Stock grades explained: new, overstock, shelf-pulls, returns, B-grade and salvage

Two lots with the same brand, the same products and the same unit count can be worth completely different amounts. The difference is the grade: the condition of the goods and the packaging, and how much work you have to put in before you can sell them. Grade is the first thing an experienced buyer asks about, and the most common source of disputes.

The main categories

A, B and C grade

Many traders and liquidators also use a letter scale. A common, but not universal, reading is:

• A-grade: new or as new, complete, in original packaging. Can be sold as new where the law and the brand's terms allow.
• B-grade: fully working or wearable, but with damaged or missing retail packaging or light cosmetic marks. Sold as "open box" or "second choice".
• C-grade: visible damage, missing parts or accessories, or untested. For repair, parts or very low-price channels.

Some sellers add A+ (sealed), A- (opened but unused) or D (defective, for parts). If a listing mixes grades, ask for the split in percentages and whether it is measured or estimated.

Overstock and end-of-line in more detail

This is the cleanest stock in the trade, and the one closest to normal wholesale. The goods are new, but there is usually a reason they did not sell at full price: last season's colours, an older model, a packaging redesign, a retailer that cancelled an order or a production run that was too large. Ask the seller what the reason is. It tells you how easy the stock will be to resell, and in which markets.

For clothing and shoes in particular, overstock is likely to become more available in the EU now that large companies may no longer destroy unsold apparel and footwear. See our guide on the EU ban on destroying unsold textiles.

Shelf-pulls

Shelf-pulls have been in a store but never with a customer. Expect store price labels, security tags, some dented boxes and dust. For food, cosmetics and other dated products, shelf-pulls are often close to their best-before or expiry date, so the remaining shelf life matters more than the brand. Check what is legally sellable in your market: in the EU, food past its "use by" date may not be sold, while food past "best before" may be sold in some member states under conditions set nationally.

Customer returns

Returns are their own world, with unsorted, sorted and graded variants and a big spread in quality between sources. We cover them in a separate guide: customer returns pallets explained.

How to read a manifest

A manifest is the list of what is in the lot. A good one lets you price the lot without seeing it. Typical columns and what to do with them:

Three quick tests catch most problems. First, sort by quantity: if the top ten lines make up most of the units, your price really depends on those ten products. Second, sort by reference price: a few high-value lines can make an average unit price look better than the lot is. Third, check whether the manifest describes this exact lot or a "typical" lot. With returns and mixed pallets, sellers sometimes share a sample manifest; make sure you know which one you are getting.

Put the grade in writing

Before you pay, make sure the order confirmation states the grade for the lot or for each line, refers to the manifest by date or version, and says what happens if the delivery does not match: a price reduction, a partial return or a credit. This is the easiest dispute to prevent and the hardest to resolve afterwards. Our buying guide covers payment and inspection in more detail.

Selling? Describe your grade honestly and in plain words when you list. It saves you calls from the wrong buyers and builds a reputation that sells your next lot. See how to sell surplus stock or go straight to selling on BrandedStocklots.