You many have recently noticed words like “processed” or “unprocessed” inventory in titles or auction descriptions on Liquidation.com. If you are like many other buyers and are unsure of the description of each then this guide can help you!
Processed Inventory means that high value items (usually with a retail over $80) have been removed. Some people in the industry refer to this practice as cherry picking.
Why would we do this? Auction pricing is usually based as a percentage of retail value of the entire lot. If there are a handful of high value items, it can skew the pricing up on all of the inventory.
Who does this benefit? Companies that operate discount stores or Bin stores find this practice helpful. It keeps the cost of the product low and helps prevent losses due to not maximizing value for high ticket items.
Unprocessed Inventory means that the pallet is sold exactly as it is received by us from the client. The industry often refers to these pallets as “raw”.
Why would we do this? Certain business models make more margin on higher value items, and this practice helps those businesses maximize their profitability.
Who does this benefit? Companies that operate online marketplaces or stores that are focused on quality (at a discounted rate) will benefit the most from having high value items included on their pallets.
Keep in mind that Liquidation.com never processes truckload inventory. Truckloads on Liquidation.com are always sold Raw and Unprocessed directly from the client. This concept only exists with pallet/LTL auctions. Ifan auction does not specifically call out if an auction is processed or not, buyers always have the option to view manifests (when available) on Liquidation.com to view if a lot has some items that are high value (over $80) or only low value items ($50 and under).