How to Decide on the Right Liquidation Auction

With over 1,500 daily auctions on B-Stock, choosing the right one can feel like a big task! There are more than a few considerations that go into picking the right liquidation auction for your business depending on your size and inventory needs. And while no two auctions are the same, once you have a feel for the kind of inventory you’re looking for, bidding on your next lot will come even more naturally. Say you’re only interested in apparel liquidation, you start to learn the marketplaces that suit your needs. Or perhaps you’re looking for a variety of customer returns, you will hone in on the right condition for your customer base.

We’ll cover high-level considerations (along with specific examples) in order to help you search for the right liquidation auction for you.

Open versus closed marketplaces

On B-Stock, there are some marketplaces that you can’t see inventory for unless you are registered for that site, these are known as ‘closed’ marketplaces. You will have to submit a valid resale certificate, along with an application for approval. If your application meets seller requirements, you get approved and can view key auction details, and most importantly, have access to the auction lot manifest. Other ‘open’ marketplaces allow you to view inventory right away, although in order to bid, you will have to register first.

Does this liquidation auction have the products you want?

The kind of products that end up in a liquidation auction are just like what you would see on primary store shelves, except they’ve been liquidated. Reasons companies liquidate include seasonality, over-purchasing, discontinued lines, warehouse storage space, or they received DOT COM returns or in-store returns. It’s also part of many retailers’ reverse logistics strategy.

So maybe you’re searching for a specific retailer’s liquidation site like Walmart, Target, or Amazon because you know you like that merchandise. Another scenario is if you’re searching for a specific product category from any marketplace.

Here are the top product categories for you to consider:

Choose your liquidation type

Not all liquidation is the same! And not all will sell for the same price on secondary markets, either. Let’s break it down.

Overstock

Overstock inventory is inventory that was not able to sell within an efficient amount of time at the retail locations. If you have less experience, overstock could be an easier way to jump into the reselling game since this is brand new inventory in its original wrappings. Some businesses seek out just overstock items because they know these items will fetch higher profits.

Customer returns

Customer returns can be any piece of merchandise that is returned to the retailer (both in-store and online). Returns come in different condition grades since merchandise has been previously purchased and potentially handled, used, or worn. Familiarizing yourself with these different conditions will be an important step in your decision-making process. You won’t want to bid on an auction of Grade C inventory if your customers are only interested in near-perfect cell phones. Other businesses make a living purchasing salvage inventory (items with extensive cosmetic damage or that are non-functional) because they sell off the parts or make their own repairs.

Most marketplaces on B-Stock follow the same uniform product and packaging conditions. This gives interested buyers peace of mind when bidding and buying inventory on B-Stock’s liquidation marketplaces. Take a look:

Also important to note are the packaging conditions.

Scratch and dent appliances

If you’re looking for appliances specifically, scratch and dent inventory is always a hit. These can be washers, dryers, fridges, dishwashers, and laundry units, among other larger appliances, that got bumped or dented during the delivery process. There are also reasons that don’t have to do with functionality at all—like a customer picking the wrong color or size. If you want to read more about appliance liquidation before committing, check out Scratch & Dent, Like New, Salvage: Decoding Common Appliance Conditions.

So between overstock or customer returns, you definitely want to think about what profits you’re trying to make and who you intend to sell to once you’ve received your inventory.

Consider liquidation auction sizes

An important question to ask yourself is ‘How much space will liquidation inventory take up?’ This will ensure you don’t over-purchase more than you can physically store. It’s wise to start small and work your way up to larger auction lots.

B-Stock lot sizes range from parcels to pallets, like LTL (less than truckload) to FT (full truckload). When receiving inventory, consider if you will need to have help unloading your LTL or FTL. Once your shipment is delivered, you have up to 2 hours to unload a truckload delivery and up to 30 minutes for LTL. Unloading times may differ from marketplace to marketplace, review the marketplace-specific Shipping page or FAQs.

Here’s a breakdown of lot sizes:

Case pack

This is the standard shipping practice used for mobile phones. A case pack is a box with individual slots for wrapped mobile phones. These boxes usually range in size from 30 to 50-unit case packs.

Parcel

These are individual boxes for small shipments and physically small items like jewelry, small electronics, or mobile phones. Mailing parcels through UPS or FedEx is common for these shipments.

Less than truckload (LTL)

This lot size takes up only a portion of an entire trailer. Multiple shippers share space on the same truck only paying for their portion. Anywhere from one to 10 or 12 pallets usually make up an LTL. Residential deliveries (with a liftgate) are allowed on LTL shipments.

Full truckload (FTL)

In a full truckload, the trailer is dedicated to one shipment only. 24 pallets are usually the standard amount of freight in an FTL. Generally, residential deliveries are prohibited as a buyer must have access to a receiving dock for Full Truckload shipments.

What are the different shipping types?

Shipping terminology can be confusing at first, but it’s necessary to understand when choosing the right auction for you.

Buyer arranged shipping

You are responsible for contracting a carrier and shipping the product from the seller’s facility to yours.

Seller arranged shipping

The seller will make all of the arrangements, and you pay the additional shipping cost on top of your winning bid.

Free shipping

This is exactly what it sounds like – free! Free shipping can be found more on our B-Stock Supply marketplace (which we go in-depth on down below). Or, some marketplaces offer free shipping on a certain amount of mileage.

Fixed cost shipping

Buyers pay a flat rate for shipping regardless of where you are located geographically.

Binding shipping

Binding shipping depends on factors like zip code, weight, density, number of pallets, and how many pallet spaces will be used during transport. It’s also the most common shipping method on B-Stock!

Find out more details on different auction lot shipping methods if you’re still unsure which is right for you.

Still unsure? Browse liquidation auctions on B-Stock Supply

When deciding on the right liquidation auction, B-Stock Supply is a good place to start. Buyers can start smaller on B-Stock Supply, think cases and 1-2 pallets worth of inventory at a time. You can dip your toes in the water with smaller lots if you don’t have the budget for a full truckload of merchandise right away. Other benefits of B-Stock Supply include a wide range of inventory and reliable seller ratings.

As we mentioned, many of the Supply sellers offer free shipping! This is the perfect way to get smaller lots and cheaper shipping on much of the same merchandise offered by our private retailer marketplaces. If you don’t have to allocate funds in your budget for shipping you can use that money to make your bid more competitive.

With so many auctions to choose from, B-Stock has all of your liquidation needs covered. From overstock to customer returns, you can find the world’s leading retailers listing their liquidation inventory on B-Stock marketplaces. The sooner you start looking, the sooner you can find the right liquidation auction for you. View live auctions happening now!