Liquidation Stock

Image Courtesy: http://www.iloveagoodmystery.com/photos/bouchercon_2005/fri_auction2.jpg

How many hours will be spent on a particular liquidation process? What is the value of that time? What are the fees that will have to be paid for the many options available to you?

These factors have to be considered in your strategic plan. Let’s say for example that you have 100 items to sell, and that you could make $20 more per item if you sell them one at a time than you could if you offered them as a wholesale lot. Sounds great right? What if it takes you 2 hours to list each item and package and ship it after the sale, and that the associated fees of the listing and collection are $10 per item. You really then are only making $5 per hour for your efforts! Determining the true cost of liquidation is therefore, very, very important.
Without market research you may not be able to know where these dollar amounts really lie for your particular product. You can see how you might be wasting a lot of time to get a small amount of money if you make some poor decisions due to the lack of information.

Choose the Best Type of Listing

The next step is to decide what type of listing to use. One, or a combination of several of the following types of listings, may be appropriate:

1. Individual item sale – Selling off inventory one item at a time with an emphasis on low or no reserve to ensure listing success.
2. Small lot sale – Combine product into groups of 3, 5, 10, 20, or whatever number is appropriate for the specific product and is acceptable to your customer base.
3. Large wholesale lot sale – Selling off an entire inventory in one or more very large lots. Let’s look at a real-life example from eBay. Let’s say that you have a few hundred disposable Kodak Cameras that you want to liquidate by selling them on eBay. How do you do it? You
have any number of choices when it comes to lot size. You may want to sell them one by one, in groups of 5 or 10, or maybe you just list them in one enormous lot. Without market data you will make a guess and roll the dice. Let’s see what some actual listing data suggests that you do.

Editorial Courtesy: http://www.hammertap.com/my_files/pdf/ebayradio/Liquidation%20Report.pdf
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