The Wholesale Liquidation Auction Process Explained
Wholesale Auctions of Surplus Inventory
DirectLiquidation.com is a wholesale liquidation marketplace that offers merchandise for sale via online auctions. If this is your first time participating in a live auction we would like to ease you through the auction process to assist you in making a well informed decision when attempting to source inventory from our site.
How It Works
- You must first register a free user account in order to be able to bid on our website. During the sign up process you will be asked for basic contact information and your reseller certificate (if applicable and you run a business). We also require all users to provide a valid credit card in order to verify you are an authentic bidder. This helps ensure only “real” customers participate in auctions. Once you have completed the registration process you are then able to bid on auctions on the website.
- Now comes the fun part, locating inventory you have an interest in bidding on. This can be accomplished by using our “Shop by Department” menu to perform searches “by category” or you can use our keyword based search and filters to search for specific products, manufacturers or physical condition of merchandise. After trying your initial search we encourage you to use the built in filters to narrow down your search to the most relevant results.
- Now that you have narrowed things down a bit, it’s time to scan the results for opportunities. Are you a deep SKU vendor or do mixed lots better suit your needs. Does your business model support smaller quantities or pallets and truckloads? Do you need untested returns, brand new or refurbished merchandise? After making these decisions you can start exploring the auction listing pages to gather more information.
- Every listing provides full details about the load including; load manifest (which is downloadable), functionality, physical condition, packaging, load weight and load shipment size. In addition, a shipping calculator is included to help you determine shipping costs. You have the choice to use our calculator to arrange your freight or if you have more competitive rates you are welcomed to arrange your own shipping. Please be sure to review the description in the auction listing as well as download the manifest to decide what your maximum bid will be for the load you have an interest in purchasing.
- After doing your market research you should have a maximum bid price you feel comfortable bidding on the auction listing. Our system works using a proxy bidding algorithm so you should enter the maximum bid price you are willing to spend. This does NOT mean you will have to pay that much to win the lot. After entering your maximum bid in the bid box one of the following will happen:
- If you are the highest bidder but your maximum bid does not meet the reserve price for that listing then your maximum bid will become your current bid and you will see a message “Reserve price has not been met”. This means that even if you are the highest bidder when the auction closes you will not win the merchandise because the reserve price has not been met. If you want to win that auction you will need to decide if you have room in your budget to increase your bid.
- If you are the highest bidder and your maximum bid is higher than the reserve price for that auction your current bid will be set to the reserve price of the auction. If no other bidders take action on the listing when the auction closes you will win for the reserve price NOT your maximum proxy bid. Yes you read this right you will win for the reserve NOT your maximum bid. This allows you as a buyer to put your MAXIMUM number in initially and walk away. You do not need to bid again if you have truly put your best offer in. Any time another bidder places a bid our system will automatically increase your bid for you. You will be notified that you have been outbid should another bidder exceed your maximum proxy amount and you can make a decision at that point to raise your offer or not.
- If the auction does not have a reserve set after you enter your maximum bid your current bid will become the minimum start price for that listing. If no other bidders take action when the auction closes you will win the bid at the minimum start price for the auction.
- If the auction timer ends and you are the highest bidder and the reserve price has been met (if a reserve price was set) then you will receive a notification that you are the highest bidder and have won the auction. At the same time you will be provided with instructions on how to complete payment for your order. We accept Visa, Mastercard, American Express and Bank Wire.
- You will receive a separate notification regarding making arrangements to ship your order. If you ordered shipping services via DirectLiquidation.com you will be provided with tracking and status updates. If you selected to arrange your own shipping you will receive instructions on how to upload/create a Bill of Lading for your shipment.
- After payment is received your order will be picked, packed and shipped.
- After you enter your maximum bid if the reserve price has not been met you will see a message on the screen that says “Reserve price is not met”. If no further bidding occurs on this listing then the auction will close without a winner.
- In some cases, you may receive a notification that an auction timer has been extended. This generally occurs when someone has bid close to the reserve price but the reserve has not been met. In those cases, our system will automatically extend the auction.
- Our system also uses a “popcorn bidding” feature that will extend an auction in the closing moments if a surge of bidding activity is detected for that listing.
- Some auctions have a “buy now” option which allows you to secure the inventory without bidding. This buy now option disappears after bidding activity eclipses the reserve price for that auction.
- Not all auctions have a reserve price set.
If you have questions about the bidding process or any of the terminology mentioned in this article please contact our support team toll free at: 1-800-679-9451 (local, internatinal: +1-305-514-0587) or email [email protected] with your question.