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.
Lately, he’s not simply flipping product – he’s constructing software program, consulting with auctioneers, and serving to others transfer quick and suppose smarter with AI. We talked about the place it began, what’s modified, and why he thinks the true 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 working on HiBid, an internet public sale platform
August 2023: Software program device, Listernaut, is developed
Current: Consults auctioneers on scaling by way of 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 problem 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 mentioned. Abruptly, 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 an alternative of shopping for his normal 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 huge cargo, which value about $40,000, helped launch his enterprise, AuctionFuel, ahead. “It was like a present from the gods,” Bert mentioned.
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 realized to show previous frustrations into smarter shopping for methods.
From Earnings to Software program Growth
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 sooner by way of using 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 really helpful resale value, and checklist dimensions, weights, and extra. One of the best half? The software program may 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 mentioned.
“We work with among the fastest-moving auctioneers within the nation to permit them to create listings for merchandise on [reselling] platforms, wherever 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 know your unit economics.
Do you perceive how a lot it prices you to create a list, to promote it as a reseller? And when you don’t, you could discover that out sooner relatively than later as a result of most definitely, that’s consuming your enterprise 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 device that does the heavy lifting for you…that’s a giant distinction in revenue margins! And precisely why he developed this software program – to additional empower the public sale business to do what he did and change into extra environment friendly and worthwhile.
Assume the Market’s Too Crowded? Assume Once more.
Many individuals assume the resale market is just 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 largest gamers are simply scratching the floor.
“These [big liquidators] transfer hundreds of thousands of things a yr,” however to actually deal with the amount 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 may completely flip a worthwhile enterprise very quickly – with little or no down,” Bert affirms.
Planning for What’s Subsequent
Every time occasions are robust, folks look to avoid wasting a greenback wherever they will, and auctions are that space.
Tariff Outlook: Experience Out the Storm
With all of the macroeconomic and provide chain points, stockpiling product appears to be the secret proper now. Large gamers like House Depot and Amazon are just a few of the retailers which have frontloaded stock. In keeping with Bert, “They see forward 10 steps. They’re ordering greater than they’re gonna want immediately, they usually’re gonna journey by way of the storm.”
Per Bert, resellers would possibly wish to apply the identical methodology:
“You recognize, from B-Inventory particularly, it’s a very good product – when you purchase it, you’re going to earn cash on it. It’s only a matter of how briskly you wish to promote it, the place you wish to promote it, and what’s the perfect technique to show by way of the product.”
We cowl extra about tariffs on this weblog→ Why Tariffs May Be a Golden Alternative for Resellers.
Auctions for Client Buying?
Even with the success of eBay, auctions haven’t change into the norm for a way most customers store. Bert has hope that this will change in time. In his phrases, “I simply suppose there’s not a transparent business 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 sudden 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 prepared to adapt, keep sharp, and suppose large.
Are you a B-Inventory purchaser who needs to inform us extra about your reselling enterprise? Tell us, and we are able to function you!
