Liquidity Services won its biggest early contract by selling off U.S. military surplus. It ran online auctions for goods others no longer needed, from excess inventory at big retailers to used vehicles and equipment from government agencies. Much of that surplus had gone to slow local auctions or to scrap. Buyers ranged from small resellers to large exporters. When it filed in 2006, Liquidity Services was turning a dusty corner of commerce into a steady online business.

Better Prices Than Scrap

William Angrick founded the company in 1999. The bet was that surplus goods would fetch better prices online, in front of many more buyers. Liquidity Services won large contracts with the Defense Department. It built sites such as Liquidation.com and GovDeals, where buyers bid against each other. Its sellers paid a share of each sale, so the company earned more as prices rose.

When the Contracts Shrank

Liquidity Services priced its IPO at $10 a share in February 2006 on the Nasdaq. It grew for years on its military surplus contracts. Then it lost some of them, and the stock swung widely. The company refocused on retail returns and government surplus. Its marketplaces still handle large volumes of goods from public agencies and retailers, and it remains publicly traded on the Nasdaq.

Cover: After the Sale, Clothes Exchange, Houndsditch, James McNeill Whistler. Art Institute of Chicago, public domain. Chosen for the clothes exchange after the sale (surplus).