With the rise of platforms like Mercado Livre and Shopee, the online indirect selling market has become one of the most promising paths for those looking to supplement their income or even start a business. In this context, product auctions stand out as a strategic alternative for acquiring goods at competitive prices, maximizing profit margins.
According to Brazilian Association of Direct Selling Companies (ABEVD), Brazil has around 4 million registered resellers, placing the country in the 7th position globally in Direct Sales and as the leader in the sector in Latin America, according to World Federation of Direct Selling Associations (WFDSA).
According to ABEVD, in 2023, products sold by distributors generated revenue of approximately R$47 billion, covering both direct sales and multilevel and single-level marketing tactics.
This scenario reflects the immense economic potential of reselling in Brazil, driven by digitalization and the popularity of online platforms. “Auctions represent a unique opportunity for merchants to acquire quality products at significant discounts, increasing their profit margins. Additionally, the wide range of items available—from electronics and clothing to household goods—allows them to cater to different consumer profiles,” says Kwara‘s CEO, Thiago da Mata.
Why invest in auctions?
According to Technavio Research, the global online auction market is projected to grow by approximately US$2.51 billion, equivalent to R$18 billion by 2027, with a compound annual growth rate (CAGR) of 11.35%. In Brazil, this sector has been growing year after year and experienced a boom during the pandemic, when the segment grew by around 70%.
“We observed a nearly 300% growth in the number of lots sold on our platform, comparing the third quarter of 2024 with the same period last year. More and more, people are becoming aware of consumption issues and how they affect the planet. Reselling is one of the important paths toward a sustainable future and helps us rethink consumption patterns. Repurchasing items that are in perfect condition reduces unnecessary and improper waste,” Thiago points out.
How to start reselling?
To enter the world of auctions and successfully resell products online, the first step is to choose the right auction platform, whether physical or virtual. There are several specialized websites and accredited auctioneers, each with their own rules and conditions, which should be understood before participating.
Next, it’s necessary to conduct market research to identify the most sought-after products on resale platforms and check the average prices set by other sellers, which will help plan profit margins.
Additionally, social media platforms like TikTok and Instagram have become indispensable tools for merchants. Many use these platforms to create creative videos, such as unboxings of auctioned lots, attracting potential buyers and expanding their sales reach.
The dynamic and visual nature of these platforms helps engage the audience and build trust by transparently showcasing product details.
When listing products for sale, invest in detailed descriptions, high-quality photos, and prompt customer service—factors that can make all the difference in gaining buyer trust and boosting sales.
“The secret lies in researching, planning, and choosing products with high demand in the resale market. Many of these items are auctioned at discounts of up to 90% compared to market prices,” the CEO adds.
Examples of interesting auctions for repurchase
Kwara, one of the leading auction marketplaces for goods and products, has been promoting attractive opportunities for resellers, such as diverse lots of products. One example is the auction of Smartwatch products.
“These items are ideal for resellers catering to audiences interested in technology or sports, such as runners and marathoners. With discounts of up to 77% and bids starting at R$720 per lot containing multiple units, they can be resold with high-profit margins, especially in niches that value smart devices,” states Da Mata.
On the other hand, auctions of iPhone scraps contain devices and accessories in the lots and primarily attract technicians specialized in smartphone repairs. “By purchasing these items, professionals can repair or repurpose components to offer refurbished products, increasing accessibility to cutting-edge technologies,” he adds.
“Another opportunity lies in auctions of IT items, which include lots of laptops, projectors, and printers ideal for entrepreneurs working in offices or home offices. These devices, acquired at discounts of up to 90% with bids starting at R$50, can be redistributed or used to set up local businesses,” he explains.
These auctions not only represent a way to save on product acquisitions but also offer the chance to start a business in an accessible and strategic way. With possibilities ranging from resale to item repurposing, these marketplaces cater to different consumer and entrepreneurial profiles, promoting a more conscious and market-aligned consumption model.
“Regardless of the goal—whether starting a business, expanding product portfolios, or investing in sustainable practices—auctions can be the starting point for turning ideas into reality,” concludes Thiago.
