About Liquidity Services

Liquidity Services, Inc., a global commerce company, provides trusted marketplace platforms that power the circular economy. The company connects millions of buyers and thousands of sellers through its leading auction marketplaces, search engines, asset management software, and related services. The company's comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers. On November 1, 2021, the company acquired Bid4Assets, Inc. (Bid4Assets), a Maryland corporation based in Silver Spring, Maryland. Bid4Assets is a leading online marketplace focused on conducting real property auctions for the government, including tax foreclosure sales and sheriff's sales. Segments The company operates through four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. The GovDeals reportable segment provides self-directed service solutions that enable local and state government entities, including city, county and state agencies located in the United States and Canada, to sell surplus, salvage and real estate assets through the GovDeals and Bid4Assets marketplaces. The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce services. This segment uses the Liquidation.com, Secondipity and AllSurplus marketplaces. Through the end of third quarter fiscal 2021, RSCG operated the Liquidation.com DIRECT marketplace for truckload quantities of retail surplus. Those assets are sold on the Liquidation.com marketplace. The CAG reportable segment provides managed and self-directed service solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus and idle assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial seller assets are located across the Americas, Europe, Australia, Asia, and Africa. This segment uses the GoIndustry DoveBid and AllSurplus marketplaces. The Machinio reportable segment operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Solutions The company's solutions include e-commerce marketplaces, self-directed auction listing tools, and value-added services. Its marketplaces and services provide sellers a comprehensive solution to quickly bring surplus assets to market and enhance the financial value realized from the sale of their surplus assets while providing buyers with confidence in the reliable flow of goods they purchase. The company provides its sellers access to a network of liquid marketplaces with over 4.9 million buyers and a suite of services, including consultative surplus asset management, valuation, sales solutions, logistics capabilities, and self-directed service tools to efficiently manage its sellers' reverse supply chain and maximize total supply chain value. The company also seeks the optimal methods to maximize its sellers' net recovery using channel strategies and dedicated programs to deliver transparent, sustained value. The company, through its relationships with its sellers, provides its buyers with convenient access to a substantial and continuous flow of surplus and salvage assets. Buyers can find products in over 600 categories in lot sizes ranging from full truckloads to pallets, packages, and individual items. The company's solution combines leading e-commerce marketplaces with integrated sales, marketing, merchandising, fulfillment, payment collection, customer support, dispute mediation and logistics services. The company provides its buyers with a convenient method for sourcing surplus consumer goods and electronics, commercial capital assets, industrial equipment, energy equipment, biopharma assets and real estate. The company continually looks for new categories in which it can expand its presence. For any given asset, its buyers have access to a detailed product description, product manifest, digital images, relevant transaction history regarding the seller, and, where appropriate, the shipping weights, product dimensions and estimated shipping costs to the buyer's location. This enables its solutions to become an important source for surplus and salvage assets for many of its professional buyers and end-users. As of September 30, 2022, the company had 4.9 million registered buyers in its marketplaces. The company had access to millions of additional end-users through a range of external consumer marketplaces. During the year ended September 30, 2022, the company had approximately 3.1 million auction participants in its online auctions. Strategy The focus of the company's growth strategy is to build the world's leading marketplace for surplus assets to benefit buyers, sellers, and the planet. The company's strategic plan rests on four pillars, which it refers to by the acronym RISE, which pillars are recovery maximization, increase volume, service expansion, and expense leverage. Marketplaces The company's network of marketplace brands serves buyers and sellers in numerous industries across hundreds of product categories. The company's e-commerce marketplaces are efficient and convenient methods for the sale of surplus and salvage consumer goods and capital assets in over 600 product categories, including consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment and specialty equipment. They are designed to address the particular requirements and needs of buyers and sellers. The company operates and enables several marketplaces, including the following: The company's GovDeals marketplace provides self-directed service solutions in which sellers list their own assets, and enables local and state government entities, including city, county and state agencies, located in the United States and Canada to sell surplus and salvage assets. GovDeals also offers a suite of self-directed solutions that include transaction settlement and buyer marketing. The company's AllSurplus marketplace, launched in 2020, leverages its 20 years of experience in the online surplus industry to create a centralized marketplace that connects its entire global buyer base with assets from across its network of marketplaces in a single destination. The AllSurplus platform will continually evolve as the company enhances its marketplace technology and add new seller and buyer services. The company's Liquidation.com marketplace enables corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. This leading business to business (B2B) marketplace and its related value-added services are designed to meet the needs of its sellers by selling their surplus assets to domestic and international buyers. The company also provides a global search, advertising, and inventory management platform that connects dealers and sellers of used machinery and equipment in the construction, machine tool, transportation, printing, and agriculture sectors with interested buyers through its Machinio segment. Besides these leading business-to-business marketplaces, the company recognizes the need to reach end users for some assets its sellers have entrusted to the company. The company has developed the capability to sell products on its sellers' behalf directly to end-users and/or consumers using a range of existing marketplaces. During 2020, AllSurplus Deals was born as an expansion of the core platform enabling a hyper-localized direct to consumer experience. AllSurplus Deals provides a convenient, local pickup solution connecting the company's retail supply directly to consumers in its target markets. In addition to the company's e-commerce marketplaces, it has dedicated sales teams supporting the needs of its established global buyer base that seeks items in larger quantities than are offered through the company's standard auction platforms. These range from a single truckload to ongoing flows of goods for export anywhere in the world, where it markets, handles, and supports the full transaction on behalf of its buyers. The company expects to continue to meet the needs of its sellers and to access a growing range of products for all buyers by enhancing its multi-channel strategy to ensure the company creates value for assets at the end of their initial product life cycle. Value-Added Services for Buyers and Sellers In addition to the company's self-directed tools for its sellers, it has integrated value-added services to simplify the reverse supply chain processes for both its sellers and buyers. Seller Services The company offers value-added services to sellers in three areas: merchandising and channel optimization; logistics; and settlement and seller support, including compliance services. Merchandising and Channel Optimization The company's efforts encompass the services necessary to prepare retail merchandise for a successful auction and include the following: Channel Optimization- The company determines the marketplace and channel sales strategy that will create the most value for the individual asset using its real-time transaction systems and proprietary data to support ongoing optimization. Marketing and Promotion- The company uses a variety of both online and traditional marketing methods to promote its sellers' merchandise and generate interest in each asset. Asset Lotting and Merchandising- The company leverages its industry experience to organize the merchandise it receives into size and product combinations that meet buyer preferences within each marketplace and channel. Product Information Enhancement- The company provides digital images of the merchandise to be sold and combine the images with relevant information. To increase the realized sales value, the company also researches, collects and uses supplemental product information to enhance product descriptions. Logistics The company provides logistics services designed to support the receipt, handling, transportation and tracking of merchandise offered through its marketplaces, including the following: Distribution Centers- The company provides sellers with the flexibility of either having it manage the sales process at their location or delivering merchandise to one of its distribution centers. Inventory Management-Sellers benefit from the company's management and inventory tracking system designed so merchandise is received, processed and delivered promptly. Cataloguing Merchandise- The company catalogues all merchandise, which enables it to provide useful product information to buyers and sellers. In certain circumstances, the company inspects the merchandise and provides condition descriptions to improve quality and the financial recovery to the seller. Testing, Data Wiping, De-Labeling and Refurbishment- The company tests products, wipes electronic data, refurbishes and removes labels and product markings from merchandise prior to sale in order to add value to the asset and protect sellers' brand equity and distribution relationships. Return to Vendor or Product Disposition to Non-Sales Channels- The company manages the end-to-end processes for its sellers ensuring that returned merchandise is disposed of in compliance with a variety of disposition requirements. The company provides end-to-end management of returning products to vendors, charities, or channels outside of its leading marketplace solutions. Outbound Fulfillment- The company can arrange for domestic or international shipping for all merchandise, whether it is a small item or container load for export located in one of its distribution centers or at a seller's facility. Settlement and Seller Support Settlement and seller support services are designed for successful and reliable completion of transactions and include: Buyer Qualification- The company qualifies buyers to ensure their compliance with government or seller mandated terms of sale, as well as to confirm their ability to complete a transaction. Collection and Settlement- The company collects payments on behalf of sellers prior to the delivery of any merchandise and disburse the proceeds to the seller after the satisfaction of all conditions of a sale. Transaction Tracking and Reporting- The company enables sellers and buyers to track and monitor the status of their transactions throughout the sales process. The company supports the successful completion of each transaction on behalf of the buyer and seller. The company provides a range of comprehensive reporting services to sellers upon the completion of a transaction. The company's invoicing and reporting tools can be integrated with the seller's information system, providing a more efficient flow of data. Seller Support and Dispute Resolution- The company provides full support throughout the transaction process and dispute resolution for its buyers and sellers if needed. Buyer Services Many of the services the company provides to sellers also benefit buyers by providing them with the information to make a more informed bid and by delivering the goods they purchased. The company's buyer-focused services include: Intelligent Alerts and Recommendations- The company notifies buyers of upcoming auctions based on their registered preferences and prior transaction history. Registered preferences can be as broad as a product category or as specific as a part number or key word. The company uses this information to ensure informed recommendations whenever it identifies a product that fits a buyer's preference. The company will alert its buyers based on their preferences when auctions are initially launched or nearing conclusion and based on various other parameters to enable its buyers to see relevant products. Search and Navigation Tools-Buyers can search the company's marketplaces for products based on a variety of criteria and personalized settings, including product category, keyword, lot size, product condition, product geographic location and auction ending date. 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 data, seller performance, and online shipping quotes to help understand their landed cost. Broad and Flexible Range of Shipping/Pick-Up Options- The company can provide packaging and shipping services for many transactions, whether it is a small item or container loads for export, including buyer pick-up at its premises, for the majority of transactions, or support buyer arranged transportation. Secure Settlement and Buyer Support-Besides qualifying sellers, providing several electronic payment options and serving as a trusted market intermediary, the company verifies transaction completion, which enhances buyer confidence. In addition, the company provides full reliable buyer support throughout the transaction process. Sales and Marketing The company uses sales and marketing activities to acquire and manage its seller and buyer accounts. The company's sales activities are focused on acquiring new sellers and expanding existing sellers' use of its solutions. The company's marketing activities are focused on acquiring and activating new buyers and increasing existing buyers' participation. The company's marketing team also manages its marketplace brands and drives seller lead generation efforts that support the sales team. Sales The company's sales personnel develop seller relationships, contract to provide its services and manage the business accounts on an on-going basis. The company's sales team focuses on building long-term relationships with sellers that will generate recurring transactions. The company's sales team works with several auction partners globally for both purchase and consignment transaction model projects. In addition, it has a lead generation team, which tracks relevant media around the world. The lead generation team uses several sources to research information relevant to its marketplaces, which sources include news aggregators, trade journals, industry specific web sites and business reports on a global basis. The company organizes its sellers into two distinct groups: full-service sellers, and self-directed sellers. The company bases its approach on its experience in understanding and serving the unique needs of each type of seller: Full-service Sellers: These sellers require a customized approach, using a combination of the company's industry-focused sales team and its value-added services to create a comprehensive solution tailored to their needs. Self-directed Sellers: These sellers are offered a turn-key solution enabling them to self-direct the sale of their assets on the company's marketplaces by accessing tools and resources to optimize their net recovery. Marketing The company uses a variety of online and traditional marketing strategies to attract and activate buyers to maximize the number of bidders participating in its e-commerce marketplaces, as well as to support its sales team: Buyer Acquisition: The company utilizes marketing automation and digital marketing, including paid search advertising, search engine optimization, affiliate programs and cross promotion to acquire new buyers. The company supplements this online marketing with special event print media, classified advertisements and selected direct mail campaigns. Public relations campaigns, participation in trade shows and speaking engagements also complement its overall buyer acquisition efforts. Buyer Participation: The company uses many tools to increase buyer participation, including targeted opt-in e-mail newsletters that provide content based on the buyer's stated categories of interest and past bidding or transaction activity; special e-mail alerts highlighting specific products of interest; personalized recommendation engines; and convenient search tools that enable a buyer or prospective buyer to find desired items on its e-commerce marketplaces. Market Research: In order to better target buyers by industry segment, geographic location or other criteria, the company's marketing department continually gathers data and information from each of the buyer segments it serves. In addition, the marketing department conducts regular surveys to better understand buyers' behavior and needs. The company has adopted a privacy policy and has implemented security measures to protect this information. Sales Support: The company's marketing department employs a robust demand generation program, creates documentation and research to support its sales team in presenting the company to potential sellers, including sales brochures and white papers, and participates in selected trade shows. Vendor Contracts with Amazon.com, Inc. The company's RSCG segment has multiple vendor contracts with Amazon.com, Inc., under which the company acquires commercial merchandise to sell under the purchase model. Government Regulation The company continues to address changes in state, federal and international privacy laws and regulations, including the General Data Protection Regulations (GDPR) in the European Union. Intellectual Property The company is the registered owners of several Internet domain names, including www.liquidation.com, www.govdeals.com, www.allsurplus.com, www.secondipity.com, www.go-dove.com, www.machinio.com, www.machineryhost.com, and www.bid4assets.com. The company pursues the registration of its domain names in the U.S. and internationally. The company has no patents or registered copyrights. History The company was founded in 1999. It was incorporated in Delaware in 1999 and commenced operations in 2000. The company was formerly known as Liquidation.com, Inc. and changed its name to Liquidity Services, Inc. in 2001.

Country
Industry:
Catalog and mail-order houses
Founded:
1999
IPO Date:
02/23/2006
ISIN Number:
I_US53635B1070
Address:
6931 Arlington Road, Suite 200, Bethesda, Maryland, 20814, United States
Phone Number
202 467 6868

Key Executives

CEO:
Angrick, William
CFO
Celaya, Jorge
COO:
Data Unavailable