Glossary / Liquidation
Liquidation
Selling inventory quickly, often at a discount, to turn it into cash.
In reselling, liquidation has two meanings. First, you can buy liquidation inventory — returned, overstock, or excess retail goods sold by stores or warehouses in bulk at steep discounts. Second, you can liquidate your own inventory — selling items quickly at reduced prices when you need cash or want to clear storage. Liquidation pallets are a popular sourcing channel but carry risk since contents can be unknown quality.
Example
A reseller buys a 50-pound liquidation pallet from Amazon returns for $120. After sorting, 15 items are sellable and 10 are defective. They price each sellable item to recoup the full $120 across the batch.
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