Wholesale Liquidation

Liquidation may seem like a bad thing but it is an excellent way to both make money and save money and salvage merchandise that may otherwise go unsold. That is because merchandise liquidation takes advantage of the huge amount of merchandise that is overstocked, returned by customers, or that gets sold during a store closing.

This merchandise gets bought by closeout liquidators who then resell it to secondary retailers, wholesalers, or other resellers by the pallet or the truckload. Those resellers then sell it to eager customers looking for top quality merchandise at a low price.

Since this merchandise is bought at a level well below the retail price, it can be resold to the secondary market at a low price, and then onto customers. Keep reading if you want to find out all the details of merchandise liquidation and how it can benefit you and your customers.

Where Do Liquidation Sales Come From?

Liquidated merchandise can come from a variety of different retail sources in a variety of different ways. No matter the source, retailers always sell their liquidated stock at lower than the MSRP because they need to get rid of it as soon as possible. That is because the liquidated stock cannot be sold and so the retailers need to make space in their warehouses for the merchandise that they can sell. These are the most common sources for liquidated merchandise.

Store Overstock

Stores sometimes buy too much of a certain product that does not end up selling as well as they thought it would. Other times, they might have seasonal stock that does not get sold before the new seasonal merchandise comes in. Whatever the case may be, the retailers do not want this excess stock taking up space in their warehouse.

So, that surplus merchandise gets sold to closeout liquidators at a low price since the retailers need to get rid of it as quickly as possible. The merchandise obtained from store overstock is usually brand new, so it will be in excellent condition.


When a store ends up closing down, or moves to a different location, it has to sell off all, or most, of its inventory. When that happens it is called a closeout sale, a clearance sale, or sometimes, a fire sale. Regardless of the terminology, the goal of the store is the same: to sell off all of its merchandise. This merchandise gets snapped up by liquidation specialists to be sold to secondary resellers.

Customer Returns

Customers return items for all sorts of reasons and when they do, the item they previously bought cannot be resold. That is because it is now classified as second-hand goods, and most stores are obligated to only sell brand new merchandise. So when a customer suffers buyer’s remorse, the item they return gets stuck in storage.

That is until all the returned merchandise gets bought by reverse logistics companies so that it can get sold to secondary resellers. The merchandise obtained this way may not be brand new but the liquidation companies make sure that it is in good condition and is fit to be used again.

What is the Quality of Closeout Liquidations?

The quality depends on the method with which the merchandise was obtained. As you read in the previous section, some liquidated merchandise is brand new. Even when the merchandise is not new it is guaranteed to be in working condition.

One big advantage of merchandise that isn’t new is that it is sold at even lower prices than the other liquidated merchandise, which is something the most frugal customers can appreciate. These are the types of conditions you can expect to find liquidated merchandise.

Brand New

Merchandise obtained via overstock or store closeouts are usually brand new and in their original packaging. There is no difference between this product and one that can be bought in a store for full price. As a result, they tend to command the highest prices out of all liquidated merchandise. Another advantage shared by brand new products is that they will often have their original warranties still active.

Like New

These are products that have been opened and handled by former customers, but are still in excellent condition, with no blemishes, imperfections, or signs of wear and tear. Products that are like new are generally customer returns. Since most stores have a return policy which states that the product needs to be returned in a short amount of time after purchase, the item is unlikely to be in poor condition. In any case customer returns are tested to make sure that they are fit to be used again before the are resold.

Grade A Refurbished

In some cases, a product needs to be repaired or reconditioned before it can be used again. Products have different levels of refurbishment under which they are classified. Grade A is, of course, the highest and it means that the product is like new and in near-mint condition. It might be in such good condition that the average person cannot tell the new item from the refurbished one. Grade A refurbished items may come in their original packaging not come in the original packaging. However, in the cases where they do not, they will have all the necessary accessories (if applicable) and the original documentation.

Grade B Refurbished

The products in this grade will have noticeable, but slight, defects, and will be in a working or usable condition. In the case of electronics or hardware, there might be scratches or scuffs on the casing. The original packaging may not be available, and if it is, then it may not be in the best condition, in which case, the item will be packaged in a new, plain box.

Where clothing is concerned, there might be slight stains, discolorations, rips, or tears, all of which can be easily cleaned or fixed. Once those fixes have taken place the item of clothing will look as good as new. A Grade B refurbished item is a great way for customers to save money, while still getting a product that looks good and functions as it should.

Grade C Refurbished

Grade C items will have the most visual imperfections and signs of use. You can expect to see prominent scratches, dings, and other evidence of heavy usage when it comes to electronics and hardware. However, you can forget about the original packaging since it is either long gone or in extremely poor condition. These products are certain to be in working condition even if they may not always look that way.

As for clothes, Grade C clothing may not be sold because, even though it can be worn, the quality may not be good enough for most customers. Instead of being sold, Grade C clothing usually gets contributed to people in need.

What Kinds of Overstock Liquidation Do You Carry?

We carry a wide variety of products in different categories, so no matter what kind of products you are interested in reselling, you are sure to find it with us. Here are the products you can get for your store.

Cosmetics:If you are interested in selling makeup, then we carry a wide range from all the top retail brands. You can find everything from lipstick, lip liner, rouge, concealer, foundation, and more.

Apparel: You will find clothing in every style and category with us. There is clothing for men, women, and children. There is clothing for all four seasons. There is underwear and outerwear. No matter what kind of apparel you need, you will find it with us.

Shoes: A wide variety of apparel needs a wide variety of shoes to go with them. We can supply resellers with shoes for adults and children from all the top brands. We have shoes for exercise, comfort, work, and dressing up. All are ready to wear and in great condition.

Handbags: We carry handbags to serve all kinds of needs. Whether they are used to complete an outfit, for practical purposes, or a combination of both, we carry a wide variety of styles from some of the top brands in the business.

Housewares: These include various accessories that offer ease and convenience to families. You will find coffee-makers, blenders, air fryers, toaster ovens, slow cookers, and other modern conveniences that make life easier. You can also get items like rugs, small towels, lamps, and more. Everything that is needed to make a house a home.

Home Improvement: If you are interested in making the home an even better place, then our pallets of home improvement products are what you need. Each one includes tools, building supplies, kitchen remodeling supplies, bathroom remodeling supplies, outdoor supplies. Essentially, everything needed to make a home better on the inside or out.

Toys: We haven’t forgotten about the children. There are a wide array of products to keep the little ones entertained; from stuffed animals to water guns to costumes, there is something here for every child to enjoy.

Bedding: Our selection of sheets, pillow cases, comforters, bed spreads, duvets, and more will make sure that any customer who buys them gets a good night’s sleep.

General Merchandise: Here, you will find miscellaneous items like, tissue boxes, cough medicine, aspirin, condoms, allergy medication, and lots more. These boxes and pallets of general merchandise are a great way to round out your selection of merchandise.

How Do I Make Money From Wholesale Liquidation?

Since you are providing customers with high quality merchandise at low prices, you have a pretty good chance of making a profit. However, if you want to take your business to the next level and maximize your profit, then there are some practices that you should follow.

Location, Location, Location

Your first priority should be to decide where you are going to set up your business because that will be a determining factor in the amount of merchandise you plan to sell. If you are opening up a physical store, then you will need the warehouse space to store some of your merchandise. The renting of a warehouse will also have an impact on your overall budget.

An online store doesn’t necessarily have those concerns since you can store the merchandise in your home. You will need to set up an online store, but there are several different e-commerce solutions that can help you. You could also set up a stall in a flea market, which obviates the need for a large storage space.

Whatever decision you make, you need to make sure that you get the name of your store out there. Otherwise, the efforts of buying that liquidated merchandise and setting up a store will have been for naught.

Provide Extra Services

Selling low cost merchandise is great, but if you can provide something extra, then you will have a lot of loyal customers who are willing to spread the good word about your store. If you are good at putting things together, then you can help to assemble complicated items for your customers. If you are a burgeoning fashionista, then you can provide style advice. Good at repairs? Help to fix any items your customers break. Going the extra mile can get you extra profit.

Leverage Your Social Media Presence

Social media is great for connecting with customers in different ways. You can get feedback from them that allows you to know what you are doing right and what can be improved. You can also give them a heads up on any new inventory that you receive. Social media can also be used to keep your customers apprised of any sales, deals, or bargains you are running.

Use Special Offers on Occasion

Since your prices will already be lower than the retail average, you do not need to offer sales. However, doing things like offering a discount when someone buys a certain set of items together will go a long way to making your store more appealing.

Merchandise Liquidation Is a Great Way To Make Money

With a wide range of products available at bargain basement prices, it is easy to see why buying and reselling liquidated merchandise can be so appealing. Plus, there is the fact that there will always be a steady flow of stock to keep your business afloat. You get to foster a loyal customer base attracted by the lure of low-priced items, all while spending relatively little yourself. If that sounds like a business plan that appeals to you, then peruse the pallets and truckloads of liquidated merchandise that we have to offer; once you begin to sell liquidated merchandise, you will wonder why you waited so long to get started.