Returns & CX Apr 9, 2027 5 min read
How to Liquidate Returned Apparel
Liquidation = clearing returned/damaged stock at lower margin. Channels: outlet, B2B liquidators, employee sales, sample sales, online marketplaces. Pick by volume + brand position.
The Chart
| Channel | Recovered % of Original Price | Best For |
|---|---|---|
| Outlet (own) | 60-80% | Brands with outlet network |
| Sample sale | 50-70% | Periodic high-volume liquidation |
| Employee sale | 40-60% | Small volume + employee perks |
| B2B liquidator (Nicole Miller, Liquidation.com) | 20-40% | Large volume fast cash |
| TJX / Marshalls (B2B) | 30-50% | Mid-volume off-price retail |
| Online (Poshmark, Mercari) | 30-60% | Slow but better recovery |
FAQs
Brand protection?
Liquidation hurts brand premium positioning. Luxury brands often destroy. Mid-market: relabel as outlet/last-season. Mass-market: liquidate openly.
Tax implications?
Selling at loss = no taxable revenue impact (just lower realized revenue). Donating = tax-deductible at fair market value (with paperwork). Discarding = full loss.
Need this on your store?
Tailor Size Guide ships pre-built size charts for Shopify.