Cheap liquidation is the term used when a business decides to shut down. This usually stops creditors and HM Revenue and Customs from chasing the company for unpaid VAT, tax, or PAYE returns as well as stopping Companies House sending reminders about late directors’ loans. However, it’s not the cheapest way to wind up a business. It can take time to find a buyer and the company’s assets can be sold off, with the proceeds distributed to the company’s creditors.

Buying merchandise from liquidation websites and wholesalers is a good way to boost your retail and online selling business at low prices. It’s possible to buy in bulk – from a parcel up to pallets or truckloads – and get discounts on top-selling products like laptops, tablets and smartphone accessories, wholesale clothing, and homewares. The best online liquidation sites have a wide range of product categories to suit your customers, including electronics, apparel, and more.

Navigating Liquidation: How to Liquidate a Company on a Budget

The types of goods that go into liquidation include shelf pulls (merchandise that was put up for sale but not bought) and overstocks (products the retailer no longer wants because they’re out of season or obsolete). The products also include salvage goods, such as damaged or broken items.

Liquidation businesses take this merchandise, break it apart into smaller lots and sell them to retailers and resellers who then resell them on eBay, Amazon, Facebook Marketplace, Offer Up or Craigslist. The merchandise can be as low as $0.50 to $1, depending on the quality and condition of each item.