With the strongest holiday shopping season in recent history drawing to a close, Liquidation.com ( www.liquidation.com) – the leading online auction marketplace for surplus inventory from top retailers, warehouse clubs and manufacturers – today begins gearing up for potentially record-level inbound volumes of returned and overstock products.

With various measurement firms reporting that 2010 overall holiday retail sales are expected to finish four percent higher than 2009 – and online holiday sales projected to be up almost 15 percent -- Liquidation.com anticipates closing significantly more auctions in January 2011 than the previous year in order to keep pace with the supply. In addition, the company anticipates record sales through its consumer website, Secondipity ( www.secondipity.com) – and its other consumer shopping channels.

Several of its largest online and offline retail clients have already advised Liquidation.com that the inbound flow of returned and overstock product will ramp quickly, and the company has increased staffing at its five national warehouses in anticipation. This increase in inventory will present more purchase opportunities for the small business owners that use Liquidation.com and the consumers who buy on Secondipity.

“This could be the biggest returns season we’ve ever had,” said Cayce Roy, executive vice president of Liquidity Services, Inc. “The combination of more-relaxed returns policies and increased consumer confidence means that retailers will see a higher volume of goods flowing back to their stores following the holidays. Through our Liquidation.com and Secondipity marketplaces, we offer smart retailers valuable tools for balancing their supply chains and maximizing recovery on their returned and overstock products, while offering small business owners and individuals unequaled access to high-quality product at great prices.”

Liquidation.com anticipates the top returns for the season to include hot holiday sellers such as iPads, iPods, smartphones, HDTVs, and newer gaming consoles like the Xbox Kinect and Playstation 3. The site also expects high volumes of overstock product such as flip phones and DVD players, which have been replaced by more updated technologies, and 3-D televisions, which sold more slowly than expected this holiday season.

Liquidation.com works with seven of the top 10 retailers in the U.S., and in turn helps hundreds of small and medium-sized businesses through its selling of surplus, overstock and consumer returned inventory. Auction sizes include truckload, pallet, small package and single-unit, while product conditions range from new to consumer returned and salvage. More than 1.4 million registered buyers source inventory and merchandise from Liquidation.com, with access to inventory in warehouses located in Fullerton, CA; Garland, TX; Plainfield, IN; Bentonville, AR; and Cranbury, NJ.

About Liquidation.com

Liquidation.com is a Liquidity Services Inc. marketplace where professional buyers and end users can source commercial surplus inventory and government surplus assets in an online auction environment. Bulk lots are sold by the truckload, pallet or small package, as well as single unit lots, and conditions range from new in a box to customer returns and used. Its wide variety of product categories includes apparel, computers, electronics, housewares, industrial equipment, vehicles and much more. For more information visit: www.liquidation.com.

About Liquidity Services Inc.

Liquidity Services Inc. (NASDAQ:LQDT) and its subsidiaries enable retailers, industrial corporations and government agencies to market and sell surplus assets quickly and conveniently using online marketplaces and value-added services. The company, a member of the S&P SmallCap 600 Index, operates multiple global e-commerce marketplaces for surplus and salvage assets across the retail (Liquidation.com, UK-Liquidation.com), government (GovLiquidation.com, GovDeals.com) and capital assets (NetworkIntl.com, Liquibiz.com) sectors. Liquidity Services is based in Washington, D.C., and has approximately 700 employees. Additional information can be found at: www.liquidityservicesinc.com.

Copyright Business Wire 2010