Reference

Clearance Stock Glossary

48 industry terms explained — from Grade A to WEEE regulations. Everything you need to speak the language of clearance stock.

Stock Types Grading Trading Terms Business & Legal Sourcing

Stock Types

11 terms

Clearance Stock

Goods that a seller needs to dispose of quickly, typically at below-market prices. Can include overstock, end-of-line, customer returns, or liquidation stock.

Overstock

Excess inventory that a retailer or distributor has ordered beyond what they can sell through normal channels. Usually new and in original packaging.

End-of-Line (EOL)

Products that are being discontinued by the manufacturer or retailer. The current stock needs to be cleared to make room for new ranges. Often brand new.

Customer Returns

Products returned by consumers after purchase. Reasons vary from change of mind (often unopened) to defective items. Typically sold in mixed-grade lots.

Liquidation Stock

Goods sold from a company that is ceasing operations (voluntary or involuntary). Often sold at deep discounts by administrators or liquidators.

Salvage

Damaged or non-functional goods sold for parts, materials recovery, or recycling. The lowest grade of clearance stock.

Dead Stock

Inventory that has never been sold and has been sitting in a warehouse for an extended period. May still be in original packaging but could be outdated.

Ex-Display

Items that were used as display models in retail stores. Functional but may have cosmetic wear from being on show.

Refurbished

Products that have been repaired, tested, and restored to working condition. Often come with a limited warranty from the refurbisher.

B-Stock

Another term for Grade B customer returns. Products that have been opened, lightly used, or have minor cosmetic defects but are functionally complete.

Job Lot

A mixed assortment of goods sold together as a single lot. The buyer takes everything — no cherry-picking individual items.

Grading

7 terms

Grade A

Brand new, unused stock in original packaging. The highest quality clearance stock. May include overstock, cancelled orders, or end-of-line goods.

Grade B

Customer returns that have been opened and possibly lightly used. Minor cosmetic imperfections possible. Functionally working.

Grade C

Stock with visible damage, significant cosmetic defects, or missing components. May require repair or refurbishment before resale.

Grade D

Non-functional stock suitable only for parts harvesting, materials recovery, or recycling. Sold in bulk at very low prices.

Unmanifested

A lot sold without a detailed item-by-item inventory list. The buyer doesn't know exactly what's in the lot until they open it. Higher risk, but often lower price.

Manifested

A lot accompanied by a detailed inventory listing every item, model number, quantity, and sometimes condition. Lower risk for the buyer.

Untested

Items that have not been checked for functionality. The seller makes no guarantee that they work. Priced accordingly — typically between Grade B and C.

Trading Terms

9 terms

EXW (Ex Works)

The buyer collects the goods from the seller's premises. The seller's responsibility ends when the goods are made available for pickup. The buyer arranges and pays for all transport.

FOB (Free on Board)

The seller delivers the goods to a named port or location. The buyer takes responsibility once the goods are loaded. Common in international clearance deals.

DDP (Delivered Duty Paid)

The seller delivers goods to the buyer's location with all duties and taxes paid. The buyer's simplest option — they just receive the goods.

MOQ (Minimum Order Quantity)

The smallest number of units a seller is willing to sell. Common in wholesale and clearance — sellers often won't break lots below a certain size.

RRP (Recommended Retail Price)

The price the manufacturer suggests the product should sell for at retail. Clearance stock is typically priced as a percentage of RRP.

Pro Forma Invoice

A preliminary invoice sent before goods are shipped. In clearance stock, it's common for sellers to require payment against a pro forma before releasing goods.

Pallet

A standard wooden or plastic platform used for transporting goods. Clearance stock is often sold by the pallet. A standard UK pallet is 1200mm × 1000mm.

CBM (Cubic Metre)

A unit of volume measurement used in logistics. Important for calculating shipping and storage costs for clearance stock purchases.

Mixed Pallet

A pallet containing multiple different products or SKUs, rather than a single product. Common in customer return lots.

Business & Legal

8 terms

WEEE Regulations

Waste Electrical and Electronic Equipment regulations. UK law requiring proper disposal or recycling of electronic goods. Relevant when buying electronic clearance stock.

CE / UKCA Marking

Product safety certification. CE (EU) and UKCA (UK) markings confirm that products meet safety, health, and environmental standards. Required for selling many products in the UK.

VAT Margin Scheme

A VAT scheme allowing resellers of second-hand goods to pay VAT only on their profit margin rather than the full selling price. Relevant for clearance stock traders.

Due Diligence

The process of verifying a seller, their stock, and the legitimacy of a deal before committing to purchase. Essential in clearance stock to avoid scams or misrepresented goods.

Bill of Lading

A legal document issued by a carrier acknowledging receipt of goods for shipment. Acts as a receipt, contract, and title document. Common in larger clearance deals.

Bonded Warehouse

A secure warehouse where imported goods are stored before customs duties are paid. Some clearance stock is sold from bonded warehouses, with the buyer paying duties on release.

Grey Market

Legitimate branded goods sold outside the manufacturer's authorised distribution channels. Common in clearance — goods are genuine but may not carry a UK warranty.

Intellectual Property (IP) Restrictions

Brand owners may restrict resale of their products on certain platforms. Some clearance stock (especially branded electronics) may have resale restrictions on Amazon or eBay.

Sourcing

13 terms

Lead

Information about a clearance stock opportunity, including what's available, the quantity, condition, price, and seller contact details.

Manifest

A detailed list of every item in a lot, typically including model numbers, quantities, conditions, and sometimes retail values. Essential for evaluating deals.

Cherry-Picking

Selecting only the best items from a lot rather than buying everything. Most clearance sellers don't allow this — you take the full lot or nothing.

Sorting

The process of going through a mixed lot, grading each item, and organising stock for resale. A major cost factor in customer return lots.

Flip

Buying clearance stock and reselling it quickly without significant processing. A 'quick flip' prioritises speed over maximising per-unit profit.

Pallet Flipping

Buying whole pallets of clearance stock and reselling them as smaller lots or individual items for profit. A common entry point for new clearance buyers.

Lot

A group of items sold together as a single unit. Clearance stock is typically sold in lots rather than individual pieces. Lot sizes vary from single pallets to full containers.

Container Load

A full shipping container of goods (20ft or 40ft). The largest standard unit of clearance stock. 40ft containers can hold 25-28 standard pallets.

SKU (Stock Keeping Unit)

A unique identifier for each distinct product. A manifested lot lists every SKU and quantity. More SKUs = more sorting work.

Sell-Through Rate

The percentage of purchased stock that you actually sell. A 90% sell-through means 10% is unsellable waste. Critical for calculating true profitability.

Gross Margin

The difference between your selling price and cost price, expressed as a percentage of selling price. Does not include fees, shipping, or overheads.

Net Margin

Your actual profit after all costs are deducted — purchase price, fees, shipping, storage, labour, and any unsellable stock losses.

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