Can You Find Luxury Brands in Clothing Auctions?

Are you a reseller looking to stock up on luxury brands? Clothing auctions are one of many great ways to buy high-quality items in bulk. B2B recommerce sites like B-Stock offer large amounts of overstock, returns, and end-of-season items from well-known retailers. (Think Nordstrom, Rent the Runway, Lands’ End, and more!) Auctions are perfect for resellers, helping you get inventory in bulk and at low prices so you can build your inventory and boost your profits. With the right bidding strategy, you can find amazing deals on designer and everyday apparel. Let’s dive into how these auctions work and how they can help your business grow.

What Are Liquidation Auctions?

Liquidation auctions are a way for businesses to sell large quantities of unsold merchandise quickly. It’s how retailers clear out inventory that is overstocked, returned by customers, or left over after a season ends. For resellers, liquidation auctions provide a chance to buy this inventory in bulk at prices well below retail that can be resold for a profit.

How Liquidation Auctions Work

Liquidation happens when retailers or brands need to make space for new inventory or get rid of unsold items. Rather than selling individual pieces, they group the merchandise into pallets that get sold to liquidation buyers, wholesalers or put up for sale on recommerce sites like B-Stock.

For this blog, we’ll focus on auctions where resellers bid to win these lots. Because the inventory is sold in bulk, the price per item is much lower than what you’d find in stores. This makes auctions a smart way for resellers to maximize their purchasing power. Whether you’re new to the business or looking to expand your offerings, liquidation auctions can be a cost-effective way to grow.

Types of Clothing Found in Liquidation Auctions

Clothing liquidation auctions offer a wide variety of items so you can fill your shelves (virtual ones, too!) with all sorts of different styles and sizes. You’ll find casual wear like T-shirts, trousers, and jackets, as well as activewear and formal wear. Accessories, footwear, and handbags are part of the larger apparel category as well. Seasonality plays a role in the type of inventory available–depending on the time of year, you may find more spring/summer apparel vs fall/winter apparel, lighter and brighter pieces vs thicker and warmer tone pieces.

Can Luxury Brands Be Found in Liquidation Auctions?

Yes! Resellers interested in designer clothes and luxury brands can have luck with liquidation auctions, depending on the seller. Sourcing overstock and returns can offer a mix of products that appeal to both everyday shoppers and those seeking upscale items. The key is carefully reviewing the auction lot manifests to understand what’s included. This way, you’ll ensure you get the right business inventory.

Luxury Brand vs Everyday Apparel

Luxury brands are known for their high quality, special designs, and exclusivity. Customers often buy these products not just for their looks but for the status of owning them. That being said, if your business operates on velocity and bargain deals for customers, this may not be the type of inventory for you.

If you’re looking to keep a consistent flow of inventory that can appeal to more than just high-end buyers, department store auctions can work well for you as they tend to carry both luxury and everyday items.

Why Do Luxury Brands End Up in Liquidation Auctions?

Luxury brands may seem exclusive and untouchable, but they are not exempt from liquidation auctions. After all, Gucci and Louis Vuitton still follow the same retail cycle as everyday products, and sometimes, stores need to sell them quickly. Overstock, customer returns, and seasonal trends all play a role in sending luxury goods to auction. Let’s break it down:

• Overstock: Stores sometimes order too much inventory and need to make space for new products either on the sales floor or in their warehouses. (Tip: These items have never been sold and thus hold the highest resale value!)
• Customer Returns: Even expensive items are returned, whether because the size was wrong, the customer changed their mind, or the product had minor flaws. Retailers can’t always resell these items in their stores, but they’re still valuable.
• Seasonal Trends: High-end stores often clear out last season’s collections to bring in fresh styles. For example, winter coats might be liquidated in spring, and summer dresses may go to auction in the fall.

A Note on Seasonal Trends

Seasonal shifts create opportunities for resellers. By buying off-season inventory, you can prepare for the next demand cycle. Stocking up on coats in the summer or swimsuits in the winter allows you to offer these items when they’re back in high demand—and potentially earn a big profit. With the right timing and strategy, you can turn these auctions into a reliable source of premium stock.

Tips for Scoring Deals on Luxury Brands in Auctions

Participating in liquidation auctions is a straightforward process, but a little preparation can go a long way. We cover smart bidding strategies as well as ways to avoid common pitfalls. With a few key strategies, you can maximize your chances of scoring the best deals.

1. Find a reliable inventory source

To access clothing auctions and luxury brands, you need a reliable source. That’s where B-Stock comes in! We offer the biggest, most consistent selection of merchandise across dozens of categories, lot sizes, and conditions directly from top retailers and brands.

Simply register, create an account, provide basic information about your business, and submit a resale certificate to purchase inventory tax-free (it’s your responsibility to charge sales tax to your customers later on). Once registered, browse available auctions to find lots that fit your needs.

2. Always review listing details

Everything you need to know about the lot is in the listing, so carefully review the product description and manifest if available. Look for details like sizes, conditions, quantities, and any restrictions like delabeling. If the manifest lists specific brands, check them to make sure they align with what you’re looking for. Doing your research can save you from surprises later.

Check out this blog for more information on evaluating auction listings.

3. Understanding item conditions

Auction lots often include items in different conditions, so it’s important to understand what you’re bidding on. Always remember that these can vary by seller!

Common conditions for apparel include:

• New: Unsold merchandise with no signs of use. A good place to start if your customers expect pristine condition!
• Like-New: Unsold merchandise with minimal signs of handling. This may include items used for display purposes or on mannequins.
• Used-Good: Merchandise with signs of use from handling and/or customer exposure that is sellable without repairs needed. This is usually clothing purchased in multiple sizes/colors and later returned.
• Used-Fair: Merchandise with heavy signs of use from handling and/or customer exposure that is likely in need of repair prior to resale.

If you’re new to sourcing luxury items, aim for “new” or “like-new” lots to maintain the quality your buyers expect. It may cost you a bit more upfront, but you will have a better chance to sell items closer to retail value.

4. Bid strategically

To succeed in auctions, start by setting a clear budget. Decide how much you’re willing to spend on a lot, factoring in shipping costs and potential resale value. This will help you avoid overspending during a bidding war. Research the value of items in the lot so you can estimate how much profit you could make. Look up current resale prices for luxury brands or high-demand items. This step ensures you’re paying a price that leaves room for profit.

5. Have a plan for where you will sell luxury brands

If you’ve spent hours searching the racks at Goodwill or T.J. Maxx, you know how tedious and time-consuming it can be to find quality designer apparel “in the wild.” Those resellers may be more inclined to hold onto inventory until the right buyer comes along–remember, luxury items keep their value for a long time. You may want to consider listing these well-known brands on sites like Poshmark or Vinted, where buyers are willing to pay for quality and exclusivity.

Why Auctions Are a Smart Choice for Apparel Resellers

Auctions are an easy way for apparel resellers to get everyday brands and luxury items for less. Whether you’re sourcing lots of overstock or returns, there are plenty of well-known brands available for you to buy in bulk at low prices, making it easier to earn a profit.

With smart bidding and careful research, you can find great deals on designer clothing and everyday apparel, footwear, handbags, and more. Start exploring today and see how auctions can help you grow your business!