Making Purchases in the Liquidation Closeout Marketplace

Liquidation Marketplace

Currently, excitement being stirred up around wholesale secondary market goods such as liquidation closeout, liquidations, shelf pulls and customer-returned merchandise. eBay as well as Amazon sellers usually get eager to acquire brand-name products at extremely low prices. Reselling liquidated goods can give way to high profits. There is also a hurdle that must be conquered. Based on personal experience, many sellers in the marketplace are jumping in head first without completely understanding:

  • What is liquidation closeout?
  • What are closeouts goods?
  • Why do goods go for liquidation?
  • The condition or type of goods that are appropriate for the respective reselling channels
  • Where and who to purchase liquidated products from?

Based on data gathered from a recent report, retail consumer goods that flow through the secondary market wholesale and liquidation closeout came to an overall value of $280 billion. This market gives you and me the chance to buy trucks and pallets of brand-name products at extremely low prices. When going on the hunt for products within liquidation closeout marketplace, one needs to realize that liquidated products are classed and sold under certain conditions.

Liquidation closeout conditions

  • Returned Merchandise. Customer returns are the products a customer buys and returns back to the store. Several factors help determine the working percentages on customer return loads. Store of origin and seasonality are some of those. A common feature is to receive merchandise in new or open-box condition. Amount received will also vary with each load. On average, the industry classes between 65 and 75 percent of the returned items as working, 20 percent is deemed as repairable and the remainder are items to be tossed away. Profits are acquired from the repaired and working items.
  • Shelf Pull Merchandise. Self pulls are actually products overstocked for sale in a store with very little or none purchased. If there is any damage to these products, it is normally due to handling and is quite minimal – between 5 and 10 percent and these products also display the original retail tags and price stickers.
  • Closeout Merchandise. Liquidation closeouts is also referred to as new overstocks. Those are products that never went up for sale in a store. Products of this kind can come from manufacturers, importers or distributors who have an oversupply in their warehouses, or they may be on the verge of closing down. In cases such as these, retailers have a tendency to sell these closeout for a drastically reduced price and in bulk. When purchasing wholesale liquidation closeout merchandise, several people continuously make the mistake of buying inappropriate goods for their reselling channels. One example is when one buys costumer-turned pallets for Amazon sales. It is possible to sell second hand products on Amazon. Sellers who try to build an Amazon FBA business for themselves will need to find new products with packaging intact. Perfect condition is not something  a customer-returned pallet can be associated with. Closeout product sourcing is a good option for Amazon sellers. This is due to the fact that many liquidation closeout -only wholesalers are available who concentrate on selling untainted products.


With that said, customer returns is still a good source for sellers with multiple channels. For instance, you happen to be someone who sells on eBay. Yet, you don’t mind selling a few things using Craigslist or even Facebook groups. Customer returns is a good base to work from. Each pallet and truckload of returns will provide you with a lot of variety to choose from.

Typically, you will go through and select the things you want to sell in case pack quantities when sourcing products via distributors or traditional wholesale companies. With liquidated goods, the case is different. Usually, when the truckload or pallet of excess comes in, you will purchase an unknown array of merchandise. Some trucks may come with a manifest to ease the confusion. However, it does not always disclose the condition of the products.

It may seem just a bit distressing working with liquidation goods. However, sourcing within the secondary market is still a good practice and can be very profitable. Take your time and do more research about the type of items you want to purchase! This is the best advice can give.