Liquidity Services Essay Example

categories, including apparel, computers, electronics, housewares, industrial equipment, vehicles, and more.

LSI operates five online auction marketplaces that cater to specific needs.

- Liquidation.com allows corporations and federal government agencies in the United States to sell wholesale, surplus, and salvage assets.
- NetworkIntl.com is a leading online marketplace for the sale of idle, surplus, and used capital assets in the oil and gas, petrochemical, and power generation industries. They conduct sales on a consignment basis using their online marketplace (www.Networkintl.com), with a global buyer base and expertise in the product domain.
- GovLiquidation.com enables selected federal government agencies to sell surplus and scrap assets. This marketplace exclusively sells goods on behalf of the Defense Reutilization and Marketing Service of the U.S. Department of Defense.
- GovDeals.com is another online marketplace operated by LSI.

com is a website where surplus and confiscated items from government entities such as city, county, and state agencies, school boards, and public utilities are auctioned online.

LSI offers a convenient method for sellers to remarket surplus and salvage assets, including the preparation of sales information, optional warehousing of goods, and settlement and transaction reporting. Buyers have access to products in over 500 categories, ranging from full truck loads to pallets, packages, and capital assets. Detailed information about each asset, such as product description, manifest, digital images, transaction history of the seller, shipping weight, dimensions, and estimated shipping costs, is available to buyers. LSI has created online auction marketplaces that provide the right services and expertise to efficiently bring wholesale, surplus, and

salvage assets to market. They collaborate with Fortune 500 companies, including retailers, manufacturers, distributors, depot repair companies, and reverse logistics companies, to optimize financial returns from the sale of excess assets by offering liquid marketplaces and value-added services. LSI's unique solution combines centralized online auction marketplaces with a comprehensive suite of integrated services for sales, marketing, merchandising, fulfillment, payment collection, buyer relations, and logistics. Their method of remarketing assets also includes optional warehousing of goods and transparent transaction reporting. The online auction marketplaces have a large base of over 1.

The text discusses the benefits of utilizing LSI's services for wholesale and surplus merchandise. LSI has a large buyer base and conducts many online transactions across various product categories. By using LSI's services, clients can experience exposure to a vast wholesale surplus buyer marketplace, receive integrated value added services to minimize time and expenses, have a rapid sales cycle time, and maintain their brand value. LSI operates on an incentive-aligned pricing model, where they are paid a percentage of the final sales price. Additionally, LSI provides transparent and real-time reporting capabilities. LSI has also proven to generate higher profits for large sellers compared to traditional methods of disposition. Moreover, LSI offers online advertising and search solutions through their wholesale portal, goWholesale, which connects buyers and sellers of wholesale goods and related business services.The portal that is backed by online advertising like Pay-Per-Click and Display Advertising offers a means for manufacturers, drop shippers, distributors, importers, and wholesalers to connect with professional buyers including retailers, online sellers, and other wholesale buyers.

The goWholesale portal is designed to allow advertisers to effectively and efficiently reach a highly targeted wholesale

buyer audience. The LSI wholesale industry portal focuses on three main areas: generating leads for advertisers, providing industry-specific content for professional buyers, and creating an online community for information exchange among participants in the wholesale industry. Each component of the LSI portal offers various services, including: ?

Revenue model

From the Buyer Side, Liquidation.com will collect a buyer premium when buyers win the bidding. A Buyer's Premium is a standard auctioneering fee that helps cover the costs associated with sourcing products, marketing auctions, running the marketplace, and managing services such as payment collection, fulfillment, testing, shipping, and inspection. From the Seller Side, Liquidation.

The pricing structure of com is simple. Sellers are only charged when their items are sold. Liquidation has varying rates for different item categories. For Consumer Electronics (excluding accessories), the fee is either 10% of the selling price or a minimum of $30, whichever amount is higher. For all other categories, the fee is either 15% of the selling price or a minimum of $30, whichever amount is higher.

Furthermore, LSI's marketing concept centers around building trust and enhancing branding through diverse strategies. This involves creating partnerships and collaborating with trusted partners throughout the service cycle.

For payment method or shipping partner to ensure the security and safe transaction between sellers and buyers

• In the News
• Licensee of the Privacy Program
• safer way to pay and get paid online
• SSL, identity and authentication, domain name
• Quality process and quality information Better Business Bureau ?

Web transaction log analysis, customer registration forms ?Search engine marketing LSI’s wholesale portal, goWholesale, brings together buyers and sellers of wholesale goods and related business services ?Guerilla marketing public

relations campaign and limited advertising ?E-mail marketing Email marketing tactics are as persuasive as the web presence to get the best synergy effect of promotions and conversions ?Use Affiliate Program to get more buyers LSI recognizes that business success involves building long term relationships with the partners. Therefore, they have designed an affiliate program that rewards the partners for referring their users to register and use Liquidity Services, Inc. 's online marketplace - Liquidation. com, to buy or sell surplus.

The affiliate partners have the opportunity to earn a commission from successful transactions made by each user they refer to the Liquidation.com marketplace, as well as getting paid for each unique bid generated. There is no upfront investment required, and no need to buy any products or inventory to participate. The marketing and sales teams at Liquidation.com have analyzed customer behavior over the past eight years to understand their needs. They developed a tracking program that focused on conversion metrics such as the average number of auctions viewed per user, average number of bids placed, average number of transactions, percentage of opt-in email, and percentage of registered visitors. Based on their customer behavior analysis, they simplified the existing five-page registration form to just half a page after discovering that first-time visitors disliked filling it out.

increases in registrations and opt-ins for email messages were observed. The analysis revealed that initial visitors seldom made purchases, and it took an average of 60 days from their first visit to their first bid. Consequently, it became crucial to maintain communication with first-time visitors and registrants through email or other channels. Moreover, a higher demand and greater bidding activity were

observed from smaller buyers who had the capacity to handle 100 briefcases compared to larger lots of 1,000 briefcases. Additionally, large buyers increasingly expressed interest in truckload lots to stock discount stores, flea market kiosks, and other small businesses. This resulted in liquidation of goods.

Liquidation.com offers a wide range of products to meet customer demand and maximize returns for sellers. To attract new customers, the company utilizes various strategies given their limited marketing budget. They rely on search engine marketing provided by Google and Yahoo to drive initial traffic to their website.

They used paid advertising on Google and Yahoo to direct visitors to the product pages on Liquidation.com. They employed guerilla marketing and public relations campaigns to increase website traffic with minimal expenses. They aimed to gain exposure in prominent media outlets whenever possible. Additionally, they placed a few ads in trade magazines that highlighted their professionalism, streamlined operations, and trustworthiness. Since its establishment in late 1999 and subsequent IPO in February 2006, Liquidity Services, Inc. has achieved success.

Liquidity Service, Inc. is a well-known online auction marketplace that focuses on trading wholesale, surplus, and salvage assets. The company has an impressive track record with over 1.8 million online transactions and gross merchandise value surpassing $1 billion. Looking ahead, Liquidity Service, Inc. remains optimistic about its future prospects. As of November 22, 2010, the stock price for Liquidity Service, Inc. is USD 15.12.

The chart displayed depicts the historical data of LQDT stock price and its trend over a span of 5 years, collecting data from its IPO date until the week of November 14, 2010. The source of the data can be found at: http://uk.inance.

yahoo. com/echarts? s=LQDT#symbol=lqdt;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;. Due to successful marketing and branding campaigns, Liquidation has achieved significant success.

com has transformed the previously murky and inefficient local liquidation markets into a respected and successful online niche in the expanding Web liquidation industry. In 2007, Liquidity Services earned three prestigious international Web awards for their excellent website development. These awards highlighted various features of the website, including a powerful search engine, personalized email alerts for buyers, comprehensive product information, shipping quotes to ensure transparency in pricing, and real-time transaction tracking.

The key factors for the success of Liquidation.com are centered around their creation of a new business model known as "Reverse supply chain business" in the field of internet auctions. Liquidation.com is revolutionizing the disposal of surplus assets by increasing returns and saving costs, reducing transaction risks, and eliminating management burden. This differentiation sets Liquidation.com apart in the market.

com is a unique product source that differs from traditional wholesaler and drop shipper directories. It allows buyers to participate in low-priced auctions for bulk products that are being liquidated. They offer buyers easy access to products from numerous commercial sellers, including over 30 Fortune 500 retailers and manufacturers. Liquidation. com holds a federal contract as the exclusive liquidator for the U.

Liquidation.com is a division of the U.S. Department of Defense and its purpose is to liquidate materials from various federal agencies. The website offers a wide range of products across over 600 categories for buyers to purchase. These products are available in different sizes such as case packs, pallets, and truckloads. Most online auctions on Liquidation.com have a low reserve price and provide detailed information and photographs of the merchandise, allowing

customers to make informed decisions.

The site includes a robust search engine that uses five drilldown menus (Product Category, Location, Lot Size, Condition, and Shipping Option) to assist users in finding the products they are looking for. For instance, the Condition category offers options such as New, Used, Refurbished, Returned, Shelf-Pulled, or Salvage Merchandise. Additionally, buyers have the ability to create personalized searches and receive automatic email alerts with the results. Liquidation.

The marketing team at Company sends tailored emails to buyers to notify them when new auction items that match their interests are available. The emails also include photos, prices, and availability of 8 to 10 featured items. Crucially, the emails specify the end times for bidding on each product. Furthermore, the bottom section of the emails showcases currently stocked products categorized into 8 major categories. Convenient hotlinks are provided for easy access to more information and purchase options.

Trustworthiness is a key feature when using liquidation.com. Buyers have the opportunity to purchase directly from liquidation.com, ensuring that the product originates directly from them in the majority of cases, rather than the seller. Typically, the transaction takes place between buyers and liquidation.com.

By providing services such as payment collection, settlement, and reporting, LSI ensures that transaction purchases are not scams, which generates a sense of comfort and assurance. These services create a more secure transaction environment and give buyers heightened confidence in their purchases. It is no surprise that Liquidation.com has gained a dedicated fan base of over 685,000 registered buyers.

The text emphasizes that Liquidation.com is a subsidiary of Liquidity Services, Inc., which is a publicly traded company on the NASDAQ stock exchange (LQDT). Furthermore, Liquidation.com provides a

dispute department for handling issues related to undelivered or damaged products. In addition, it highlights the significance of understanding the different categories of merchandise in the secondary market and the reasons behind their transition from the end-user.

Is the reason the consumer didn't like the product, that it was defective, or maybe the store couldn't sell everything they bought? Generally, products coming from retailers sometimes have minor damage like scratches or damage to the packaging. Typically, the product is in good working condition with only minor cosmetic damage. However, the range of goods can be from brand new in the box to salvage. Occasionally, the end-user may have brand new products, still in the box, which are being sold surplus because they are not current technology or current season. Every three to six months, technology advances and this leads to valuable merchandise being taken out of stores and entering the secondary market. Other condition categories can be found in liquidation channels and the reverse supply chain. This includes opened box return items, shelf pulls where the item has been handled, damaged or defective items suitable for refurbishing, and even salvage merchandise that can be used for parts. Buyers with expertise can utilize these parts for refurbished products, but caution should be exercised when purchasing these goods unless one has repair capabilities. Sellers of returns or non-working goods often have low feedback on eBay, even when they are completely honest about the merchandise.

When operating in the eBay marketplace, it is crucial to take note of the condition code of the inventory being bought and resold. Familiarizing yourself with the definitions will give you a clear understanding of

what to anticipate. "New" items are in their original packaging and possess all the features and qualities as advertised by the manufacturer. These items are typically overstock items that were never sold in a retail environment or used previously. They often include the manufacturer’s warranty cards.

Refurbished assets, which have been inspected, tested, and restored to full working condition, may come in original packaging and include documentation and additional parts and accessories – although this is not always the case. These assets may display cosmetic defects and blemishes such as dents, scratches, and signs of age. On the other hand, shelf pulls were once available for sale in retail stores but were never purchased. They often have multiple price tags and stickers indicating markdowns and have had some customer contact.

Furthermore, Shelf Pulls, which are typically sent through a reverse supply chain from a retailer back to a centralized warehouse, may display signs of additional handling. Consequently, these items can display a variety of individual product and package conditions that may significantly vary from their original manufacturing. On the other hand, Used assets have been previously sold and put to use, and hence, they have observable cosmetic defects and blemishes such as dents, scratches, and signs of aging.

When it comes to used assets, they are typically obtained from a working environment without their original packaging or any accompanying documentation, parts, or accessories. These assets undergo minimal testing to ensure basic functionality, such as powering on and off. As a result, they may not be in optimal working condition and may need further maintenance and repairs. In the case of returned merchandise, a customer purchases an item and

then either physically returns it to a store or sends it to a designated location. The reasons for returning a product may not necessarily reflect its usefulness.

When customers return products, there can be various reasons for it. Some returns occur due to reasons such as wrong size, color, or model of the product. In such cases, the product may be in good working condition. However, most returns involve issues related to the product's operation or appearance. Depending on the return policy of a company, these items may also show signs of use.

Furthermore, as these items are typically returned through a reverse supply chain (such as from a customer to a store or centralized warehouse), they may exhibit signs of additional handling. They commonly do not arrive in their original packaging and frequently lack any advertised documentation or extra components and/or accessories. Consequently, returns can vary significantly in terms of individual product and package condition, often differing from the original manufacturing state.

Salvage - Salvage assets are identified as defective due to functionality, appearance, or both. Typically, salvage assets can only be used for their parts. But why is Liquidation.com able to compete against eBay?

Liquidation.com

offers eBay-style auctions that cater to production overruns, customer returns, and merchandise from bankrupt companies. This uniqueness allows Liquidation.com to establish a market for these types of goods.

Liquidation.com competes with eBay through precision online marketing and branding. To establish trust in its sites and services, Liquidation.com employed strategic tactics. One of these tactics involved designing the home page with customer service links on the top, bottom, and side. This allowed customers to easily contact customer service and feel more confident in the site.

Furthermore, the inclusion of logos such as VeriSign, PayPal, and TrustE on many pages reinforced the sense of protection for customers.

Customers can make transactions through the Liquidation. com website without any hesitation.

Additionally, Liquidation. com features a news section where press releases and mentions are displayed, helping to establish trust and reliability among consumers. This feature assures customers that they are dealing with a reputable company and minimizes the risk of exploitation.

Physical transactions through Liquidation. com have had minimal issues.

In a particular situation, a customer received a completely different item than the one they had purchased. The customer promptly reached out to Liquidation.com, who then instructed the seller to refund the customer's money. Furthermore, the customer was required to return the incorrect items. This ability to obtain a refund if the product is incorrect is a crucial aspect for Liquidation.com to establish trust among its customers.

Why do retailers prefer a website dedicated to finding wholesalers over using the existing Liquidation.com site? Some retailers specifically need long-term wholesaler suppliers. However, Liquidation.com only auctions off lots that constantly fluctuate on a daily basis.

Liquidation.com is a site that primarily caters to individuals seeking discounted purchases in large quantities. This poses a challenge for retailers such as TJ Maxx who strive to maintain a consistent inventory in their stores. Retailers benefit from having a dedicated platform that connects them with wholesalers, ensuring a steady supply of products and competitive prices. What are the components that constitute Liquidation.com's primary offering and how does it contribute to an enhanced product? The fundamental components include efficient and rapid product turnaround facilitated by

targeted online advertising, a solid reputation, and a network of individual sellers.

eBay differentiates itself from other companies, like eBay, by offering targeted location advertising and Business-to-Business sales. Its reputation for selling products at higher prices attracts more sellers, while its reputation for offering unique products at low prices attracts buyers. eBay also provides excellent customer service and support to help sellers sell their products, and ensures that buyers receive what they paid for, unlike other sites. This superior level of service helps eBay maintain its competitive edge over competitors like eBay.

Discover a product available for purchase on both the Liquidation.com website and eBay.