eBay has acquired Terapeak.

Read the Announcement

Products can be purchased from auction houses through live and virtual bidding. Auctions may or may not allow potential buyers to preview the items ahead of time. Bidding occurs within a short window of time. Competition from other bidders may make it challenging to acquire items at a desirable sourcing cost.

Outlets

Auction Houses
Government Surplus
Close-outs
Storage Units
Liquidations

Advantages

  • Items may have already been identified by auctioneer
  • History of items may be available from the auctioneer
  • Valuable items can be sourced at low cost.
  • Some items can be sourced in single or small quantities.
  • Items sold as a lot may represent a better margin than individual items

Disadvantages

  • Stock cannot be replenished
  • Identification of items may be challenging
  • Item condition may vary from new to damaged goods with the same lot
  • Items may not be available to inspect before auction.
  • Items may require immediate payment after auction
  • Quality of opportunity varies by auction
  • Effective selection of products is dependent on clear understanding of resale value, online demand.
  • Competition from other bidders can drive up sourcing costs
  • Frequency of auctions may be low, inconsistent throughout the year
  • Challenging to scale upwards as business grows.
  • Pickup of items may be required within a short time frame
  • Auction winner may be responsible for disposal of unwanted items from a storage unit
Was this article helpful?
0 out of 0 found this helpful

About eBay eBay Careers Privacy PolicyeBay.com