From a post-COVID stock scramble to a $40,000 leap into liquidation, Bert Leffel, CEO of AuctionFuel and Listernaut, has seen what occurs whenever you go all in.
Today, he’s not simply flipping product – he’s constructing software program, consulting with auctioneers, and serving to others transfer quick and assume smarter with AI. We talked about the place it began, what’s modified, and why he thinks the actual alternative in resale continues to be forward.
Enterprise Evolution
- November 2021: Bert and his enterprise companions, Jeff Kaplan and Melissa Shepherd, bought a bankrupt e-commerce enterprise and re-launched as AuctionFuel
- November 2022: AuctionFuel is up and operating on HiBid, a web based public sale platform
- August 2023: Software program software, Listernaut, is developed
- Current: Consults auctioneers on scaling through AI software program adoption
Alternative Presents Itself: From Athletic Tape to Truckloads
Like many companies, Bert’s was hit by main provide chain disruptions and product shortages throughout COVID; his concern occurred to be securing athletic tape, which was their best-selling product on the time. “There was an ink scarcity for athletic tape, of all issues,” Bert stated. Immediately, they have been left with simply plain white tape and no options.
Bert thought of stockpiling the stock at wholesale costs to remain forward, however it was a significant funding. That’s when he found B-Inventory and determined to take an opportunity. As a substitute of shopping for his standard quantity of product – about 7 pallets – he went all in: “We determined… let’s take what we might sometimes spend in a month on wholesale and make investments that in B-Inventory.” What confirmed up? Seven full semi-trucks of stock.
“It virtually gave me a coronary heart assault,” he joked. “I broke out in hives.” However within the chaos got here an enormous alternative. That large cargo, which price about $40,000, helped launch his enterprise, AuctionFuel, ahead. “It was like a present from the gods,” Bert stated.
Since then, Bert has centered on constructing a extra constant and predictable system for sourcing. The ups and downs of the market are a part of the sport, however he’s discovered to show previous frustrations into smarter shopping for methods.
From Earnings to Software program Improvement
With the success of AuctionFuel and promoting retail returns, Bert determined to reinvest his earnings into growing software program that might permit the corporate to maneuver stock quicker by the usage of AI, picture recognition capabilities, and machine studying. After capturing a photograph of the merchandise, the software program leverages AI to explain what the product is, present a beneficial resale value, and record dimensions, weights, and extra. The perfect half? The software program can even map the merchandise to completely different marketplaces.
With AuctionFuel as a check heart for the brand new software program, Bert moved into this subsequent part of entrepreneurship: monetizing it by enabling different resellers to leverage the software program. “B-Inventory is actually a trusted ally in what we’re doing,” he stated.
“We work with among the fastest-moving auctioneers within the nation to permit them to create listings for merchandise on [reselling] platforms, anyplace from one to 10 seconds per merchandise.”
What’s the #1 piece of recommendation you’ll give to different folks?
“I completely inform everybody I speak to now to perceive your unit economics.
Do you perceive how a lot it prices you to create a list, to promote it as a reseller? And in case you don’t, you have to discover that out sooner fairly than later as a result of more than likely, that’s consuming your small business alive. Merchandise that don’t have a resale value of over $20 are costing most firms cash.”
The instance he gave was this: Take into consideration a $10 merchandise. If it’s costing you $7 to get that product shipped, listed, and bought, versus 30 to 50 cents utilizing a list software that does the heavy lifting for you…that’s an enormous distinction in revenue margins! And precisely why he developed this software program – to additional empower the public sale trade to do what he did and turn into extra environment friendly and worthwhile.
Assume the Market’s Too Crowded? Assume Once more.
Many individuals assume the resale market is simply too saturated, however that couldn’t be farther from the reality. “It’s a $2.2 trillion market, and it retains going up yearly,” Bert defined. And even the most important gamers are simply scratching the floor.
“These [big liquidators] transfer thousands and thousands of things a yr,” however to actually deal with the quantity of retail returns, “we’d want roughly 247,000 extra of them,” he figures. In different phrases, there’s nonetheless a large alternative.
If you happen to’re organized, perceive your numbers, and are able to hustle, “you possibly can completely flip a worthwhile enterprise very quickly – with little or no down,” Bert affirms.
Planning for What’s Subsequent
At any time when instances are robust, folks look to save lots of a greenback wherever they’ll, and auctions are that space.
Tariff Outlook: Journey Out the Storm
With all of the macroeconomic and provide chain points, stockpiling product appears to be the secret proper now. Massive gamers like Dwelling Depot and Amazon are a couple of of the retailers which have frontloaded stock. Based on Bert, “They see forward 10 steps. They’re ordering greater than they’re gonna want right now, and so they’re gonna journey by the storm.”
Per Bert, resellers would possibly need to apply the identical methodology:
“, from B-Inventory particularly, it’s product – in case you purchase it, you’re going to generate income on it. It’s only a matter of how briskly you need to promote it, the place you need to promote it, and what’s one of the best methodology to show by the product.”
We cowl extra about tariffs on this weblog→ Why Tariffs May Be a Golden Alternative for Resellers.
Auctions for Shopper Procuring?
Even with the success of eBay, auctions haven’t turn into the norm for the way most shoppers store. Bert has hope that this could change in time. In his phrases, “I simply assume there’s not a transparent trade chief by way of shopper consciousness so far as a platform is anxious as of but.”
From athletic tape shortages to truckloads of stock, Bert turned surprising challenges into main wins. By leaning into public sale sourcing and investing in smarter instruments for stock administration, he’s not solely constructed a thriving enterprise however helps others do the identical. His journey proves there’s nonetheless loads of room (and revenue) within the resale area for these keen to adapt, keep sharp, and assume massive.
Are you a B-Inventory purchaser who needs to inform us extra about your reselling enterprise? Tell us, and we will function you!
