I recently bought two lots of consumer electronic items from seller "foxtrot_r" on liquidation.com.  The items were listed as returns and there was no mention of defective merchandise or broken items (said "secondhand quality items consisting of returns, clearance, and overstock").  In both lots everything was returned due to some sort of defective issue or missing parts.  These "returns" are cherry picked, the best items returned are resold by that retailer or somewhere like overstock, the leftovers are sold on liquidation.com. 

For example, included in the lots were 4 ds lites, all of them had broken/defective screens, and even had receipts taped to each one saying what the problem is when it was originally returned.  Additionally, I got about 6 guitar hero/rock band guitars and all of them were returned due to button functionality issues.  The thing that is really annoying is that all of these items had receipts taped to them with the problem clearly written, yet no mention of this in any of the liquidation.com auctions (and pictures taken strategically to not show the receipts).

To be fair, I came out ok and should make a little money, but it was more luck than anything else.  I spent around $900 total on the two lots and one of them had several items not listed in the manifest that I was able to get over $200 for.  There was also a few returns with incorrect statements or easy fixes (i.e. people made up something wrong with it to return it, but again, the item was only included in the liquidation.com auction because Liquidation.com THOUGHT it had the problem).  An example of an easy fix was a camcorder that was brand new but returned because it was missing the battery, I bought a new battery on ebay for $10 and now that it is complete it should sell for over $100 versus probably $20 "as is" with no battery.  Without those I would have barely broken even with lots of time and effort spent.

Overall, I do not think I will buy on liquidation.com again unless I can get prices based on the assumption that all the items are broken (things like broken ds lites still sell pretty easily for $50 or more on ebay).  Its simply to much risk, I made about 50% on an auction I got cheap but then lost a little on a more expensive auction, you simply have to assume nothing works correclty and in most cases the bidding on liquidation.com approaches the prices you can sell good condition used versions on ebay (not broken ones).

Also for those thinking about doing it, I live in Dallas, TX and bought from stuff in their local warehouse, with their expensive shipping rates its almost guaranteed to be more than you can make back (would have been over $400 on the $900 worth of stuff I bought).  If you do buy, you should only buy from a location near you where you can pick up instead of ship, I always searched solely for things at the Dallas warehouse.  Additionally, never base your bid on a few high dollar items, they are almost certainly broken.  I overbid on one of my auctions because it had 3 ds lites I thought would be worth over $300, but instead got less than $150 for them as they are all broken.