In its second-largest acquisition, Amazon buys the company for $970 million.
The service is scaled to let large retailers test the waters on eBay and in other online marketplaces for returned and surplus goods.
Genco Distribution System has announced a partnership with online auction management services provider Auctionworks.com Inc. to handle the online disposition of returned and surplus merchandise for retailers. The service integrates Genco’s warehouse software with Auctionworks` sales management software to allow Genco to list and sell merchandise on eBay.
“In addition to offering our customers inventory liquidation through traditional salvage channels, the partnership now allows us to help customers maximize their overall margins by providing easy access to the growing eBay marketplace,” says Pete Rector, senior vice president of strategic initiatives for Genco.
The partnership announcement follows a 90-day trial between Genco and Auctionworks. The try-out followed the move by Genco and auction services provider Slingshot Solutions to pull out of an earlier agreement under which Genco had been selling in online secondary marketplaces under Slinghsot’s Delivery Dog and Slingshotman brands. Slingshot’s transaction-based pricing for the auction management services it provided to Genco were set in expectation of volume that did not materialize at the time, while supporting Genco’s auctions at the time also pulled it away from its other goal of developing merchandising optimization software, Slingshot says.