Refurbished noise canceling headphones and TVs are in high demand, and also multimillion-dollar refurbished items, like the machines used to make microchips. Refurbished electronics have gained popularity as the supply chain backlog caused a shortage of new goods.
Liquidity Services refurbishes hundreds of TVs every day that it says sell for 60% to 70% of the original price. When it comes to electronics, many returns arrive damaged and can't go right back out for resale. Postal Service, out-of-service military vehicles, and items left behind at TSA checkpoints, like 14 pounds of assorted knives. Liquidity Services also handles unclaimed mail and packages for the U.S.
We sell the bucket trucks for power and utility companies," Angrick said. All of the colleges and universities that are publicly funded, all of that equipment and uniforms come through our marketplace. "We've sold road paving equipment, entire gymnasium floors, scoreboards. There's where pallets of returns and some individual items are auctioned off to the highest bidder, Secondipity for direct sale of individual items, and GovDeals for some especially unusual items. Liquidity Services sells returned items on a variety of marketplaces. They want to focus on the 99% slice of the pie," explained Rosenberg. "Companies typically don't want to spend a whole lot of time and effort focused on that little slice of the pie. Howard Rosenberg founded B-Stock after six years at eBay, where he saw the benefits of specializing in liquidation for others, at scale. Another big player is B-Stock Solutions, which runs branded liquidation marketplaces for huge clients like Amazon, Walmart, Home Depot and Costco. Liquidity Services remains the only major publicly traded liquidator.
Its stock peaked in 2012, trended downward for the next seven years, then saw a resurgence during the Covid pandemic. In 2006, it went public under its new name Liquidity Services. We realized that a marketplace model can create value for virtually any type of used item," Angrick said.īy 2000, a year after it launched, had its first major sale: a $200,000 marine vessel for the state of Georgia. My father and I started toying around with that. "My father and I used to pick up used books and recyclable bottles. He co-founded the company in 1999 as, with $100,000 of his savings. "The circular economy exists to make sure these items find a home, connect it with a family or a young consumer, and keep it out of the landfill," said Bill Angrick, CEO of Liquidity Services. Sustainable shopping options are a growing priority for younger shoppers. And so I think that the boom in liquidation is really fueled by consumerism and how it's shifted from new to used," said Kristin Langenfeld, CEO and co-founder of GoodBuy Gear. "Buying one used item, it saves 82% of its carbon footprint and consumers are really starting to make smart choices. One of them is GoodBuy Gear, which specializes in safely liquidating items for babies and young kids. There are now thousands of companies in the booming space. This pain point for mainstream retailers is now big business for liquidators. returns generate an estimated 16 million metric tons of carbon emissions and create up to 5.8 billion pounds of landfill waste each year. Returns that aren't liquidated are often destroyed by being incinerated or sent to landfills. I would suggest that it's possible part of the inflation is these huge amount of returns, that have to be sold at a loss, is detracting from the profitability that a company normally has, and they have to raise their prices," said Tony Sciarrotta, executive director of the Reverse Logistics Association. "Everyone's very worried about price increases right now. Processing a return can cost retailers up to 66% of an item's original price, according to returns solution company Optoro. For online purchases, the average rate of return was even higher, at 20.8%, up from 18% in 2020. Especially 40 years ago, no one was looking at returns."īut in 2021, a record 16.6% of all merchandise sold was returned, up from 10.6% in 2020, according to the National Retail Federation. "It's a good way to hide money, honestly, because nobody's looking at returns. "A lot of this used to be controlled by the mafia," said Zac Rogers, assistant professor of supply chain management at Colorado State University.
The liquidation market has more than doubled since 2008, reaching a whopping $644 billion in 2020, according to data from Colorado State University.
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