Where open box appliances come from
The largest source is customer returns. A shopper buys a fridge at Lowe's, the delivery driver gets it to the front door, and it turns out to be two inches too tall for the cabinet opening. Refused at delivery, the fridge goes back to the store as a return. It cannot legally be resold as new, even though it has never been used.
The second source is store displays. Big-box and showroom appliances get rotated regularly to keep the floor fresh; the old display units are sold off to liquidators. They've been opened, plugged in for demos, and lightly handled, but never installed for actual home use.
The third source is unboxed inventory from freight damage — units whose original cardboard packaging was destroyed in shipping, but the appliance inside is unharmed. They cannot be re-shrink-wrapped as new, so they're sold open box.

