What every condition grade means in practice, the typical risk of each, which resellers they suit, and the questions to ask before buying.
Two pallets in the same category can be worth completely different amounts because of their condition grade. Grades are not standardized across the whole industry — each retailer and liquidator uses slightly different words — but the main groups are consistent. Here is what they mean in practice.
New / Overstock
Unused merchandise, usually in original sealed packaging, that the store simply had too much of.
- Typical condition: new, complete, ready to sell.
- Risk: low. The main risk is that the item was overstocked because it did not sell well.
- Best for: beginners, retail shops, online sellers who want "new" listings.
Shelf pulls
Items taken off store shelves for reasons like a seasonal reset, packaging update or price sticker change. Usually new, but boxes may be scuffed, stickered or dated.
- Risk: low to medium.
- Best for: discount stores, flea markets, bin stores.
Open box
The package was opened but the item appears complete and unused, or has been checked.
- Risk: medium-low. Check for missing accessories.
- Best for: electronics and appliance resellers.
Customer returns
Anything a customer sent back. Reasons range from "wrong size" or "didn't like the color" to "it broke".
- Typical condition: a mix of like-new, used, missing-parts and defective.
- Risk: medium. Profit comes from the average of the whole pallet.
- Best for: experienced resellers who can test, clean and part out items.
Refurbished
Items that have been repaired, restored or tested and returned to working condition, often by a third party.
- Risk: low to medium, depending on who refurbished it and whether it is tested.
- Best for: electronics resellers who want working units.
Salvage
Damaged, defective, incomplete or untested goods. Some salvage loads include items that only need a minor fix; others are only good for parts.
- Risk: high. Price reflects that.
- Best for: repair shops, parts sellers, scrap and recycling.
- Never buy salvage expecting retail-ready goods.
The questions to ask any seller
- What grade is this load, in your words, not just a label?
- Where did it come from — a store, a distribution center or an online return center?
- Has anything been removed or "cherry-picked"? (Some loads have the best items taken out before resale.)
- Is it tested or untested?
- Is it manifested?
- What is your return policy for this lot?
How grade affects your plan
- Price: New is the most expensive per pallet, salvage the least. Divide by realistic resale, not retail value.
- Time: Returns and salvage take much more time per item to sort, test and clean.
- Disposal: Lower grades produce more waste. Budget for dumpster or landfill fees.
- Selling platform: Some marketplaces have specific rules for selling used or refurbished items. Read them first.
How we grade
Every lot on Pallet Liquidation Nation shows one of these condition grades, plus whether it is manifested. We do not upgrade a grade to make a listing look better. If you are not sure which grade suits your business, call us and tell us what and where you sell.
Frequently asked questions
Which grade is best for a beginner?
New/overstock or shelf pulls. They cost more, but there are far fewer surprises, and you learn reselling without also learning repair.
Are customer returns mostly broken?
No, many returns are like new or work fine. But a share will be damaged, used or missing parts, so the price should reflect that mix.
What does 'untested' mean?
It means nobody checked whether the item works. Treat untested electronics as if some will not work.
Sources & further reading
Written by the Pallet Liquidation Nation team, Palatka, FL. General information only — not legal, tax or financial advice. Last reviewed 2026-11-05.