2026 Edition · updated 2026-08-01

The State of Liquidation Recovery Rates

Everyone selling pallets quotes retail value. Almost nobody publishes what buyers actually recover. This report puts numbers on it: for 10 categories, the share of stated retail a reseller collects at market prices, how long the lot takes to clear, and how many units arrive dead. Free to cite, free to republish with a link.

Median recovery
28.6%
of stated retail, all categories
Best category
46%
Apple / premium tech
Weakest category
19%
Home & furniture

Recovery by category

Bars show the low-to-high band; the marker is the median. Percentages are gross resale proceeds as a share of the manifest's stated retail, before the cost stack below.

Small kitchen appliances22, 44% · median 31%
Consumer electronics (non-Apple)18, 41% · median 27%
Apple / premium tech34, 58% · median 46%
Apparel & footwear14, 33% · median 21%
Toys & games20, 42% · median 29%
Tools & hardware26, 52% · median 37%
Home & furniture12, 30% · median 19%
Health & beauty17, 38% · median 26%
Sporting goods & outdoors19, 40% · median 28%
General merchandise (mixed)13, 34% · median 22%

Full dataset

Liquidation recovery rates, clearing time, and defect rates by category
CategoryRecoveryWeeks to clearDefect ratePrimary channel
Small kitchen appliances
Blenders and air fryers move fast; missing blades and baskets are the margin killer.
31%618%eBay / Facebook local
Consumer electronics (non-Apple)
Test-before-list is mandatory. Untested lots price 8-12 points lower.
27%524%eBay
Apple / premium tech
Highest recovery in the dataset, and the most competitive bidding on the buy side.
46%315%eBay / Swappa
Apparel & footwear
Size curve decides everything. Mixed-size pallets recover near the low end.
21%129%Whatnot / Poshmark / bulk
Toys & games
Seasonality is worth 10+ points: Q4 recovery far outruns Q1.
29%812%Facebook / Amazon FBA
Tools & hardware
Brand-name power tools are the most reliable recovery band for new buyers.
37%511%eBay / local pickup
Home & furniture
Freight and damage eat the spread. Recovery looks good until you ship it.
19%1021%Facebook local
Health & beauty
Expiration dating and gating restrict who can actually list the good stuff.
26%714%Amazon / eBay lots
Sporting goods & outdoors
Bulky items recover well locally, poorly once you pay to ship them.
28%913%eBay / local
General merchandise (mixed)
The widest variance in the dataset. Bid on the manifest, never on the photo.
22%1122%Mixed / lot resale

Condition multipliers

Apply these to the category median before you bid. An untested customer-return lot of small appliances is not a 31% pallet, it is closer to 20%.

New / shelf pull1.00xSealed or store-fresh. The baseline the medians above assume.
Customer returns, tested0.82xFunctional, may be missing packaging or minor accessories.
Customer returns, untested0.64xUnknown defect rate. Price for the defect column, not the retail column.
Salvage / as-is0.38xValue is in parts, bulk lots, and scrap recovery.
Shelf-worn / opened box0.74xComplete but not sellable as new; discloses as used on most channels.

The cost stack

Recovery is gross. These five lines stand between recovery and profit, and they are the reason a 30% recovery pallet can still lose money.

Buyer premium5-15% of hammer priceCharged by most liquidation marketplaces on top of your winning bid.
LTL freight$180-$420 per palletLane, class, and liftgate dependent. Residential delivery adds materially.
Channel fees10-15% of sale priceeBay and Amazon land in this band once payment processing is included.
Shipping to buyer$8-$22 per packageOr $0 with local pickup, which is why local-heavy categories recover better.
Sort & list labor$2-$6 per unitThe line most new resellers leave out entirely.

Methodology

The figures above are the category baselines the Pallet IQ pricing engine uses when it grades a manifest. Each band is built from public sold-comparable ranges on the dominant resale channel for that category, adjusted for the condition multipliers listed above and for the defect rates typical of customer-return inventory.

They are modeled benchmarks, not a survey of individual buyer results, and they describe a typical lot rather than any specific auction. Bands are intentionally wide because condition, size curve, season, and channel move recovery more than category does. When we publish aggregate figures drawn from the analysis network, they are bucketed and only released once a bucket holds at least five distinct analyses, see market reports and our AI methodology.

To apply this to a real lot, run the numbers in the maximum bid calculator or drop a manifest into the manifest analyzer.

Cite or embed this report

Reproduce any table with attribution. Journalists, YouTubers, and course creators are welcome to use the figures, a link back to this page is all we ask.

Citation
Pallet IQ AI. "State of Liquidation Recovery Rates (2026 Edition)." https://palletiqai.com/reports/recovery-rates (accessed 2026-08-01).
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Questions we get about this data

What is a recovery rate on a liquidation pallet?

Recovery rate is the share of a manifest's stated retail value that a reseller actually collects after listing the goods at market prices. A pallet with $5,000 stated retail that returns $1,400 in gross sales has a 28% recovery rate.

What is a good recovery rate?

Across the 10 categories in this dataset the median modeled recovery is 28.6% of stated retail. Premium tech clears the high end near 46%, while mixed apparel and furniture sit closer to 19%.

Do these numbers include fees and freight?

No. Recovery is measured on gross resale proceeds before the cost stack. Subtract buyer premium, freight, channel fees, outbound shipping, and sort labor to reach net profit, the cost-stack table on this page lists typical ranges for each line.

Can I cite or republish this data?

Yes. The tables are free to reproduce in articles, videos, and courses with attribution and a link back to this page. There is also an embeddable maximum-bid calculator you can drop into your own site.

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