies, do not trash it — set it aside for a manager to verify.
• Severe Damage — The item cannot perform any version of its intended function AND has no plausible resale pathway, including as-is, for parts, or for scrap. Damage must be objectively verifiable. Trash if: a large appliance (washer, dryer, refrigerator) has been structurally crushed and cannot be moved or operated in any capacity; a piece of furniture has collapsed completely and no individual component has standalone value; a TV or monitor screen is shattered into fragments with the panel destroyed beyond any display function and the board has no parts value; a small appliance has melted or burned through (e.g., a blender or air fryer that caught fire); glass items are shattered into sharp fragments with no remaining aesthetic or functional value. Cosmetic damage, dents, scratches, cracks, or items that simply do not power on do not qualify — these are listed as-is.
• Missing Core Component — The part that is missing is the mechanism that defines what the item fundamentally is, and without it the item has no function and no parts value. Trash if: a blender or food processor has no motor unit and the housing alone has no scrap or parts value; a TV or monitor has no screen and no board components with resale value; a power tool has no motor and the shell is not sought after for parts; a lamp or light fixture has no electrical socket and the frame has no aesthetic resale value. If the missing part is a cord, remote, cable, lid, tray, or accessory — that does not qualify. If you are unsure whether what is missing is a core component or an accessory, escalate to a manager.
• Contaminated Item — Item has been exposed to biological or environmental contamination that cannot be resolved with basic cleaning and poses a genuine risk to handlers and future buyers. Trash if: upholstered furniture (mattress, sofa, chair, pillow) has visible bodily fluid staining that has penetrated the material; any soft item (bedding, clothing, stuffed animals) shows evidence of rodent activity, insect infestation, or bed bugs; a porous item (foam, wood, fabric) has active mold growth that has penetrated the surface and cannot be wiped away; any item has an odor so severe (smoke saturation, urine, animal waste) that it would be unreasonable to expect a buyer to remediate it. Surface dirt, dust, mild smells, or mold on hard non-porous surfaces (glass, metal, plastic) that can be wiped clean do not qualify.

Why we don’t throw items away:

• Almost everything can have value – Even items that look cheap or have no data might sell to the right customer. Throwing them out means lost revenue.
• Stay consistent – Everyone should follow the same rules. If people decide on their own, it causes confusion, mistakes and inconsistency in our processes.
• Track everything – Every item matters. Throwing things away without approval creates inventory issues and lack of accountability.

Manager Approval Requirement:

• Do NOT throw any item away without manager evaluation and approval.
• Once an item is considered trash, it must be reviewed by a manager.
• If the manager approves the item to be trashed, an “Inspected Trash” sticker must be placed on the item.
• The sticker must include:
• Manager initials
• Date inspected
• Reason for trashing:
• Safety
• Hygiene / contamination
• Damaged beyond use
• Expired

Expectations:

• Do NOT throw items away on your own.
• If unsure, ask a supervisor or manager.
• Focus on saving and selling as much as possible.
• Use the grading options available to document all damages within each item before considering it trash.

• After the item is fully processed and submitted, it’s time to close it back up.

Close the Box

• Fold all flaps down properly
• Make sure everything is lined up and closed flat

Tape the Box

• Use the approved tape at your station
• Tape along the main opening seam of the box
• Add extra tape if needed, especially if:
• The box feels loose
• The item is heavy
• The box is damaged or worn

Make Sure It’s Secure

• Check that:
• The box is fully closed
• Nothing can fall out
• The tape is stuck down firmly

⚠ Quick Tip:

If you wouldn’t feel comfortable picking it up by the box, it probably needs more tape.

👉 A properly sealed box prevents damage and keeps items safe during storage and prevents safety incidents.

After processing an item:

• The Inventory Processor Submits the item on Cargo.
• The Processor pushes the item down the belt or places it directly into a PutAway Speedpack (depending on your station setup and item size)
• A Put-Away team member downstacks the belt and collects the processed inventory.
• Items are placed into PutAway Speedpacks, Carts or Dollies depending on size and transported to a warehouse storage rack.

PutAway Speedpacks, Carts and Dollys are normally located next to the processing tables or conveyor belts for easy access. Speedpacks can be identified by the “PutAway” sign and blue tape labeling.

Use the correct container or equipment based on item size:

• Small Items (S) → MUST be placed into a PutAway Speedpack. Processed not putaway items are then staged in the white and green taped zones.
• Large/Medium Items (L/M) → May be placed into a PutAway Speedpack or moved using a cart/doll. Processed not putaway items are then staged in the white and green taped zones.
• Extra Large Items (XL) → MUST be moved using a cart or dolly and should NOT be placed into a Speedpack. Processed not putaway items are then staged in the white and green taped zones.

Processor Expectations:

Inventory Processors are only responsible for moving items far enough to clear their workstation for the next item.

• Do NOT take inventory to storage racks
• Do NOT leave items blocking walkways or work areas
• Continue processing the next item immediately after clearing your station

Put-Away employees are responsible for transporting, staging, and storing inventory in warehouse rack locations.

⚠ Quick Tip:

Keeping the staging area clean and organized helps the Put-Away team work faster, prevents damaged items, and keeps walkways safe for everyone.

Utilize the Wix site to help identify your correct box/pallet type.

• https://levi521.wixsite.com/nellis-variety-box/small-box

First, figure out what you’re working with:

• Box or Pallet
• Then choose the correct type:
• Small Box
• Medium Box
• Expired Food Box
• Apparel Medium Box
• 4-Foot Pallet
• 6-Foot Pallet
• Apparel 6-Foot Pallet
• TV Pallet
• If you’re unsure, make your best guess based on size and contents or escalate to a Manager for review.

Step 2: Choose Your Building

• Select your facility location (example: HOME or your assigned warehouse).
• This ensures the item gets tracked correctly.

Step 3: Generate Load ID

• Once facility location has been selected, your Load ID will be generated
• Enter your load ID to your Processing page to begin creating your No-Sale item.

Step 4: Create the Listing Info

Use the standard info below (copy/paste style):

• Category: Bulk and Mixed Items
• Lead Description:
  Nellis Variety Box: Small | See Notes for Details
• Retail Value: $350
• Boxes - Require photos by layers of items added
• Pallets - 3 photo requirements - add photo of pallet and 2 photos of any visible product from above.

Step 5: Set the Condition

Always mark no-sale items like this:

• Condition: Used
• Damage: Minor
• Missing Parts: Yes
• Functional: Untested
• Packaging: No
• Assembly Required: Yes
• Item Size: LARGE

Step 6: Add Clerk Comments (Important)

Clerk Comments, Copy and Paste based on the box size selected:
“Box Size: Approx. 20” x 20” x 15” | Why bid on one item when you can score a mix of unique finds in one go? Each small variety box contains around 20-50 uninspected items, the same types of products we regularly sell on auction. Sourced from return centers, items may be new or gently used, with average retail values under $25. Every box is packed with unique finds and unbeatable value. | Due to bundling items into one sellable unit, Nellis Auction reserves the right to reject return requests. Boxes that are clearly intact and with no missing items may be considered for return, subject to local management discretion.”

Step 7: Final Check Before Sending

✅ Correct box/pallet type selected

✅ Correct building chosen

✅ Description added

✅ Condition set

✅ Comments included

✅ Photos added

Direct-to-Liquidation (DTL) UPS Amazon Returns Process

Overview

DTL (Direct-to-Liquidation) is a UPS Amazon Returns program where return packages are sent directly to Nellis Auction facilities.

Each month, one DTL Load ID is assigned for all DTL inventory. This Load ID must be used when processing all approved DTL packages for that month. The DTL load ID will surface in load control/loads for close out reports, and may look like a load for potential closure if direct to processing is used.

DTL packages are processed the same way as regular inventory, with a few important differences:

• The package must be verified as an Amazon Return referencing the “APL_ Amazon Returns” reference in the Ship To line of the shipping label.
• Customer address information must be removed
• Team members must watch for misshipped packages intended for other businesses or office suites in the building

DTL Receiving Setup

UPS will arrive in a box truck as a live load or UPS will bring a 53’ trailer and drop.

• Stage empty pallets to hand stack and hand wrap or stage Gaylords in the designated DTL receiving area
• Create pallet stickers as the product is unloaded and build pallets using the current monthly DTL Load ID. Processing Area Manager will provide Processors with this information. (Brian L)

NOTE: DTL Load IDs change monthly. Always verify you are using the current month’s Load ID before processing inventory. If in doubt, ask your Area Manager.

Verify the Package

Before processing any package under the DTL Load ID:

• Confirm the package is an Amazon Return referencing the “APL_ Amazon Returns” reference in the Ship To line of the shipping label.
• Watch carefully for misshipped packages or deliveries meant for other companies or office suites
• Pay close attention to shipping labels showing suite numbers, business names, or office locations
• “APL_ Amazon Returns” on the Ship To line.
• Example: “4031 MARKET CENTER DR ST 303”

IMPORTANT: Not every UPS package delivered to the building belongs to the Amazon DTL program. Associates must verify packages before processing to avoid inventory errors.

If a package appears questionable or belongs to another business:

• Set it aside
• Notify leadership or a supervisor for review

Remove Customer Information

Before processing the item:

• Cut off, or remove the customer return address label
• Ensure no customer personal information remains visible on the package
• Ensure no packing slip containing customer information is left inside the box

This helps protect customer information during processing, storage, and auction preparation.

Processing the Inventory

Once the package has been verified as a valid Amazon Return:

• Remove the customer address label
• Open the package and identify the inventory inside
• Remove packing slip if present
• Process the item using the current monthly DTL Load ID
• Use any available barcode on the inventory to process the item normally through Cargo
• Process and grade the item using standard inventory procedures
• Stage the completed inventory using normal put-away procedures

At this time, processors cannot scan the outside “1Z” UPS tracking barcode or RMA barcode, or any UPC available directly into Cargo for automatic item details. Associates must continue using available item barcodes from inside the package until future system integrations are implemented.

Expectations

• Always verify packages before processing
• Do NOT assume all UPS packages belong to DTL
• Use the correct monthly DTL Load ID
• Remove all customer address information
• Escalate questionable or misshipped packages to leadership
• Process DTL inventory using standard processing procedures once verified

The goal is to process DTL inventory quickly while maintaining accuracy and protecting customer information.