Liquidator Warehouse for Unwanted Gifts

One man buys excess retail items in bulk and sells them at a discount online.
5:06 | 01/12/12

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Transcript for Liquidator Warehouse for Unwanted Gifts
Think of it is a whole other holiday shopping season only cheaper. While the yuletide spending binge may be over there's a new reason people who rushing the stores taking back those unwanted gifts. And with the retailers facing record returns this year approximately five and 151000. Items -- returned from online purges of the loan. Many items -- end up in warehouses to be sold. At steep discounts and here's ABC's GG -- with the ways you could be cashing in for are serious the new deals. -- -- Nerve guns this is definitely holiday return it. Welcome to the graveyard of holiday gifts inside this vast generic warehouse in cranberry New Jersey is -- giant discard pile. All -- goodies we sent back to Santa. All -- know this but here those -- jacks are reborn. This is like the other end of Santa's workshop -- -- A also known as liquidation dot com a booming business that takes returns and excess inventory from seven of the top ten retailers and hundreds of manufacturers. Then resells it at up to 40% off. Executive vice president Casey Roy showed us around the warehouse one of -- they have around the country. We really transform this industry this industry used to be. Where might have been in -- shops -- flea markets soar you know new products -- in some cases and just gone to the you know landfill which is really -- And this is they're busy period after black Friday's early sales is the countdown to Christmas and now the return season. 10% of all that holiday -- gets returned. Online it could be more like 15%. The liquidation business is profiting from the fact that retailers are making returns easier than ever knowing you'll end up buying more if it's easy to return. And yet. There's also that added incentive that if you're gonna allow people to make you know. Returns at that might incentivized tended to by -- account yet by something else they they don't shop anywhere else they become far more loyal and that loyalty. Is a key driver for most retailers expect so that's a reason -- -- -- -- mean there is a real economic reason. To having some -- return. Inside the electronics testing area workers actually listen to these iPods to sort out which -- are broken and which ones can be resold. This guy is in charge of the Xbox it. You have my son of and then there's the long line of flat screen TVs which get tested sanitized and wrapped backed up in their box. These TVs are being sold to car -- Harris who comes to buy in bulk up to three times a week. -- forward to TVs at first then you know -- -- Again. When that time. And now -- justice. He resells the good TVs and fixes the broken ones shopping them all on eBay or Craig's list -- -- the other news. Really good and -- Arnold says he now earns twice as much as he did at his old job installing car -- he's part of a growing parallel economy made up its -- -- -- ignores no bargain when they see it. This -- whole underground economy. Yes that used to be underground -- we've done is we've brought to -- with because -- line. Because it's transparent because of the high level of service that we try to provide -- it's now above ground and it's it's it's thriving business and it's not just home electronics. I think it's good -- There not be a little battery car. You can bid on off season merchandise like a thousand back to school backpacks. -- about to purses by -- and Michael course being auctioned for 200 bucks or ten wedding dresses the going bid. 375. Dollars. God help the poor woman who needs the by the mobile. -- -- for that that's really what else where people are more willing to buy an item that is a name brand. But they don't necessarily need -- -- from a name -- store in many ways the bad economy has made bargain hunting. -- -- yeah that's it I don't you write that the little blue boxes in his seat his bargain hunting right getting that deal. Bargain hunters don't have to -- by the truckload to get -- steal. Anybody can buy individual items on their consumer web site. Second -- but he dot com where you can save a hundred bucks on an iPad which normally costs 700. We have -- -- from the advisable. We have -- punching bag here. We've got weight bench and we have a manual treadmills and you -- -- on -- that absolutely. Absolutely bread price someone else. Always bell and not -- -- rental truck is full of housewares lighting fixtures and the ultimate holiday leftovers we have a Christmas. Nobody wants us army air we're more than happy to storm in -- warehouse. And you keep them until the immigrant talent yes -- regularly because today's tracks is next season's treasure. For Nightline I'm juju Chang in and -- New Jersey.

This transcript has been automatically generated and may not be 100% accurate.

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