Many buyers have built or expanded their business exporting liquidation auctions lots bought on B-Stock. A recent survey of our buyers revealed that the largest category being exported is apparel, followed by footwear and consumer electronics. So where do buyers export this liquidation inventory? The answers may surprise you!
What is Exporting?
To export is to ship commodities to another country for sale, exchange, etc. Businesses that sell their goods and services to customers in other countries are exporting them. They are producing them in one country and shipping them to another. Exporting is one way that businesses can rapidly expand their potential market.
- Expands purchasing power- with additional avenues to export goods and make money versus just selling in the U.S or online, business buyers can, in theory, purchase more.
- Promotes company growth- venturing into the exporting business will usually require a presence or representation in the foreign market. This may mean additional staff, leading to company expansion.
- Gives access to a larger market- the domestic market may be saturated already with similar inventory. By branching out, exporters have access to markets that don’t have the same inventory on hand.
- Increases sales and profits- selling goods and services to a brand new market boosts sales and increases revenues. Once export start-up costs have been covered, the added foreign sales over the long term increase overall profitability.
- Compensates for seasonal demands- if a company’s products or services are only used at certain seasons domestically, it may be able to sell their products or services in foreign markets during different seasons. This reduces a business’ dependence on the domestic market and helps provide stability during seasonal fluctuations.
- Diversifies- selling to multiple markets allows companies to diversify their business and mitigate risk by not having all of your eggs in one basket.
- Provides new knowledge and experience- going international can provide valuable ideas and information about new technologies, new marketing techniques, and foreign competitors.
- Extra Costs- there are up-front costs for developing new promotional materials, travel, and other administrative costs associated with marketing the product internationally.
- Financial Risk- collections of payments are not only slower than domestic sales but also more complicated.
- Export Licenses and Documentation- some companies have to obtain an export license to export their goods or services. The documentation required is certainly more involved than for domestic sales.
- Finding market information- finding reliable information on foreign markets can be more difficult and time-consuming.
Overall, the advantages of exporting outweigh the challenges. Nevertheless, before committing resources to get started, it’s important to thoroughly weigh the risks and benefits of exporting.
Who Can Help?
Despite the benefits of trading internationally, less than one percent of America’s 30 million companies export. This is likely due to a few concerns: data reveals 39 percent say their goods are not exportable and 37 percent simply don’t know how to start.
If you are located near a major metropolitan area, there is probably a U.S. Export Assistance Center near you that can provide help. It’s a resource you’ll definitely want to take advantage of if you’re just getting started!
Additionally, Small Business Development Centers (SBDCs) in your area can provide one-on-one counseling and a wide variety of training programs for small and mid-sized companies that are exporting or considering it. Find the SBDC closest to you.
To check out online auction lots available for export, get started on our marketplaces page. Be sure to read each marketplace’s Terms and Conditions for any exporting rules and restrictions.