These distressed goods are generally sold in social media, online sites, auctions or a separate store for them.Generally the distressed goods and export surplus are sold in secondary market.
People buy these goods because of the comparitively lower price for the almost same product. They need the product because of the aspirational value but mostly they can not afford the product in its full price. Those people prefer these distressed goods. Moreover some people may collect these items specifically.
But one must be able to evaluate the worth of the product before buying. There are specialists to work on these who can evaluate the value, the amount of damage, originality and quality.
Distressed goods have high demand in specific categories like clothing, paintings, home decorations, shoes etc.
Sometimes costly products are insured and when an insured work becomes badly enough damaged, the carrier pays the claim and assumes possession of the work.
The goods become distressed because of minor damages due to mishandling, damaged during shipping, deliberately made of low quality, for marketing reasons, wrong manufacturing or returns from customers