📦 Liquidation
Reseller Guide
Types of Liquidation
| Type | Description | Condition |
|---|---|---|
| Customer Returns | Items returned by customers for any reason | Mixed (some broken, some perfect) |
| Overstock | Excess inventory that didn't sell | Usually new/good |
| Shelf Pulls | Items removed from shelves (seasonal, clearance) | Good, minor damage possible |
| Salvage | Damaged packaging, minor defects | Lower quality, lower price |
| Manifested | Includes list of contents and retail values | Varies, but you know what's inside |
| Unmanifested | Mystery boxes—no content list | Gamble (high risk) |
Major Liquidation Sources
- Liquidation.com: Large variety, auction format
- B-Stock: Direct from retailers, requires business license
- BULQ: Smaller lots, good for beginners
- Direct Liquidation: Major retailer returns
- BoxFox: Mystery boxes, beginner-friendly
- 888 Lots: Smaller lots, various categories
- Via Trading: LA-based, truckloads available
- Quicklotz: Clothing-focused liquidation
The Reality Check
Most people lose money on liquidation. Here's why:
- Returns are returned FOR A REASON (broken, missing parts, wrong item)
- Testing and sorting takes significant time
- Shipping costs eat into margins
- Storage becomes a problem quickly
- You're competing with experienced buyers
⚠️ Golden Rule: Never buy unmanifested liquidation as a beginner. You WILL lose money. Start with manifested lots where you can calculate potential profit before buying.
The Math
Before bidding on ANY lot, calculate:
- Manifest value: Add up retail values of all items
- Realistic sell-through: Assume 50-70% of items sellable
- Average sell price: Typically 30-50% of retail
- Fees: Platform fees (eBay ~13%, Amazon ~15%)
- Shipping: Your cost to ship to buyers
- Time: Testing, cleaning, listing, shipping
Example: $1,000 manifest, 60% sellable = $600 saleable goods. At 40% of retail = $240 revenue. After 13% fees = $209. Is it worth it for $200 revenue?
Best Categories
- Home goods: Lower return damage rate
- Clothing: Rarely "broken," mainly wrong size returns
- Toys: Seasonal, good margins
- Small appliances: Testable, repairable
Avoid as Beginner
- Electronics: High return damage, testing required
- Furniture: Shipping nightmare, damage common
- Large appliances: Returns are often broken
Success Tips
- Start small: Buy small lots to learn before scaling
- Stick to manifested: Know what you're getting
- Factor ALL costs: Shipping TO you, shipping FROM you, fees, time
- Test everything: Before listing any electronics
- Have a plan for unsellables: Donate, recycle, or bulk sell
- Track religiously: Know your actual profit per lot
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