In a major announcement for the industry, B-Stock has announced that they have closed a $7mm growth equity round. From their blog they say:
B-Stock Solutions, the leading provider of inventory Liquidation Sales Management solutions to retailers and manufacturers, announced today that it has closed a $7 million Series B growth funding round led by Susquehanna Growth Equity (SGE). Existing investor, True Ventures, also participated in the round.
“Retail returns are a $260 billion problem for retailers so it is more important than ever for them to maximize the value of this distressed inventory,” said Howard Rosenberg, CEO of B-Stock Solutions. “B-Stock has transformed traditional liquidation methodologies into a data-driven, technology-based process that is both operationally more efficient and yields higher prices.We are thrilled that SGE shares our vision for the business and will be joining our team.”
Since B-Stock Solution’s Series A funding, the Company has grown its client base of Fortune 1000 and SMB retailers and manufacturers into the hundreds and continues to operate profitably. B-Stock Solutions plans to use this round of funding to support and accelerate its award-winning B2B liquidation business, which is growing over 200% annually. This will include expanding its team of marketplace experts to serve its growing list of enterprise clients, advancing its technology roadmap, and broadening the suite of services offered across all industries.
“In 2009, True Ventures led B-Stock’s Series A funding based on the notion that this very inefficient part of the reverse supply chain could be significantly improved,” said John Burke, a Partner at True Ventures. “This team has proven that their technology, services, and extensive data reporting create substantial value for clients who have never before had such visibility into secondary market pricing and demand characteristics.”
Retailers and manufacturers continue to suffer financially from the impact of customer returns and other excess inventory. The trend towards omni-channel retailing is exacerbating this problem. B-Stock Solutions helps minimize this negative financial impact by providing:
- A secure and easy-to-use web-based auction platform
- Expert liquidation and auction strategy guidance
- Real time reporting and analytics on secondary market pricing and demand characteristics
- Exposure across the B-Stock Sourcing Network, the largest and fastest growing network of branded liquidation marketplaces and qualified business buyers
”We are pleased to be working with B-Stock Solutions as they transform the traditional liquidation industry. The team’s auction strategy, marketplace management, and demand generation expertise have created an incredible solution that no other company has been able to match,” said Amir Goldman, Managing Director at Susquehanna Growth Equity. “B-Stock’s rapid growth to become the leader in their market has been remarkable and it is testament to their team’s performance and dedication to their clients.”
B-Stock Solutions is also excited to announce that Amir Goldman of Susquehanna Growth Equity will join Howard Rosenberg and John Burke on its Board of Directors.
The Canadian appliance manufacturer, Danby, has launched a B-Stock powered liquidation marketplace. Danby is a nearly 70 year old, family owned business whose products you have likely seen even though you may not realize it. Their wine fridges and small 2.5 cubic foot dorm-style fridges can often be found for sale in Costco. The Company has a big line of products from these wine fridges to kegerators and air conditioners.
Now, they are liquidating returns and other excess inventory via a liquidation marketplace.
Check out the new site that B-Stock Solutions is running for Proctor & Gamble's Duracell Powermat division.
Available are large quantities of brand new, overstock Powermat and Powermat accessories. There are small and large lots and all start at very low prices. Probably some good buying opportunities here.
Great opportunity to acquire loads from Home Depot's Liquidation marketplace. They are testing free shipping. It may only be for a limited time and their are some constraints with respect to shipping distance, but it is definitely worth checking out.
HD Supply has launched a liquidation marketplace for MRO inventory. The site (located at http://hdsupply.bstocksolutions.com) offers bulk lots of typical MRO type products. They are all brand new, overstock products.
It is a great looking site that is worth checking out.
Due to the high level of interest in this topic, I created a page on this located here.
B-Stock Solutions has launched yet another marketplace. This one is for Waste Management. Yep, that's right, the garbage company. But guess what...not all their inventory is garbage. In fact, they run trade-in programs for consumers to sell back their old devices in addition to doing corporate technology refreshes. This means when some big company wants to upgrade it's entire base of thousands of Dell laptops, Waste Management will take all of the old machines and figure out the best way to dispose of them.
Check out the site as there is a ton of great stuff.
If you are in the business of buying liquidation inventory, or have been considering getting into the business, get ready for the post-Christmas gold rush.
As the holidays pass and the buying spree of the American people comes to a close, everyone in the liquidation business begins to salivate over the coming tidal wave of returns. Online purchasing is estimated at $42.75 billion for the holidays, while total consumer spending was projected to hit $738 billion.
A rough, 'back-of-the-envelope' calculation suggests returns of somewhere in the 10%-20% range, which translates into $73.8 - $147.6 billion at retail value. That is a huge amount of product that will have to be resold somehow. While some will be sold directly to consumers, a huge amount of it will be sold in bulk to small resellers like us.
This will amount to billions of dollars worth of inventory. This is the currency of the post-holiday, liquidation gold rush. So find what you are looking for and grab your share!
The AllTech Wholesale marketplace has been growing. If you are in the market for used devices you should really check out the site. Last week they started selling lots of iPads as well. They ranged from 20 to 50 units each.