What is Liquidation

Simply put, liquidation the end of the product life cycle. For our purposes, this term is part of the reverse logistics industry. Normally, items meet the end of life cycle due to poor sales performance, change in product, or customer returns. If this product is not bought by liquidators, then the result becomes environmental distress. Each retailer, manufacturer, and brand have their own criteria and thresholds for deciding when their inventory is liquidated. For this reason, there can be a large variance in lot sizes, merchandise quality and category names from source to source. There’s a lot of special lingo in our industry, so we’ve put together a small glossary of terms to help you navigate the sea of merchandise that awaits. Getting familiar with these terms will be key in becoming a savvy liquidator!