One of the most common methods to reduce overstock merchandise is by online liquidation auctions. Although online liquidation auctions come with many benefits, there are also some risks involved. If you are interested in online liquidation, you might need to be aware of the risks you might encounter.
- Delayed Turn Over
Online liquidation auction is believed to be a fast-moving goods methods of sale. However, there are no guarantees to quick sales, and this may hold your capital longer than anticipated. In case you have other opportunities to purchase other available merchandise, it is possible they could slip away. Liquidation auctions can also be time-consuming.
- Little Brand Control
Controlling brand and sales channels in online liquidation auction is not possible. Competition is high, and bidders too can potentially derail your merchandise sales and harm your brand’s legitimacy. Little or no control of the brand image and sales channels in online liquidation auction is, therefore, a risk to your business growth.
- High Costs
Most people think liquidation auction goods are cheap, assuming the purpose is just a quick rid of the products quickly. However, online liquidation auction involves intermediaries, and this has a direct effect on the price. Costs of the auction house, host websites, and auctioneer expenses will always impact negatively on prices of merchandise. Auction period is also limited; therefore, most liquidators will hike the costs due to demand and limited auction time.
With all the above little-known risks about online liquidation auction, you need to make a decision on which method to use either for sale or purchase of products. You can try using a liquidation company if you are in doubt of an online liquidation auction. Finally working with a trusted liquidation auction company such as Prime Auctions will solve some if not all problems you may encounter.