Hi M
First thing you need to make sure of with liquidated stock is that you are dealing with the tender holder, not a broker.
Most liquidation tender holders will not supply in small lots, however some do. Jimmy of course from ppwdg, and another out of Cali is viatrading.
Buying the tender holder assures you of getting the right price, the best price, and of course you more you buy from these guys the better that price per unit gets.
What you will find is some of these companies will not give you a choice as to what type of stock you can purchase, especially if you are buying buy the truck load, so you will be getting clothing from across the board.
Overstocks, shelf pulls, customer returns, salvage (damaged) and so on. The percentages vary between companies, but some companies do specialize in cleaner loads, but at a higher price of course.
It's an industry that you can make money in over time, but should never be seen as a quick money making venture as loads can differ quite a lot in margin.
I look at liquidation as a blue chip investment, you can make money over time if you put the right procedures in place. Sure, a good load can make you seriously good money on a short time investment also, but you risk a lot if you have everything riding on it.