Liquidation.comLiquidation.comB2B Marketing Success Story

CHAPTER 6: E-COMMERCE MARKETING CONCEPTS

Presented by Team A

History

• Liquidity Services “reverse supply chain business”

• $69.5 billion market in 2009 ($38 billion in 2004)

• More then 500,000 bulk sales transactions in 2009

• Went public in February 2006 (LQDT $12.48 Friday closing)

• 550 worldwide employees

• Used by over 900,000 professional buyer

• 80% of items listed are actually sold

• Offered in 116 countries

Overview

• Liquidition.comMother ship: Resources, grouping thousands of useful company websites

• Govliquidation.com Exclusive contractor of the Defense Reutilization and Marketing Service for the sale of surplus and scrap assets of the US Department of Defense.

• Liquibiz.comThe European source of Business Surplus

• GoWholeSale.com Search engine to help wholesale buyers to connect with wholesale

suppliers Features content and supplier listings on a network of sites and channels, including Wholesale411.com, Wholesale.com and WholesaleIndex.com.

Compete against eBay

• Precision online marketing and branding

• Bulk shipment

• Targeted marking

• Focus on B2B

• Businesses going out of business

• Businesses looking to sell their products in bulk

Building Trust

• 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

Wholesalers rather then Liquidation.com?

• Liquidation.com Bulk sellers finding retail buyers

• GoWholeSale.com Retailers seeking out suppliers

• Wholesaler can bid on keywords for sponsored listing

• Retailers will see sponsored listing first

• Study supply for same type of product

• Wholesale product is better

• Liquidation product could be damaged

• Over 3 million wholesale business buyers

• Targeted search and online advertising

Key elements in core product to create an augmented product

• Sellers are offered a Global Marketplace

• Complete support for presentation (graphics and text)

• Support for transactions (auction and bidding engine)

• Real-time tracking of transactions

• Offers at least 2x as much value than in offline world

• Auctions close every 2-3 days and no sniping allowed

• Opt-in Email marketing

Broad range of services to buyers and sellers

What accounts for price differential

• Liquidation.com is quite different than standard wholesaler

• One-time buy for low-priced auctions on bulk products

• An excellent place to get started with wholesale merchandise

• Easily browse the products and prices

• If the market is flooded with $2 auctions for your product

Price Comparison

• Consumer electronics to clothing to cars

• Great for people with their own eBay store

• The more you buy the more you save

• Xbox 360 retails for $299 dollars for one

• But if you buy 15, you could get each one for $75

• Great place to save some dollars on internet shopping