Liquidation Wholesalers: Where Liquidated Goods Come From?

You probably know by now that the best way to increase the competitiveness and profitability of your reselling business is to source your inventory from online liquidation platforms. When you work with a reputable liquidation website, you can buy wholesale liquidated merchandise at prices below wholesale. You are also assured that you are purchasing high quality liquidated goods.

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Top-tier online liquidation platforms like Direct Liquidation have partnerships with major wholesale and retail companies. They provide online vendor space for where retailers can sell their products. But do you know where liquidated goods come from?

What Are Liquidated Goods and Whey Do They Come From? 

When applied to the wholesaling or retailing business, the term liquidation refers to the practice of offloading or disposing stock that is surplus to current requirements.

There are different reasons why a merchandise ends in liquidation. An example is when a company is moving to a new location or shutting down a store. It is much easier to liquidate the merchandise left in the store than to pack everything and unpack them in the new store location. Even if a company is not closing a store, there will still be some merchandise that will not be sold and has to be disposed to free up warehouse space for new products that are coming in.

These unsold or surplus goods poses serious logistical problems for national retailers such as Target, Amazon, Lowe’s Hardware and WalMart. They are usually sold via online liquidation platforms like Direct Liquidation.

Being a partner of the above mentioned retailers, Direct Liquidation offers wholesale refurbished items, closeouts, overstocks and customer returns coming directly from these retail giants. There are also liquidated goods that come directly from manufacturers including Sony, LG, Samsung, Google, HP, Bosch, Black & Decker, Microsoft and Apple.

Different Types of Liquidated Goods

There are different types of merchandise that retailers and wholesalers want to liquidate. These include reconditioned or refurbished items, closeouts, overstock and customer returns. All these categories of liquidated goods need to be disposed immediately by the retailers. These goods are sold by online liquidators directly to small businesses or resellers usually via live online liquidation auctions or for a fixed or negotiated price.

Reconditioned or refurbished 

These are items that were returned by customers because of some faults or defects. The returned items are tested to identify the problem or problems, broken parts are replaced if needed, cleaned thoroughly and repaired so that they can be sold again. Some refurbished items such as laptops are sold with the manufacturer’s warranty.


These goods come from stores that are shutting down. Some companies shutdown their store because of business failure or bankruptcy. But even large national retailers sometimes have to close a store or two. The items from the closed stores, sometimes even fixtures and fittings are bundled into pallets and sold below MSRP. 


Stock ordering is not really an exact science. Even large national retailers are unable to accurately estimate how much stock they need and, for example, end up over-ordering seasonal merchandise. When that particular season is over, the unsold seasonal items are no longer needed and have to be offloaded in order to free up space for stock that will be sold for the following season. Another reason for overstocking is the release of newer version of a product, such as electronics and gadgets. The older models will need to be liquidated.

Customer Returns

These are goods returned by customers to a retailer. These products are returned for different reasons. Sometimes customers change their mind about the purchase, sometimes they simply want to return the item unused and opened or sometimes the merchandise may bear superficial damage or defective. But whatever is the reason for the return, these items can no longer be legally classifiable as new and their status are downgraded to second-hand. The accumulation of returned products poses warehousing problems for retailers or wholesalers. The returned goods need to be liquidated as quickly as possible.

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This is the largest category of liquidated goods. According to statistics in the U.S., American customers returned around $351 billion worth of items and this amount is projected to reach $550 billion by 2020.

The Role of Online Liquidation Platforms in the Wholesale of Liquidated Goods

Most large national retailers choose to dispose of their unwanted merchandise with top-tier liquidation specialists like Direct Liquidation. These liquidation specialists operate online marketplaces where retailers can sell their items by truckloads or pallets at very low prices. An online marketplace is a one-stop-shop where different categories of liquidated goods are bundled and offered for auctions to resellers with valid licenses.

In the marketplace operated by Direct Liquidation, buyers can find a huge range of unbranded and branded wholesale items being sold in truckloads or pallets way below their retail value. You will find liquidated goods that come directly from manufacturing giants including Sony, LG, Samsung, Google, HP, Bosch, Black & Decker, Microsoft and Apple.

If you are looking to buy liquidated goods from these manufacturers or from national retailers such as Target, Walmart, Amazon or Lowe’s Hardware, your best option is Direct Liquidation. It has wholesale liquidation distribution centers close to the warehouses of these retailing giants. They are located in Greensboro, North Carolina; Bentonville and Rogers, Arkansas; Frankfort, Kentucky; Spartanburg and Blacksburg, South Carolina; Greenfield, Indiana; and Palmetto, Georgia.

These distribution centers are located near major highways. This will you provide you with additional savings in shipping or fuel costs and can reduce turnaround time from warehouse to distribution centers. 

If you are not close to any of Direct Liquidation’s distribution centers, you can take advantage of our shipping package. We have partnerships with several courier companies and can offer you shipping rates that are often lower than those of third-party couriers.

Direct Liquidation is a goTRG company.

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