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"Vendor Trash" is a derogatory term used to describe items which serve no purpose other than to be sold to in-game stores for money. This mainly occurs in RPGs, and MMORPGs; the most well-known type of vendor trash is extremely poor quality equipment, dropped by enemies in low-level areas, such as a sword that does less damage than the one warriors start with, or a "broken" chestplate that only adds 1 or 2 to a player's armour level. These items are only "useful" to absolute beginners who do not have anything equipped to that item slot yet.
Another, slightly more recent type of vendor trash takes the form of items which are literally useless other than their value to vendors, implemented to avoid the related issue of inappropriate loot, where, for example, an ordinary wolf will inexplicably be carrying gold coins, or a giant spider will have an enchanted bracer on them. This second type of trash would have wolves drop wolf pelts or claws, items which cannot be used for any purpose, but which can be sold for money to vendors. Although this adds a step to the cash reward process (and takes up a slot in your inventory), it is slightly more realistic than a wild animal carrying money. Of course, this brings up the question of why exactly a blacksmith would want to buy broken spider legs and venom glands, but it's really best not to think about these things.
Although "vendor trash" is an inherently derogatory term, and it generally refers to broken equipment and animal body parts, some games feature items with no purpose other than as valuable trade commodities that take the form of rare and expensive items. For example, Resident Evil 4 and 5 feature valuable gems and treasures lying around its levels which can be sold at the store for more money to buy items. Similarly, in Dead Space, Isaac Clarke can retrieve electronic semiconductors made from rare materials ( gold, ruby, and diamond) to cash in at the USG Ishimura's Store kiosks.