A growing crowd of thrifty shoppers are staying out of the malls this season and shopping through online auctions instead, buying returned and outdated merchandise for a fraction of the sticker price.
Driving the news: Auction houses have seen a boom in their customer base driven by an increased cost of living and new technology.
- Online auctions, which allow people to bid whatever they want for everything from clothes to furniture to electronics, are more accessible to the public than traditional in-person events.
Why it's happening: Returned merchandise is big business for the auction houses but a bust for stores selling items for cents on the dollar to clear up space for new stuff.
- As retailers struggle to manage the cost of returns, some have decided it's better just to send the unwanted merch directly to liquidators.
Why it matters: Everyone is pinching pennies these days, and online auctions let people get everything from furniture to clothes to electronics at a fraction of the price.
- Some people are even reselling auction items as a side hustle, per the New York Times.
Want to try out online auctions? Here are a few things to keep in mind:
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Budget for each biddable item. Compare retail prices and set a cap. A good benchmark is at most 50% of the sticker price.
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Avoid getting competitive. If you're focused on winning the bid at all costs, you might spend more at auction than if you bought brand new.
- Read the fine print. Some sites have fees, like a 20% "buyer's premium" fee plus 13% HST. So a $100 item will cost you $133.
And here are some sites to get started:
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Bidstreet.ca hosts bi-weekly auctions on Tuesdays from 7 p.m. to 10 p.m.
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DealDash will ship items to every province and territory except Quebec.
- Maxx.ca is one of the most popular sites with almost 75,000 registered bidders.