Online clearance auctions connecting buyers with sellers of excess, returned, refurbished and clearance inventory

Selling excess inventory through online auctions can be a great way for manufacturers and retailers to quickly and efficiently clear out their excess and returned inventory. Here are some general steps that sellers will need to follow when they are looking to get started selling off excess inventory through an online clearance auction platform:

1. First, you’ll need to choose an online clearance auction platform. There are several online auction platforms that specialise in clearance of excess inventory. Be sure to do you research and select a platform that’s both well-established and has a large network of buyers.

2. Once you’ve selected a platform, you’ll need to register as a seller. For this process, make sure you have your company’s financial information on hand, as well as a good idea of the kinds of goods you plan on selling.

3. Now it’s time to submit your inventory to the platform for auction. Each clearance auction service will have a different process for this, but regardless of the solution you’ve selected, you’ll want to be sure to provide accurate and detailed information—as much as you can reasonably afford to—about the condition, quantity, and value of the inventory. Further, buyers always appreciate seeing pictures of the lots they bid on, so be sure to add these if possible.

4. Many platforms will prompt you to set a reserve price for the inventory to ensure that you receive a minimum acceptable amount for the items. Sellers often base reserve prices on the market value of the items and will take into account any fees or costs associated with the auction. Some solutions—like B-Stock—find that a no-reserve policy actually benefits sellers, as the low price hooks bidders who then compete and drive the price up.

5. Promote the auction to potential buyers by using the platform’s marketing tools or by advertising on your own channels. The best online auction solutions—B-Stock included—will take care of this part for you, and will dedicate their marketing team to driving traffic to your listings.

6. With many solutions, managing the auction comes next. As bids roll in, sellers have to monitor the pricing and communicate with potential buyers to answer any questions they may have. Once the auction is over, they communicate with the winning bidders to arrange for payment and shipping. With B-Stock, there is no need to monitor your auctions in real time. Further, payment and shipping instructions are handled automatically by the platform

7. Finally comes evaluating the results. After the auction is complete, measure your recovery versus the time you spent creating and managing the auction. B-Stock’s dedicated account managers can track your recovery data for you over time, as well as leverage network-wide data to identify opportunities for improvement in future auctions.

Again, a traditional online auction clearance solution may require you to perform all of these steps to varying degrees. Sellers on B-Stock can be as involved as they want in the auction process, but need only be responsible for the first three steps on this list. Depending on the B-Stock subscription level that you select, your experience selling on B-Stock can be fully managed. Simply submit your manifests to our team, wait for the auction to conclude, and follow the shipping instructions delivered in the email notifications. The rest of these steps will be handled by either our team members or by automation features built into the platform.

There are many reasons why a seller might have extra goods on hand, each translating to a different type of clearance stock. Retailers or manufacturers clear out the following types of stock through clearance auctions:

1. Overstocked items that were overproduced or over-purchased and cannot be sold through regular channels

2. Discontinued products that are no longer being produced or sold by the manufacturer

3. Seasonal goods that are out of season and cannot be sold through regular channels— Think holiday decorations in the summer months or swimwear in the winter

4. Customer returns thay shoppers have sent back, often for reasons other than quality—perhaps a customer finds the item they ordered doesn’t fit right, appears a different colour or texture in person, or arrives too late, or maybe they simply realise they didn’t really need it in the first place

5. Pre-owned items that have been used and refurbished to like-new condition or those that remain in good enough condition to be resold

6. Closeout items that are being sold at a reduced price to quickly free up space for new products in warehouses and show floors

In general, any product that a retailer or manufacturer needs to clear out quickly can be sold in a clearance auction. In fact, all of these item types are regularly sold on the B-Stock platform. Our experts can offer you further guidance on effective auction strategies for moving out each of these in a fast, efficient, and cost effective manner.

Retailers and manufacturers can sell the following item categories on B-Stock:

-Apparel, Footwear & Accessories
-Appliances
-Automotive Supplies
-Books, Movies & Music
-Cell Phones
-Computer, Equipment & Software
-Consumer Electronics
-Furniture
-Groceries
-Health & Beauty
-Home & Garden
-Industrial Equipment & Building
-Jewelry & Watches
-Office Supplies & Equipments
-Sports and Outdoors
-Toys, Kids & Baby
-Televisions
-Mixed Lots
-Other

Note that these are the official categories that B-Stock officially recognises, but sellers can auction any items they like on the platform as long as they do not violate the restricted items policy.

The terms and conditions for online B2B auction-based clearance can vary depending on the platform, but there are some common components that you’re likely to encounter as you research solutions. These include:

1. Commission fees
A platform may charge a commission fee on the final sale price of the items sold in the auction, usually a percentage of the final sale price.

2. Buyer’s premium
Some solutions may charge a buyer’s premium, an additional fee paid by to the winning bidder on top of the final sale price.

3. Reserve pricing
Some platforms may allow sellers to set a reserve price, or a minimum sale price. Even if users bit on an item, it is not sold unless this reserve price is met.

4. Payment terms
Auction services will specify terms such as the types of payment accepted and the timeframe for payment.

5. Shipping and handling
The platform will provide information about the shipping and handling of the items sold, including which party is responsible for organising and paying associated costs and how the items will be shipped.

6. Returns and refunds
A platform should provide information about the returns and refund policy for auctioned items, such as outlining qualifying circumstances, and which party must covering associated costs.

7. Auction rules and bidding
A solution may provide rules and guidelines for bidding on listed items, such as acceptable bidding increments, and any restrictions on bidding.

8. Dispute resolution
The platform will likely provide information about the dispute resolution process in case of any issues that arise between buyers ans sellers over accuracy of listings, quality of goods, shipping, payment, etc.

The burden is on the subscriber to carefully review and understand the terms and conditions of the platform before listing any items. While terms and conditions will vary from contract to contract, you can view B-Stock’s generalised terms and conditions here or reach out to us with any specific questions.

To determine the value of excess inventory when planning clearance auctions through traditional clearance methods, retailers or manufacturers will need to do the following:

1. Assess the condition
Determine whether the items are new, refurbished, or used, and whether they are in good condition, damaged, or defective. The condition of the inventory will affect its value in the auction.

2. Determine the market demand
Determine what customers are willing to pay for similar products and how much competition there is in the market. This will help you set realistic prices for your inventory in the auction.

3. Consider the original purchase price
This can give you an idea of the minimum price you should accept in the auction to ensure you at least recover some of your costs.

4. Estimate the potential sale price
Based on the condition of the inventory, market demand, and original purchase price, estimate the potential sale price for each item or lot in the auction. Consider setting a reserve price to ensure that you do not sell items for less than their minimum value.

5. Seek the advice of experts
Consider seeking the advice of experts in the industry, such as clearance specialists or appraisers, to get a more accurate assessment of the value of your excess inventory.

By following these steps, retailer and manufacturers can estimate pricing for their excess inventory when planning clearance auctions. With an Enterprise-level subscription to B-Stock, however, sellers will enjoy a fully managed experience. They need only send us a manifest detailing what they would like to sell, and our team will estimate your recovery rate based on over a decade of network-wide sales data and even offer you strategies to increase your recovery.

When auctioning excess and returned goods through traditional clearance sites, there are several common fees or costs that retailers or manufacturers may incur, including:

1. Commission fees
Online clearance platforms typically charge a commission fee based on the final sale price of the item. The commission fee may vary depending on the platform and the type of product being sold, but 10% to 25% of the final sale price is typical.

2. Listing fees
Some platforms charge a fee for listing items for auction. The fee can vary depending on the platform, the number of items, and the auction duration.

3. Buyer’s premium
Online clearance platforms may charge a buyer’s premium, an fee charged to the winning bidder on top of the final sale price. Again, this fee is usually a set percentage of the final sale price and is used to cover the platform’s expenses.

4. Shipping and handling costs
Sellers may be responsible for paying shipping and handling costs for auctioned items. Some platforms offer shipping and handling services or discounts for using preferred shipping partners, but may charge additional fees for access to such services.

5. Payment processing fees
Another common fee that platforms may charge is for processing payments, such as credit card or PayPal transactions. Again, these fees can vary depending on the platform and the payment method used.

6. Appraisal fees
Finally, retailers or manufacturers will sometimes have to pay for a solution to appraise their excess inventory before listing it. This cost can vary depending on the type of product being sold and the complexity of the appraisal.

On the B-Stock platform, the only prices that sellers must pay are a flat annual subscription fee and a small percentage of each sale’s revenue which will be determined at the contract stage of purchase. As far as shipping, the seller may cover these costs or opt for one of several other models.

Visit B-Stock’s seller pricing information page to learn more about subscription tiers, or check out our sellers’ shipping FAQ page for more information on various shipping models.