Profile: Liquidity Services Inc (LQDT.O)
18 Dec 2013
Liquidity Services, Inc., incorporated in November 1999, is an auction marketplace for surplus and salvage assets. The Company enables buyers and sellers to transact in an automated online auction environment offering over 500 product categories. The Company’s marketplaces provide professional buyers access to a global, organized supply of surplus and salvage assets presented with digital images and other relevant product information. It organizes its products into categories across industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware and specialty equipment. It’s online auction marketplaces are www.liquidation.com, www.govliquidation.com, www.govdeals.com and www.liquibiz.com. It also operates a wholesale industry portal, www.goWholesale.com that connects advertisers with buyers seeking products for resale and related business services. On October 1, 2011, the Company acquired of the consumer goods remarketing business of Jacobs Trading Company. In July 2012, the Company acquired GoIndustry-DoveBid plc. In November 2012, the Company acquired National Electronics Service Association.
The Company’s solution consists of its online auction marketplaces, value-added services and its wholesale search and advertising portal. The Company’s marketplaces and services are designed to provide sellers with a solution to bring assets to market and improve the financial value realized from the sale of these surplus assets. It provides its sellers access to a range of liquid marketplaces with over 1.4 million professional buyers and a range of services and logistics capabilities to manage its clients' reverse supply chain. Through its relationship with sellers, it provides buyers access to a substantial and continuous flow of surplus and salvage assets. The Company’s solution combines online marketplaces with a range of integrated sales, marketing, merchandising, fulfillment, payment collection, dispute mediation and logistics services. The Company provide buyers a method for sourcing surplus and consumer goods.
The Company’s www.liquidation.com marketplace enables corporations and selected government agencies located in the United States to sell surplus and salvage assets. This business to business marketplace and its related services are designed to meet the needs of clients by selling their surplus assets to domestic and international buyers. Its www.govliquidation.com marketplace enables selected federal government agencies to sell surplus and scrap assets. In addition to goods sold on behalf of other federal agencies, the surplus and scrap assets it sells as the exclusive contractor of the Defense Logistics Agency (DLA) Disposition Services of the United States Department of Defense are sold in this marketplace.
The Company’s www.govdeals.com marketplace enables local and state government entities, including city, county and state agencies, as well as school boards and public utilities located in the United States to sell surplus and salvage assets. This marketplace and the Company's related services are designed to meet the needs of public sector clients selling to domestic and international buyers. The Company’s www.liquibiz.com marketplace enables European-based corporations and government agencies, including the United Kingdom Ministry of Defense, to sell goods to European and other international buyers.
Value-Added Services for Buyers and Sellers
The Company has an integrated value-added service to simplify the supply chain processes for its buyers and sellers. These services include seller service and buyer service. In the seller service, the Company offers value-added services to sellers in three areas: merchandising and channel optimization, logistics, and settlement and customer support. Merchandising and channel Optimization efforts consists all of the services to prepare merchandise for an auction and include channel optimization, marketing and promotion, asset lotting and merchandising and product information enhancement.
The Company provide logistics services designed to support the receipt, handling, transportation and tracking of merchandise offered through its marketplaces, including distribution centers; inventory management; cataloguing merchandise; testing, data wiping, de-labeling and refurbishment; return to vendor or product disposition to non-sales channels, and outbound fulfilment. Settlement and customer support services are designed for successful and reliable completion of transactions and include buyer qualification, collection and settlement, transaction tracking and reporting, and customer support and dispute resolution.
The Company’s buyer services include intelligent alerts and recommendations; search and navigation tools; dynamic pricing tools, product information and shipping quotes; broad and flexible range of shipping/pick-up options, and secure settlement and customer support. In Intelligent alerts and recommendations, the Company notifies buyers of upcoming auctions based on their registered preferences and prior transaction history.
In the search and navigation tools, buyers can search the Company’s marketplaces for products based on a range of criteria and personalized settings, including product category, keyword, lot size, product condition, product geographic location and auction ending date. In dynamic pricing tools, product information and shipping quotes, the Company offers multiple dynamic pricing tools, including outbid notification, automated bid agent and automatic auction extension. In addition, the Company provides buyers the information they need to make informed decisions, including product, seller performance, and online shipping quotes.
In the broad and flexible range of shipping/pick-up options, the Company provides packaging and shipping services for each transaction, including buyer pick-up at the Company's premises for the transactions or support of buyer arranged transportation. In the secure settlement and customer support, the Company verifies transaction completion, which in turn improves buyer confidence. In addition, it provides customer support throughout the transaction process.
Wholesale Industry Portal
goWholesale.com provides buyers of wholesale, surplus or salvage goods with tools to search for goods on the Internet and provides an avenue for manufacturers, drop shippers, distributors, importers and wholesalers to reach professional buyers. goWholesale.com also provides a single online destination for buyers to find specific products for resale and related business services. Its goWholesale.com portal is designed to allow advertisers to reach targeted wholesale buyer audiences. Its wholesale industry portal focuses on three areas: generating leads for advertisers; providing access to a range of industry specific content for professional buyers, and creating an online community for the exchange of information by participants in the wholesale industry. Each component of its portal delivers a variety of services, including lead generation, content and community.
Liquidity Services Inc
6th Floor, 1920 L St. NW
WASHINGTON DC 20036