Liquidation.com Review – Video Followup

Liquidation.com has received a less than warm welcome from the readers of our wholesale blog, according the comments in our previous review of Liquidation.com. Nonetheless, I’m still on the search for someone that has had a fantastic experience with them.

I’d like everyone to check out this video and let us know what you think. The video portrays Liquidation.com as a great source of wholesale HDTVs. One guy bought 6 LCD TVs for $1300 and expects to resell them for $1800 each. Is this possible with the prices and selection at Liquidation.com? I would love to hear from someone that has visited one of their warehouses. As always, I’m trying to give Liquidation.com a fair review. However, all of the comments on our previous review told of horrible experiences or average experiences where the customer was able to break even. I have yet to hear a real success story, but I am optimistic. I can’t believe that a publicly traded company (Liquidity Services – LQDT) can be as terrible as everyone is saying and still be in business. According to the Better Business Bureau (BBB), Liquidity Services Inc has a B+ rating and they are BBB accredited. It looks like they have about 100 complaints per year, but most of those get resolved. If you’ve been burned by Liquidation.com, you may have some success if you file a formal complaint with the Better Business Bureau. Here’s a link to Liquidation.com’s BBB report. They show lots of customers leaving happily with their fully functional merchandise. Does this video accurately portray your experience with Liquidation.com?


If interested, Liquidation.com is having a huge open box HDTV sale.

4 Replies to “Liquidation.com Review – Video Followup”

  1. Same for me thomas. I do think that either the company that is selling the items have outside buyers bidding up the items so they can make more money… I saw today one name d*******s big on all of one company items and all of the bids starts at 100 and this person bid up all of them over $200-$300.. and there were 3 pages of items, kindda fishy i must say.

  2. This is an ancient thread, but I thought I’d add to it as an opinion on the somewhat-positive side.

    I bought approximately 100 lots from liquidation.com between mid 2009 and late 2010, almost always in the computers or consumer electronics categories. Total spend was on the order of $80K over that time. I split my efforts between a mix of high-dollar working electronics and lower-dollar returns and salvage. I sold most items on eBay and Amazon, and some directly to other businesses.

    The salvage materials (mainly video game systems) were typically sold to people on eBay who ran repair shops or needed parts. The working items were tested extensively and then sold on Amazon.

    This can be a lonely business, and I was always looking for information from others to compare notes, so I’ll share some details about my dealings with them below.

    Overall, my experience was positive. Here are some things I learned:

    1) Completely disregard the product values/MSRP. These are returns, and those numbers are as fictitious as the sticker price on a car. Instead do your own homework. Know _exactly_ what you expect each item to sell for, and account for all fees when you sell. Data is your friend. Use a sales history database like TeraPeak if you don’t have your own info.

    2) Pay attention to their buying fees and shipping. In many cases, it makes sense to send your own shipper to pick up your items (I loved FedEx Ground). I saved thousands doing this. They will often pull items from a pallet and put them in boxes for you if you ask. This allows you to use a regular package shipper instead of freight in cases where it makes sense.

    3) Understand shipping risks. Once you decide to do your own shipping you basically waive your right to dispute because they essentially assume you are in possession of the items when your carrier picks up the goods. I found this risk acceptable.

    4) Only buy lots with detailed manifests.

    5) Assume some loss of material compared to what’s on the manifest. I had good luck here – I actually ended up with MORE material in the purchase more often than I received less.

    6) Know your price (including shipping and fees) and stick to it. Prices get driven up by buyers who bid based on some % of the retail price listed on the lot, and honestly they get pretty unrealistic sometimes as a result. Know when this is happening an stop bidding at that stage.

    7) Research sellers. When I started, they didn’t have the seller stats they have now. The stats are basic and don’t shed a lot of light on things – but they tell you volume. I only buy from high-volume sellers. They’re the most trustworthy.

    8) You will never make money on shelf pull or returned video games at price points you can get on the web. Well, I was never able to at least.

    Gripes:

    1) As mentioned, customer service from the buyer perspective can be hit-or-miss. Form a good relationship with a sales rep and ask for that person. Also, form a good relationship with 1-2 people at the warehouses you tend to buy through. I found this went a long way towards smoothing over issues.

    2) Expensive. Fees have gone up.

    3) Selection. I stopped using them because my favorite seller left them. “onlinereturns” was hands-down the best source of material. I’m pretty certain this was the Amazon.com return group, and they have since brought this in-house and are selling their returns on Amazon themselves now. Fantastic merchandise and I made money every time I bought from them. There just isn’t enough material sold these days on liquidation in the categories I’m interested in. What’s there sells for more than I care to pay, so I’ve moved on.

    I hope that helps. My experiences have been pretty good, but the changes to their seller base mean it doesn’t work well for my business any more.

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