WarehouseDirect Sustainably Clear Excess

The median liquidation recovery rate across all product categories is approximately 9% of retail value, according to Amplio's Q3 2023 Liquidation Auction Report. Apparel performs worst at 1.4–2% median recovery, with over 80% of auctions receiving zero bids. After processing costs, marketplace fees, and depreciation during selling cycles, most companies net very little from liquidation. There is also always the risk of hurting your brand reputation and customers online learning they can just wait to buy until liquidators get the inventory. 

With LiquiDonate, you don’t have to worry about all of that. Donation eliminates the risk of brand dilution from products appearing on discount marketplaces. Not only can you protect your items from resale, but also you can seek tax rebates that may far outweigh the amount you would net from Liquidation. Many of our partners also can reduce customer churn and build loyalty by introducing LiquiDonate as a sustainability initiative and getting closer to zero waste goals.

So when it comes to Liquidation vs. LiquiDonate, it’s always better to donate.

The national average landfill tipping fee is $62.28 per ton according to the EREF 2024 Report–up 10% year-over-year. When including transportation costs (up to 60% of total reverse logistics cost), sorting, and brand-protection verification, total destruction costs typically range from $1–$8 per unit for consumer goods. Products with hazardous components (common in beauty/CPG) can cost significantly more under RCRA-compliant handling. There is zero financial recovery from destruction, compared with a potentially significant financial recovery from donation

LiquiDonate does not give tax advice, but we recommend looking up IRC Section 170(e)(3): C-corporations that donate inventory to qualified nonprofits can claim an enhanced deduction equal to cost basis plus half the unrealized appreciation, capped at twice the cost basis. At the 21% federal corporate tax rate, this can generate substantial tax savings for many organizations.. Always consult a qualified tax professional to confirm eligibility and deduction amounts for your specific situation.

Donation at scale requires real infrastructure: matching inventory to vetted nonprofits, coordinating fulfillment, generating tax documentation, and managing compliance. Without it, brands spend 3+ hours per week on coordination at an average cost of $360–$400/month in labor alone, before accounting for shipping, packaging, and paperwork. LiquiDonate's service fee covers all of that:, dedicated support, immediate nonprofit matching, fulfillment coordination, and impact reporting. And it is intentionally priced to cost less than liquidation, warehousing, or landfill disposal. Read more about why donation logistics isn't free from our CEO here.