Business liquidation is a growing segment at AuctionWatch

With increasing competition in the auction services space as more retailers look to web auction sites to move surplus, returned and even distressed merchandise, online auction service and software providers are looking for a niche. AuctionWatch six months ago put its pursuit of large corporate enterprise clients on hold to focus on small businesses. That’s retailers and others ranging from individual high-volume power-sellers to small companies with operations as large as 25 employees, says CEO Rodrigo Sales. One of the newest and fastest-growing business segments for AuctionWatch has proved to be liquidation, but with a twist: in that segment, AuctionWatch is dealing increasingly not with merchandise, but with financial institutions representing distressed companies. And they’re seeking to liquidate not end-of-model DVDs or TVs, but office and technology equipment.

“We started targeting financial institutions and others that would have a constant supply,” says Sales. “And we’ve experienced a considerable amount of success with those businesses. Liquidation has gone from zero revenue six months ago to about 10% of revenue now, and we’re still seeing growth,” he says. Growing success in liquidating the front-office and back-end equipment of distressed companies could lead back to larger clients: Auction Watch hopes to develop its liquidation business next among traditional retailers who want to move surplus merchandise at auction online.