Motorola’s monthly b2b wholesale auctions on returned or refurbished merchandise on eBay are recovering as much as 40% more on the value of the inventory than it gets for such merchandise through other channels, according to the company. The three-day Motorola Wholesale events, managed by auctions services provider ChannelAdvisor Corp. take the from of Dutch auction, a format used to offer mass quantities of one item.

The monthly sales have solved a problem for the manufacturer, as its regular customers were reluctant to purchase the small quantities of product at the end of their life cycle for which Motorola was seeking buyers. Motorola also was struggling to find a price point that would make the merchandise appealing, while still affording sufficient margins on the sales.

Securing sales of this inventory was consuming an inordinate amount of time, says Chip Yager, director of channel development for Motorola Solutions and Support.

Channel Advisor manages the event online, including activities such as posting the auctions, handling buyer inquiries and setting up a custom checkout page for the auctions. Motorola locates the merchandise for auction from within its inventory, supplies content on the items that Channel Advisor then drops into its listing template, and fulfills orders. The first auction, held in May, sold more than 17,000 pieces of equipment representing hundreds of thousands of dollars, the company says. Today, the auction dynamic and competitive bidding continues to boost sale prices at the monthly online event, with bids routinely reaching two to three times the original minimum bid.

By tapping into a market that is ready, willing and able, we have been able to improve our cash flow. This strategy has allowed us to have direct relationships with many smaller customers who could never buy from us before, adds Yager.