Red flags are everywhere, not just on relationships and people, but also in other aspects and areas. The booming liquidation industry is swamped by them due to popularity and how more companies and businesses are relying on these lots.
The industry offers real opportunities for resellers and bargain hunters. However, this means it is a magnet for scammers as well.
As liquidation lot scams in 2025 become more common and even sophisticated, it is crucial to learn how to recognize them.
The more you navigate the industry and work with lots, you start recognizing the signs and specific elements that say “alert.”
At Coastal Surplus Solutions, we help our clients and partners identify liquidation lot scams. More than identifying, we want them to fully avoid the possibility.
We do this by teaching them how to recognize fake deals, fraudulent websites, and costly mistakes. All connected to the way the acquisition is handled, and the logistics planned.
This guide will break down the most common red flags you must identify. Starting today, you can write down how to spot fraudulent liquidation deals.
Red Flag 1: No Inspection Allowed Before Purchase
Legitimate liquidation platforms almost always allow some for of inspection.
While liquidation lots and pallets work around the “mystery” of the contents, this does not mean you don’t have access to certain information.
Photos, manifests, in person reviews, and many more options are available.
Not everyone allows for in person inspections. However, at least manifests and photos should be provided. One of the two or both simultaneously.
If a liquidator does not allow any form of inspection, then you know this is a threat.
No legitimate and reliable seller will refuse all advances or options for inspection. They understand buyers need some form of confirmation, and this can be done without “reducing” the lots value.
In order to avoid the hassle, you can directly go for reliable and trusted liquidation marketplaces. This includes Liquidation.com, Viatrading.com, and Select Liquidation.
They all encourage buyers and surplus sourcing partners to inspect the product conditions. All of it before bidding or making a final decision.
Relying on trusted platforms is a way to avoid anonymous websites or social media ads. They all look appealing, but lack the common security and safety protocols for buyers.
Red Flag 2: Prices Too Good to Be True (e.g., $1.000 iPhone Pallets)
Some prices and options sound too good to be true out of the bat.
An iPhone pallet for less than $2k? You know it has to be a scam.
However, when is it “too good”?
Determining when a price is too good to even consider it requires proper market research. Always evaluate liquidation lots and compare the ones that share characteristics, like brand, type of items, and the seller.
If you notice a significant difference in one price compared to others, it is 90% certain it is a no-go.
Not everything is about the price itself, either.
Scammers usually offer a specific percentage of sellable items on their pallets. While there seems to be nothing wrong with it, the key is putting it into perspective.
Most liquidation lots have around 60 to 70% sellable items. If a seller offers a pallet of about 90% sellable items, everyone will bid for it. This is a major concern in all of this.
The same happens when massive discounts are open for brand-name pieces or trending and high-demand goods.
Before bidding, keep in mind the following:
- Fake liquidation websites are usually all-over social media ads. They opt for urgent language and full of call to actions, like “Act Now!” or “Only 3 Lots Left!”
- Real liquidation lots from trusted sources rarely feature high-demand pieces. At least, not at unbelievable prices.
- Check the website’s domain age, BBB listing, and online reviews.
How to Avoid Them 100%? Use Escrow Services for Large Orders
Large liquidation purchases should never come from impulsive decisions. Neither should they come from unfamiliar or new sellers, be it to you or on the platforms you use.
Always insist on using an escrow service. This adds a layer of liquidation buyer protection by ensuring funds and protecting them. they won’t be released until you receive and verify your goods.
While they may feel extra, escrow services are standard practice. They go over reputation and can arrange deals.
At Coastal Surplus Solutions, we can handle all negotiations, work with you on liquidation and logistics. We simplify the process and keep you safe from all types of scams.
we can offer all types of liquidation buyer protection tips and support your profits and investment.
As mentioned by FasterCapital, using professional services already brings around 25% in cost savings. This maximizes your profits and offers a new perspective.
Feel free to contact us today for liquidation deals, surplus goods, and sourcing as a whole.
