Update: 2/4/2008: If you want to take action against this company, report your with Liquidation.com to the FBI tips page, I can't put the link here because it is not allowed by ebay but you can find it if you do a search for "report internet fraud". You can type in your browser: tips.fbi.gov. I have done it. They may not be able to shut them down but maybe they can warn other potential victims of this company.
Update: 12/3/2007: After writing the guide below I have received feedback from people who were also ripped off by this company. The tragedy is there is nothing that we as consumers can do to prevent them from staying in business. After you ready the guide, you will better understand these comments. Liquidation.com hired a good lawyer (s) or a good bullshit artist to write the contract that they have unsuspecting buyer agree to before you purchase from the site. They basically protect themselves and rip people off so they can keep doing this for years to come.
My original Post:
Ebay recommends Liquidation.com but beware when buying from them. If you bid on a lot at Liquidation, there is a very good chance you will purchase something that you won't be able to resell at a profit or even at cost. This company has nothing in place to protect the buyers, their main purpose is to make money for the sellers and for themselves. They are working for the sellers and they take a cut of the total sale cost of the item lot. Before I go into my personal experience with them, here is some information about this company. Liquidation.com is an auction site for big wholesale lots, closeouts and return merchandise from major retails. The hook of this site is that they have designer items especially clothing and shoes and things like computers, tools, electronics. Sellers list their items with liquidation.com and Liquidation.com stands to make more money if the lot sells high. So the bidding doesn't end until someone stops bidding, basically it could go on and on. Buyers bid on the items in hope to get a good lot to sell on places like Ebay. However, the items you will receive are basically junk, defective items and in case of clothing, the things that didn't sell on the clearance rack of stores like Macy's, Sears, etc. If buyers didn't want to buy these items on the racks for ie. $3.00 or less, they won't want to buy from sellers on eBay for ie. $10.00.
If you do a search for liquidation.com complaints, you will find a number of complaints from disgruntled buyers and sellers. There are also complaints about this company at complaints.com. The basic complaint is that the sellers are allowed to misrepresent their product, it is the classic bait and switch. For example, when you bid on a lot you think you are buying designer clothing but you get the no name junk that has been sitting on the clearance rack of stores like Filene's, Macy's, etc. These are items that have rips on them, have been worn and returned or just that were too ugly that no one purchased it even at 80% off on the clearance racks. You will be paying more for any of the item than you would pay at a clearance rack. The sellers of these lots will throw in a couple of designer labels like Tommy Jeans so that you won't win the dispute with liquidation because they put a couple of designer labels on a 200 piece lot.
This company has no checks and balances to assure that the seller is not being taken advantage of:
- There is no feedback or buyer comments section
- There is no rating of buyer which is unheard of in auction sites
- Any questions to the seller about the auction will not be answered
- After the auction is supposedly closed, bid can go on an on as long someone is willing to bid
- All emails and calls to liquidation.com will be answered by a couple of people who basically tell you that you should have read the auction more carefully
- If they get upset at you for any reason, they will close your account
- There is no assurance that the buyer, his family or his friends isn't also bidding on the lot to raise the price and keep the auction going
- There is no assurance that the buyer's family, friend, cohorts, etc isn't the one bidding against you
- There is absolutely no protection after you win and pay for this item.
Now my story: About two years ago, I wanted to start selling on Ebay so I did a search on the internet for wholesalers and liquidation.com was the first thing that popped up. Since it was such a popular search and recommended by Ebay, I started bidding on an lot right away because it clearly stated I was bidding on designer clothing and listed the names of the designers. I won the auction and basically purchased each item for about $7.00 a piece. When I received the lot, 99% of the clothes would sell only at a yard sale for $1.00. I was so disappointed and furious to have been scammed, I filed a dispute with Liquidation.com. They asked me to take pictures of the lot, send them a description of each item and I spent hours documenting the junk I received and I expected to win the dispute. Needless to say, I got a very fast response that the lot wasn't grossly misrepresented since I got about 5 designer labels out of 200 pieces so there was designer labels in the lot.
I filed a complain with the Better Business Bureau and they started an investigation but found there was nothing they could do because Liquidation.com made sure they have good lawyers writing their disclosures. After the complaint with the BBB was filed, their closed my account so I couldn't get more information on the lot but I had already downloaded everything I needed to file the dispute with the BBB. Before they closed my account their advice to me was that if I wasn't happy with the lot, I should resell it with them. I refused to do it before I would never deceive another person in that manner.
The first thing that should have tipped me off that this was a scam was that they have a very detailed section about how to file a dispute. I guess they receive disputes on a regular basis but have put very good disclaimers in place to prevent them for having to refund any money to buyers. The buyer also pays some fees after the transaction is over but I didn't know that. They added another $100+ to my invoice. The whole thing is just a very organized effort by a couple of people to take advantage of people who are trying to find a good wholesaler.
This is my personal experience with this company and this guide is solely intended to relay my experiences with this company to other potential naive buyers.
So buyer be aware and before doing business with any company, please research them carefully, I will definitely do so from now on. Unfortunately, this company is still hurting buyers and will continue to do so until a class action suit is brought again them.