Liquidation Glossary
Master pallet terms before you bid: shelf pulls, manifests, recovery rate, LTL freight, pallet grades, and closeout definitions for resellers.
Liquidation
The process of selling off excess, returned, or discontinued inventory at significantly reduced prices. Retailers liquidate inventory to recover capital and free up warehouse space.
Liquidation Pallet
A bulk lot of merchandise sold on a wooden pallet, typically containing 50-500+ items. Pallets are priced well below retail and sold through auctions or direct sales.
Truckload
A full trailer load of liquidation merchandise, usually 24-26 pallets. Truckloads offer the lowest per-unit cost but require significant capital and storage space.
Manifest
A detailed list of items included in a liquidation lot. Manifests typically show SKUs, product descriptions, quantities, retail values, and item conditions.
Mixed Lot Manifest
A manifest covering a pallet or truckload containing merchandise from multiple categories (e.g., apparel + home goods + electronics). Mixed lots are common with big-box returns and require broader resale channels but often come at deeper discounts.
Overstock
New, unused merchandise that retailers couldn't sell during the regular sales cycle. Overstock is typically in original packaging and excellent condition.
Customer Returns
Items returned by customers for various reasons. Returns may be new/unused, opened/tested, or have minor defects. Condition varies and should be inspected upon receipt.
Shelf Pulls
Items removed from retail shelves to make room for new inventory. Shelf pulls are typically in good condition but may have minor shelf wear or damaged packaging.
Salvage
Items with known defects, damage, or missing parts. Salvage inventory is sold at the deepest discounts and may be suitable for parts, repair, or recycling.
Closeout
Merchandise being sold off because it's discontinued, seasonal, or the retailer is exiting a product category. Closeouts are typically new but may be from prior seasons.
MSRP
Manufacturer's Suggested Retail Price. The original retail price set by the manufacturer. Liquidation prices are often expressed as a percentage below MSRP.
B-Stock
A leading online marketplace for liquidation auctions. B-Stock connects retailers with professional buyers through competitive bidding on pallets and truckloads.
Blind Pallet
A pallet sold without a manifest, meaning buyers don't know exactly what's inside. Blind pallets are riskier but often priced lower than manifested lots.
LTL (Less Than Truckload)
Shipping method for loads smaller than a full truck. LTL freight is used when buying individual pallets rather than full truckloads.
LTL Freight Rate
The cost to ship a single pallet (or a few) via a less-than-truckload carrier. Rates are calculated from weight, dimensions, freight class, origin/destination ZIP, and whether liftgate or residential delivery is needed. Typical pallet LTL rates run $150–$450 domestically.
Freight Class
A standardized NMFC classification (50–500) that carriers use to price LTL shipments. Lower classes = denser, cheaper freight. Most consumer-goods pallets fall between class 85 and 150.
Liftgate
A hydraulic platform on the back of a delivery truck that lowers pallets to ground level. Required for residential deliveries or any location without a loading dock. Adds roughly $50–$125 to an LTL shipment.
Dock-to-Dock
An LTL shipping term meaning the carrier picks up from a loading dock and delivers to another loading dock — no liftgate or residential surcharges. The cheapest way to ship pallets.
BOL (Bill of Lading)
The legal shipping document issued by a carrier that lists the freight being transported, origin, destination, and terms. Buyers should always verify pallet count and condition against the BOL at delivery before signing.
FOB (Free On Board)
Shipping term indicating where responsibility transfers from seller to buyer. FOB Origin means buyer pays shipping; FOB Destination means seller pays.
Tested Working
Electronics or appliances that have been powered on and verified to function properly. This condition is better than "untested" but may not be comprehensive testing.
Amazon FBA
Fulfillment by Amazon - a service where Amazon stores, picks, packs, and ships products for sellers. Many liquidation buyers resell inventory through FBA.
ROI (Return on Investment)
The profit earned relative to the amount invested. Calculated as (Sale Price - Cost) / Cost × 100%. Successful liquidation buyers aim for 50-200%+ ROI.
Wholesale
Buying goods in bulk at discounted prices for resale. Liquidation is a form of wholesale purchasing with even deeper discounts than traditional wholesale.