BidOnFusion is an auction platform liquidation website connecting liquidators with buyers looking to buy wholesale merchandise. It’s kind of like eBay, but for bulk wholesale auctions. BidOnFusion does both live auctions, and online auctions. So you find the auction that you want to participate in, place your bids, and (hopefully) get a great deal on new inventory.
There has been a rising demand over the past 7-8 years for salvage and wholesale goods; and manufacturers and suppliers are always looking for a way to move excess inventory. So these platforms were a natural evolution.
Liquidation websites have become very popular over the past few years, and bidonfusion.com has become one of the more popular marketplaces in this niche. The downfall of the economy in 2007/2008 really brought about a boom of eBay and Amazon sellers, which in turn led to the development of these platforms. Some of them good, some of them not so good.
BidOnFusion sells overstock auctions, clearance items, out-of season items, customer returns etc. You’ll find all sorts of of products from wholesale electronics, wholesale furniture, hardware, health & beauty, clothing, etc. And they carry merchandise from leading retailers and manufacturers like Walmart, Target, Macy’s, Sam’s Club, The Home Depot, and many more. So this can be a good opportunity to pick up name brand merchandise, at a very low price. liquidation pallets usually start at a fraction of the retailer’s wholesale cost, so the money-making potential is definitely there.
BidOnFusion conducts both auctions, and live auctions. With the auctions, you just bid online, like any other online auctions. With live auctions, these are auctions open to the public at their warehouse. It is a physical auction, at a specific location, however you can bid online as well.
If you’re new to these bidding sites, it can be a bit tricky. You might not know how to go about the whole process of participating in liquidation auctions. It’s actually pretty simple – you just need to be familiar with some terms, and the overall process flow. Lets take a detailed look into BidOnFusion…
First you’ll have to register for an account, if you have not already done so. Click on “My Account”, and then click on “Register”. This is a general registration that everyone has to go through.
Once you register, and find auctions that you may want to participate in, you will then register for each separate auction. After that you can place bids on the auction. If you are the successful winner of an auction, you will then contact BidOnFusion to arrange the pick-up or shipping details. Your merchandise will come from one of three locations: Phoenix, AZ, Indianapolis, IN, or Greenville, SC. If you don’t live within 200 miles of any of these locations, you will most likely want to arrange for shipping.
Some Nitty-Gritty Details
- There is a 20% buyers premium on all liquidation sales
- You will need to provide your reseller certificate for sales tax to be waived
- You have 72 hours after the sale to arrange for pick-up for shipping
- Shipping is available to either a residential/business address, or to a UPS hub
Until about a year ago, I was a full time eBay/Amazon seller. My inventory was mainly closeout and liquidation items, so I have participated in a large number of these auctions. A good amount of my wholesale pallets came from BidOnFusion. When you’re selling on eBay or Amazon, you constantly on a hunt for good deals on wholesale merchandise. And one of the problems you encounter is sourcing good quality merchandise. A lot of the merchandise you will find for sale are cheap knock-offs, and off-brand items, so one of the benefit of BidOnFusion that I appreciate is the ability to get name brand items from actual retailers.
Some Tips for Beginners
Not all liquidations auctions are good deals. There is a reason why this merchandise is auctioned off – the seller wants to generate as much income as possible. Auctions can work to your benefit, but to your expense as well.
What happens often with auctions is, it turns into a game between the bidders – The proverbial “bidding war”. At this point, its not about the actual merchandise for sale, but rather to win. So you will have to resist the urge to just win auctions. If you maintain your discipline, you will end up with liquidation lots that you can actually resell for a lot of money. You will find a lot of bad reviews about BidOnFusion, from people claiming that they did not make any money from the merchandise they bought, and blah blah blah. But the most likely reason for that is that they over-paid. So….DON’T OVERPAY! Have a price in mind beforehand, and don’t go above that limit.
Generally speaking, the merchandise in a wholesale pallet will sell on eBay/Amazon for about 3 times the wholesale value. The wholesale value is NOT what your paid for it, it is the amount that the retailer originally paid for it. For example, if the wholesale value is $2000, you should be able to sell all the pieces individually for about $6000. This is an average, and some categories will naturally sell for more. High end clothing, jewelry and watches, health and beauty, purses and handbags, and leather goods will usually sell for between 4-5 times the wholesale value.
So keep this in mind when you’re bidding. Every seller obviously has their profit level that they wish to earn, so factor in the 20% buyer’s premium, shipping cost, and eBay/Amazon or other selling fees that you will come across. Decide on a max bid before you bid, and stick to it. You’ll see a lot of auctions sold to others, but be persistent. It’s much better to win a few lots that will sell at a profit, than to win a lot of break-even auctions. Or worse…lots that result in a loss.
A lot of eBay and Amazon sellers sell within a specific niche, and so you’ll most likely be looking for specific categories that you wish to purchase. If so, you can reduce a lot of the work by setting notifications in the “My Alerts” area. By setting alerts, you will receive email notifications when there are new listings in your desired category. This way you won’t have to keep checking back to see what new lots they have in stock.
Also, if/when you purchase a lot, you will have to arrange for shipping. You can either have it shipped to you directly, or shipped to your nearest UPS hub. This is called hub to hub shipping, and will come out much cheaper than shipping direct to you. So if you have the resources to pick up your items from your local UPS hub, ask for both shipping estimates. The hub to hub options is almost always significantly cheaper, and is sometimes worth the extra effort.