Avoiding Loss of Value: How Online Retailers Reduce Overstock [5 Reading Tips]

Avoiding Loss of Value Overstock Reading Tips
Source: Unsplash/CHUTTERSNAP

At the moment, the retail industry is struggling on many fronts at the same time. While some companies are unable to meet consumer demand due to a lack of raw materials and logistical problems, others are stuck with their goods. Higher prices and increasingly negative shopping experiences caused by delivery delays have curbed consumers’ desire to buy. By selling remaining stock and returned items on B2B auction platforms, you can attract new customer groups and prevent your goods from becoming shelf warmers.

Loss of Value Because Customers Change Their Preferences

As a result of the rising prices, consumers are saving money. 42 per cent generally refrain from making certain purchases at the moment. This is slowing down the online boom of recent years. At the beginning of 2022, online sales in Europe fell by 13 per cent.

It is not only consumer reticence that is causing goods to pile up in warehouses, but also the fact that the preferences of the remaining customers have changed. The urge to finally experience something after two years of the pandemic is also reflected in consumer behaviour. Instead of comfortable home wear, consumers are increasingly opting for leisure and office wear – and instead of ordering household goods, books and DIY materials online, they want to be active, for example by going on holiday again. The result: companies have no more space in their warehouses for new products and stocked goods are increasingly losing value. This particularly affects highly seasonal products, such as sunglasses and swimsuits, as well as goods that have new versions coming to market in relatively short cycles, such as smartphones.

Avoiding Loss of Value: B2B Auction Platforms Are Attractive for Many

One way to deal with this is to sell remaining stock directly to bulk buyers. This creates space in warehouses, but also results in substantial losses. After all, it takes a lot of effort to build your own network of trustworthy buyers – and the selling price of remaining stock is often less than ten per cent of the original price.

A much more profitable and less complex solution is to sell returned items and overstock on B2B auction platforms. BuyBay, for example, has developed Beluga Auctions, an AI-powered platform that has an extensive network of buyers. The platform makes sure that the more than 800 buyers are trustworthy and monitors compliance with market regulations. This way, BuyBay ensures that goods are not resold at lower prices after being purchased.

B2B Auction Platforms: This Is How It Works

Retailers can specify which products they want to sell and set a minimum selling price as well as additional criteria for reselling, such as a brand and country restriction. Potential buyers can then submit bids for the goods on offer. Retailers often get a better price than they would have with their own network of buyers. The platform also organises the shipping of goods.

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Handelskraft Trend Book Digital Champions Release

Trading in goods is a constant balancing act between changing customer needs and logistical challenges. A company-wide data culture, regular target group analyses and the latest trends in marketing and retail will help your company prepare for these tasks. Find out in our Handelskraft Trend Book 2022 »Digital Champions« which approaches you can use to get there. Fill out the form now and receive a free copy in your inbox!

Our 5 Reading Tips of the Week

A Guide to Selling Overstock Inventory and Still Make a Profit [ClearCycle]

Why Many Retailers Are Facing Excess Inventory This Season [FashionUnited]

Walmart Wishes for »Magic Wand« to Wave Away $1.5bn of Inventory [CIPS]

Inventory Spike Rings Alarm Bells for Retailers and Manufacturers [Investors’ Chronicle]

Why Is Stock Control Important to a Business Operation? [OGL]

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