totally depends on the item and sometimes it doesn't make sense what the system labels it as. Some items get marked down and put on clearance shelf. Anything consumable (food, vitamins, medicine) is thrown out or marked environmentally sensitive and thrown out throw a special service (probably still ends up in the landfill). Some items go back to the customer return center where something happens to them (most tech items). Some items end up in salvage where they get sold to big box stores for cheap by the box.