As we look back into 2025, excess inventory didn’t just show up more often; it showed up for new reasons and behaved in new ways. Excess inventory was no longer dominated by simple overproduction or safe, seasonal bets that didn’t land. Instead, what we’re seeing across.
We are seeing a more tangled mix of forces: tariff uncertainty, shifting sourcing costs, cautious retailer buying patterns, rising Amazon-related costs, stubbornly high ecommerce returns, and consumers who are more price-conscious than ever but still expect quality and brand recognition.
Brands are calling this year where the rules feel like they keep changing mid-game. Demand can shift sharply from quarter to quarter. Landing costs for imports move with every tariff headline. Retailers tighten or loosen open-to-buy more abruptly. The economics of selling on marketplaces like Amazon shift after a single fee change or policy update. And running lean, which seemed like the safest approach for several years, has its own risks when lead times are long and macro conditions are volatile.
At the same time, the secondary market has matured. Off-price retail is no longer a marginal channel; it’s a center of gravity for branded products. Discount grocers are expanding aggressively and now sit squarely in the mainstream. Resale has gone from niche to normalized. Livestream commerce is real and fast. Electronics buyers now operate in a world where device disabling is part of baseline risk management. And return policies at major retailers have tightened, changing what enters liquidation in the first place.
Because Overstock Trader sits in the middle of this system, working with off-price retailers, discount grocers, refurbishers, exporters, and professional resellers every day, we have a bird’s eye view into how these forces combine. We see, manifest by manifest, which categories are piling up, which are moving quickly, where brands are cutting, and what buyers are leaning into.
What follows is an attempt to capture that reality: the key trends defining excess inventory, inventory liquidation, and reverse logistics to expect in 2026 as seen from the front lines of the secondary market.
Trend 1: Off-Price Retail Continues to be the Hub for Excess Inventory
Off-price retail has come a long way in the last few years. What was once considered a supplemental or opportunistic channel for discontinued or seasonal items is now one of the biggest players in the game. The global off-price market hit $372.5 billion in 2025 and is still going strong in 2026 as consumers prioritize value and discovery.
Retailers like TJ Maxx, Marshalls, Ross Dress for Less, Burlington, Big Lots and Ollie’s have expanded their buying power and operational sophistication. Buyers in these channels no longer treat liquidation as a series of one-off deals. Instead they have structured buying programs with scheduled purchase cycles, SKU level expectations, strong inbound quality rules and visibility into future assortment needs.
But what’s equally important is the consumer behavior behind the growth. Consumers visit off-price stores as part of their regular routine, not just to hunt for deals. They trust the brands, trust the merchandise rotation and trust the value proposition. As a result off-price retailers get high foot traffic and big baskets even when traditional retail slows. Brands see this stability and are now including off-price in their inventory lifecycle planning. This shift has elevated the need for reliable off-price retail distribution service partners that can support quality, compliance, and predictable supply.
Our excess inventory buyer network confirms off-price is hungry for inventory across almost every category such as apparel, footwear, home goods, beauty, seasonal and even packaged food. The common feedback is simple: consumers want branded value and off-price retailers are ready to deliver it.
Trend 2: Marketplace Enforcement Gives Brands More Control of Liquidation
The changes on Amazon and Walmart Marketplace have had the biggest impact on liquidation in 2025. What was once a “wild west” has now become more regulated. Both platforms have introduced more stringent seller verification requirements, meaning third-party sellers must prove the legitimacy of their supply chain.
For years brand teams have struggled with liquidation inventory resurfacing online at deep discounts. Once an unauthorized seller got inventory, often through a wholesaler or jobber, MAP pricing would collapse in hours. Retailers were frustrated, brand equity suffered and marketplaces were flooded with inconsistencies.
That’s all changed. Sellers now have to provide documentation such as verifiable invoices, proof of authorized sourcing and SKUs that match brand controlled identifiers. Amazon’s compliance checks are more automated and strict. Walmart has tightened up their marketplace onboarding and monitoring criteria. Sellers who can’t validate their inventory sources are getting removed or restricted.
This has given brands more control. They can now liquidate inventory through trusted channels with much less risk of it reappearing online. This creates a more stable environment for inventory liquidation planning and helps brands protect pricing across full price retail. It also gives brands permission to explore more secondary channels safely knowing marketplaces are no longer the default endpoint for excess goods.
Trend 3: Tariff Uncertainty Drives Faster Liquidation Decisions
One of the most noticeable emerging trends in our buyer network is how geopolitical uncertainty, especially around tariffs, is shaping liquidation strategies in 2026. Brands with sourcing exposure in China or other tariff-sensitive regions are facing increasing unpredictability around landed costs.
The result is a split behavior pattern:
Some brands are liquidating more aggressively.
Higher freight costs, increased duties, and fluctuating exchange rates have pushed the margins of certain imported SKUs so low that continuing to hold inventory no longer makes financial sense. For low-margin goods like home textiles, basic housewares, select electronics accessories, and lower-end toys, liquidation is often the least-wasteful path.
Other brands are delaying decisions.
Uncertainty around potential tariff adjustments has made some brands hesitant to reorder or reset assortments. They are choosing to sit on cash, reduce inventory commitments, and push liquidation decisions until they have more clarity about the cost environment.
Both behaviors result in more excess inventory entering the secondary market. For buyers, the volume and category diversity of imported overstock has increased. For brands, liquidation has become a tool to navigate risk, not only a method of clearing unsold goods.
This trend is likely to persist throughout 2026, especially as global cost structures continue fluctuating.
Trend 4: Excess Food Inventory Surges as Discount Grocers Absorb It
Food and grocery is one of the biggest categories to see excess inventory coming through our network. Multiple factors are at play: shorter coding windows, stricter retailer compliance requirements, more returns from grocery delivery services, changes in promotional demand, and more frequent packaging refreshes driven by cost or sustainability reasons.
In the past, food liquidation carried a lot of brand risk. Manufacturers worried about visibility, quality control and products showing up in channels that didn’t align with brand standards. Today, the environment is very different.
Discount grocers like Grocery Outlet who surpassed $4 billion in revenue in 2024 have modernized their operations and expanded into new markets. These stores have clean shelves, consistent traffic and strong consumer trust. Regional chains like Sharp Shopper, United Grocery Outlet, Daily Deals, WinCo and Ruler Foods have also scaled up their food closeout programs.
Consumers now go to these stores intentionally. They know that short dated food or overstock food inventory can be a great value and they trust the branded products they find there. The stigma around food liquidation has largely gone away especially as economic pressure pushes more consumers into value channels.
For brands this means an opportunity to get value back on products that would have otherwise been donated or destroyed. Liquidation is now often the first stop for managing excess food, not the last.
Trend 5: High Apparel Returns, Resale Channels Absorb the Volume
Apparel has the highest return rates in retail, especially online. Bracketing, size inconsistencies, fabric feel and trend experimentation make returns a part of the ecommerce apparel experience. Return rates have been 25-35% across 2024 and 2025, and 2026 forecasts in our network suggest the trend isn’t changing.
The difference is the resale channel has scaled to absorb the volume. The U.S. secondhand apparel market was over $56 billion in 2025 and growing. Global fashion resale was over $210 billion and projected to continue to grow. This means apparel returns no longer overwhelm the liquidation systems.
Resellers, including power sellers on Whatnot, Poshmark, Depop, Vinted, Grailed and livestream platforms are running like pros. They know photography, storytelling, category specialization and pricing nuances. Many have built loyal audiences and niche communities making them the perfect apparel excess inventory partners to move returned apparel quickly and at better recoveries than older liquidation channels.
For brands, routing apparel into resale networks means predictable movement without pricing erosion on Amazon or Walmart. So resale is evolving from a secondary channel to one of the main release valves for apparel returns.
Trend 6: Footwear Recovery Strengthens on Predictable Demand
Footwear is pretty much the one category that still holds some water for all those leftover inventory headaches. Yes, we still see high return rates around 18-30% but somehow footwear never loses its value, whether it’s getting sold off at a knock-down price, chucked onto the resale circuit, sent off to off-price retailers or sold on livestream. People are pretty cool with accepting shoes that are second-hand or even open-box, as long as the style is still on-trend, the footwear brand is still cool and it still feels comfy.
Our footwear buyers frequently comment on the velocity of branded shoes: sneaker culture remains strong, performance footwear is always in demand, and seasonal footwear often moves quickly once price barriers are removed. Children’s footwear also shows consistent turnover.
Brands increasingly incorporate structured grading programs for footwear returns. New or near-new pairs are allocated to outlets or off-price channels. Lightly worn pairs move into reseller networks, where professional sellers understand the nuances of photographing and presenting footwear. Limited or collectible models often move into niche marketplaces where consumer interest remains high.
Footwear liquidation has become one of the most predictable and profitable elements of excess inventory management.
Trend 7: Electronics Liquidation Shifts with Device Disabling Rules
Electronics liquidations have gone through a bit of a shake up now that device disabling tech is really taking off. As a result, manufacturers can remotely knock out gadgets linked to dodgy purchases, rogue sellers, or stolen shipments, we’re talking phones, tablets, laptops, gaming consoles, and smart-home stuff.
When a device gets disabled, it’s basically worthless and you can’t even boot it up. This has turned the secondary market on its head. Buyers are now super cautious, double checking the serial numbers and IMEI numbers on every unit they buy to make sure it’s not been disabled. They’re also pretty careful about where they buy from, only going with sellers that can show them the right paperwork.
Another thing playing a big role in the world of electronics inventory liquidation is the growing problem of e-waste, we’re on track to hit 70 million tons in 2026. As a result, brands are starting to take a more serious look at their reverse logistics strategies, focusing on refurbishing, sending exports to the right places, and recycling materials.
So by 2026, electronics liquidation is all about compliance, verification and being eco-friendly, a whole lot different from what it was just a couple of years ago.
Trend 8: Reseller Growth: Livestream and Micro-Retail as Key Channels
The reseller scene has come a long way. What used to be a small niche of people buying up items from thrift stores or clearance racks has turned into a proper business, a micro-retail operation that can shift a load of excess stock with ease.
Livestream shopping has been the thing that’s really driven this change. Platforms like Whatnot, which you probably hadn’t even heard of a few years ago, are now major players in the inventory liquidation. They deal in everything from clothes and shoes to toys, beauty products, home goods, collectibles and small electronics. With U.S. livestream shopping forecast to top $100 billion in 2026, this is now a serious way for brands to get rid of excess stock.
The pros at livestreaming are pros at running tight operations. They put on regular shows, build an audience and use all sorts of tricks to get people to buy. It’s a mix of entertainment and retail. They’re good at shifting all sorts of stock, not just the stuff that’s in good condition, but also mixed lots, items with worn-out size runs or one-offs that don’t fit neatly into the off-price or discount store model.
Then you’ve got marketplace-based resellers like Poshmark, Depop, Grailed and Vinted. These sellers are just as important. They specialise in niches, really understand pricing and run their inventory like boutique shops. They’re experts in categories that rely on presentation and context, such as vintage, denim, athleisure, streetwear, kids clothing and accessories, making them perfect partners for getting rid of returned stock that’s hard to shift.
For brands, the upside is that it gets stock moved quickly and keeps it off Amazon and Walmart, protecting prices and reducing conflict between different sales channels. Resale has now become a key part of the liquidation strategy.
Trend 9: Rising Amazon Costs Push Ecommerce Brands Toward Liquidation
Ecommerce brands, especially those that are heavily reliant on Amazon, are rethinking their selling strategies due to rising costs. Amazon has made several changes since 2024, increasing FBA storage fees, inbound processing costs, ad rates and disposal fees. Returns costs have also gone up, further squeezing margins.
These changes have had three main effects across our network:
First, brands are liquidating old FBA inventory sooner.
Holding onto slow moving ASINs has become too expensive, especially for bulky items or low margin products. Liquidation is often cheaper than paying long term storage or removal fees.
Second, brands are trimming their Amazon assortments.
Instead of managing dozens of marginally profitable SKUs, many ecommerce companies are concentrating on higher-margin items and liquidating products that no longer justify the cost structure.
Third, some brands are reducing reliance on Amazon altogether.
They are shifting more inventory to off-price retail, reseller channels, and direct-to-consumer models. This rebalancing often results in short-term liquidation spikes as brands exit unprofitable Amazon categories.
Across the secondary market, we see significant increases in ecommerce-driven liquidation loads, particularly in apparel, home goods, beauty, seasonal categories, and lightweight electronics.
This trend will continue as Amazon’s cost structure evolves through 2026.
Trend 10: Stricter Return Policies Improve Liquidation Quality
Return abuse has become a significant issue across the entire retail industry. Wardrobing, bracketing, repackaging, empty-box returns, and serial returning behaviors surged throughout 2024 and 2025. Traditional return policies, designed to remove friction for ecommerce customers, often created opportunities for misuse.
Retailers have now begun implementing behavior-based controls. Instead of blanket policies, many now tailor return allowances to customer behavior. Accounts demonstrating high-risk return patterns may see shorter windows, restocking fees, or stricter requirements. Verification steps have increased for certain categories, particularly electronics and premium apparel.
These policy shifts have had a measurable impact on liquidation quality. Buyers across our network consistently report that liquidation loads from major retailers contain fewer fraudulent or unsellable items than they did just a few years ago. Apparel returns are cleaner. Footwear returns are less likely to contain mismatched pairs. Electronics loads show fewer swapped or tampered devices.
Brands benefit directly. Cleaner inbound returns mean better recovery values, fewer write-offs, and less time spent sorting through problematic items. For the liquidation ecosystem as a whole, these return-policy improvements support stronger downstream performance.
Conclusion
Excess inventory in 2026 reflects a new reality: inventory liquidation is no longer a reactive task that happens at the end of a product’s lifecycle. It has become a planned capability that touches forecasting, sourcing, marketplace strategy, sustainability, and financial management. As tariffs change, retailer expectations tighten, Amazon’s economics shift and consumers are more value-driven than ever, brands can no longer afford to treat liquidation as an afterthought. The companies that do best are the ones that build around it. They define channel rules, maintain vetted partners and align liquidation with overall business goals.
The secondary market has matured into an ecosystem capable of absorbing complexity at scale. Off-price retail continues to grow, discount grocers have become essential partners for short-dated food, and the reseller and livestream economies now act as high-velocity release valves for categories that once created bottlenecks in reverse logistics. Electronics liquidation has become more disciplined and compliance-driven. Return-policy reform is improving load quality. And the best-performing brands are those that embrace these channels with intention and transparency.
As this continues to evolve, liquidation will play a larger role in how brands protect margin, preserve pricing integrity, manage risk, and reduce waste. The companies that build well-structured, channel-safe liquidation programs and treat them as strategic assets rather than emergency levers will be the ones best equipped to navigate the volatility that defines the current market and whatever comes next.