What are online liquidation auctions ?

Liquidation auctions are a great way to buy job lots at a good price. Liquidation auctions allows buyers to access unsold goods from different brands and retailers through an online marketplace. It’s an effective way to buy job lot and unsold items from brands and retailers at the best price. We will explore here the main principles of liquidation auctions :

1. Liquidation auctions are done using joblot pallets​

Liquidation auctions allow buyers to buy unsold items. Unsold items are available to purchase in the form of pallet boards. A pallet can welcome different products, depending on the categorie of products they fall into. A pallet can welcome from a few products (for clearance sales of ready to wear fashion) to several hundred products (for clearance sales of large electrical appliances).

2. Liquidations auctions can take place online​

In this day and age, it is possible to register on an online auction site to buy job lots from well known brands and retailers. Online marketplaces can save you a lot time. This is an easy and safe way to access job lots auctions at a good price. Think of the time it can save you!

This video explains how you can registrer on Stocklear, the B2B marketplace dedicated to overstocks, and become a buyer.

3. Fleeting sales and limited time frame

In any liquidation sale auction, there’s always a limited time frame:

• A day and time the liquidation auction starts
• A specific deadline

The point is to enable buyers to analyze the job lot from every angle. Usually when a bid is made in the last 5 minutes, the auction sale is extanded for 5 more minutes to allow any other buyer to make a higher bid.

4. There is a specific listing of products for liquidation auctions​

In order to enable buyers to analyze job lots, a listing is necessary to determine what the job lots are composed of. This information includes:

• The size of the lot
• The number of items
• The quality of the lot

Take into account that it’s possible to come accross “blind boxes” or “mix pallets”. In this case the information about the job lot won’t be as precise but the price range will be lower. It’s crucial to measure the risks when making a bid for this kind of lot at a liquidation auction.

5. Liquidation auctions have a starting price and a reserve price

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Most of the time, there is :

• A starting price: the price at which the lot is put up for sale.
• A reserve price: this is the price below which the transaction can’t happen. Buyers do not know this price.

The price range within which transactions are completed depends on various factors, but usually, it is expected to see transactions being carried out at 5 to 20% of retail price.

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6. The bid increment

When it comes to liquidation auctions, there is always a “bid increment”. That’s basically the minimum amount between the current bid and the next bid. It will help you determine the amount for a higher bid or the maximum amount you’re willing to bid.

At Stocklear, the bid increament is 50€ VAT excluded for every auction.

To conclude

Liquidation auctions can help you buy job lots of unsold items from brands and retailers at a good price range.

To learn more about liquidation auctions, read our article explaining how you can buy auction lots.

To access our liquidation auctions, click here.