This is why several new online B2B auction marketplaces have popped up in recent years. Traditional liquidation measures were cumbersome and required extra logistical effort. So most companies end up selling these items on marketplaces like eBay or Amazon which will, as a result, generate more revenue than if those same clothes could just sit around taking up virtual room! For example, the cost of this merchandise is usually higher because it depreciates with age, occupies space in warehouses, and ties up capital. The liquidation process for retailers can be a difficult one as they have to turn overstock and outdated goods into cash. Entrepreneurs and small business owners have taken advantage of this reduced-priced inventory to start their resale businesses! What Are Liquidation Pallets? These items, along with excess as well as sales stock recovered from liquidated businesses are often collectively referred to as liquidation stock. Around $428 billion worth of inventory was returned in 2020, which makes up over 10% of total U.S.

Have you ever wondered what happens to your returned goods? While some of it does go back on the shelf to be bought again by a different customer, a large portion of the unused merchandise sits with retailers taking up precious storage space.Ī lot of times, however, retailers can get stuck with inventory they don’t need if it ends up being returned by customers for any number of reasons ranging from the wrong size to buyer's remorse or not meeting customer expectations - which means this lost retail space could be pocketed as profit instead (think about how much money was spent on advertising).

Buying liquidation pallets