| Government agencies of all sizes have surplus assets | | | | assured that he can quickly turn over the assets at a |
| which they seek to dispose of. | | | | small profit, so he must pay as low as possible. |
| Prior to eBay, their methods for disposal of assets | | | | Lastly, simply treating unwanted assets as trash |
| were pretty limited. | | | | guarantees that the government agency will receive |
| Agencies could run auctions, contact liquidators, or | | | | no money for them. It will actually cost the agency |
| simply dispose of the assets as waste. | | | | money to properly throw out its unused goods.eBay |
| Auctions would often deliver the highest dollar return | | | | has changed all of this by connecting agencies with |
| but faced the issue of lack of buyer interest. Most | | | | millions of retail buyers. |
| government auctions are attended by a small group of | | | | Retail buyers are the key ingredient in insuring that the |
| buyers. Manyof them don't have the financial | | | | government agency maximizes its revenues on its |
| purchasing power that would enable auctioned assets | | | | unwanted assets. |
| to receive high bids. | | | | Retail customers are end users and buy based on |
| The other buyers could be professional resellers, | | | | necessity, curiosity, and price savings. |
| purchasing agents, or store owners looking to pay | | | | Since they are not looking to resell the merchandise |
| pennies on the dollar. | | | | they will pay more for it. |
| Since they need to make money on the purchased | | | | As long as they are still saving money they will be |
| assets, they can only purchase items at far below | | | | happy to buy the assets. |
| their actual value. | | | | While the government will not be able to dispose of all |
| At the end of most government auctions many lots | | | | of its assets through this fashion, it will be able to make |
| remain behind and must be disposed of at the | | | | more money on those items it does sell through |
| government's expense. | | | | eBay.eBay enables government agencies to connect |
| Liquidators on the other hand will buy the majority of | | | | with buyers throughout the United States and abroad, |
| the agency's assets, but will pay an even smaller | | | | thus greatly increasing its selling potential. |
| percentage of the retail value. The liquidator must be | | | | |