Liquidation Products are the leftover of capitalism; there are two ways that these products are considered ''Liquidation'', Returns and Time-Out Products; let me explain from the Industrial perspective.
Imagine how many returns Amazon receives per day; just having in count that it has 150.6 Million users worldwide and the return rate it's between 20% to 23%. That means that Amazon has to deal with more than 30.000.000 returns per day, which It's tough to verify all of them and reinsert into the stock. That's why it's easier to sell all these million products per lot in auctions; at least in this way, the big corporations recover part of the money.
There are many policies in these huge "Super Markets'' that we know as Walmart, Best-Buy and others... As soon as the products are set-up on the shelf, have a regressive time to be sold, these periods are usually concise since every day there is a launch or a new, improved product occupying more spot in this retail shelves. When a product X has done time and hasn't been sold, it's time to go to the auctions because it's the best way to mitigate losses. E-commerce companies like this can procure this kind of merchandise in said auctions, providing more favorable prices between 25% to 50% depends on the product.
I considered everyone wins in this type of supply chain, from the manufacturer to the customer. Even for the big corporations, since the liquidation products for them, it's something contemplated in their margins just a small portion of the entire financial pie.