Ownership Submission
FORM 5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
Form 3 Holdings Reported
Form 4 Transactions Reported
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person *
GROSS PATRICK W
 2. Issuer Name and Ticker or Trading Symbol
LIQUIDITY SERVICES INC [LQDT] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)

C/O LIQUIDITY SERVICES, INC., 1920 L STREET, N.W., 6TH FLOOR		 3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
09/30/2012
(Street)


WASHINGTON, DC 20036		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Reporting
(check applicable line)

_X_ Form Filed by One Reporting Person
___ Form Filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned at end of Issuer's Fiscal Year
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Amount (A) or (D) Price
Common Stock 12/19/2011   G 533 (1) D $ 0 5,200 D  
Common Stock 12/21/2011   G 6,230 (1) D $ 0 5,200 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 2270 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned at End of Issuer's Fiscal Year
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option $ 12.89             (2) 04/03/2016 Common Stock
20,000
  20,000
D
 
Employee Stock Option $ 14.75             (3) 10/02/2016 Common Stock
11,271
  11,271
D
 
Employee Stock Option $ 11.19             (4) 10/01/2017 Common Stock
10,272
  10,272
D
 
Employee Stock Option $ 11.66             (5) 06/03/2018 Common Stock
4,457
  4,457
D
 
Employee Stock Option $ 8.55             (6) 04/28/2019 Common Stock
21,086
  21,086
D
 
Employee Stock Option $ 10.7             (7) 02/01/2020 Common Stock
18,612
  18,612
D
 
Employee Stock Option $ 14.3             (8) 02/01/2021 Common Stock
15,012
  15,012
D
 
Employee Stock Option $ 42.31             (9) 02/01/2022 Common Stock
5,328
  5,328
D
 
Restricted Stock Grant $ 42.31             (10) 02/01/2022 Common Stock
851
  851
D
 

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
GROSS PATRICK W
C/O LIQUIDITY SERVICES, INC.
1920 L STREET, N.W., 6TH FLOOR
WASHINGTON, DC 20036		   X      

Signatures

/s/ James E. Williams, by power of attorney 11/14/2012
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The gifted shares reported in this Form 5 were reflected in the adjustment to the beneficially owned securities held by the reporting person as reported in the Form 4 filed March 2, 2012. As a result, the total of 5,200 directly held shares remains unchanged from the previous report.
(2) These options became fully vested on April 3, 2008.
(3) These options became fully vested on October 2, 2007.
(4) These options became fully vested on October 1, 2008.
(5) These options became fully vested on June 3, 2009.
(6) These options became fully vested on February 18, 2010.
(7) These options became fully vested on February 1, 2011.
(8) These options became fully vested on February 1, 2012.
(9) These options have a one-year vesting period such that 100% of this option grant will vote on February 1, 2013.
(10) These restricted shares have a one-year vesting period such that 100% of this restricted share grant will vote on February 1, 2013.

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