Amazon’s Woot launches a B2B auction site for excess merchandise
July 13, 2015 03:32 PM
Woot, a daily-deal retail site and Amazon.com Inc. subsidiary, recently launched a business-to-business e-marketplace—Woot Liquidation Auctions—where merchants and other businesses can buy excess merchandise.
The online B2B auction site, developed by B-Stock Solutions and located online at Woot.BStockSolutions.com, allows business buyers to bid on new, excess merchandise. Businesses can buy anything on the site from a truckload of salvaged TVs to a pallet of toys, and all items are sold for a fraction of their retail price, says Howard Rosenberg, CEO of B-Stock Solutions. In the future, he adds, the site may include products that were returned by customers or that Woot was unable to deliver. Woot did not respond to a request for comment.
The retailer’s inventory is held at approximately 43 sites across the United States, and inventory lots range in size from single pallets to full truckloads. There is no fee to buyers for creating an account on the B2B auction site and, in the 30-days since the site’s June 11 launch, about 1,000 buyers have signed up to buy excess goods. (A “lot” is a wholesale term for products offered for sale as a single group of items.)
“Buyers have to apply on the site and be approved according to the seller’s requirements,” Rosenberg says. “Woot only requires all sellers to have a resale certificate to provide evidence that they’re a real business and shouldn’t be charged sales tax on the transaction.”
Once a buyer is approved for the site, she can go to any auction page and start bidding on Woot’s products.
B-Stock Solutions says it has built liquidation marketplaces for hundreds of retailers for selling their own excess merchandise, including Wal-Mart Stores Inc., The Home Depot Inc., Wayfair Inc., and Gregg Appliances Inc., which operates online and in stores under the brand hhgregg. B-Stock Solutions also helps its client retailers market to buyers in its database. “We bring a very robust buyer base,” Rosenberg says. “Our job is to market the site to our large and rapidly growing base of business buyers of all types. There’s mom-and-pop, flea market guys all the way up to multi-store retail chains.”
When the Woot auction site launched, B-Stock Solutions sent an email buyers on its list that the Woot Liquidation Auction site was open for business. Rosenberg says he wouldn’t be surprised if there were 5,000 registered buyers on Woot.BStockSolutions.com by the end of the year.
The company charges a commission based on a percentage of what’s sold on the marketplace, and the percentage charged varies by volume. “We’re compensated on what sells,” Rosenberg says. “The more we can get them for their inventory, the more we can make.”
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