Although ecommerce has made retail more accessible to the public, it has taken away the advantage of being able to see a product "in the flesh" before making the decision to purchase it. With goods such as clothing, this is an important aspect of a sale.
As such, the rise of ecommerce has brought with it a surge of returned stock. In 2016 alone, the UK saw £20 million worth of returned online orders, and in many cases these products were not put back on virtual shelves.
Luckily, channels are now available to help retailers sort out this excess stock, enabling them to offset their losses - and even turn a profit.
Keeping in control
The emergence of online marketplaces such as eBay and its contemporaries have paved the way for specialised B2B platforms that allow sellers and buyers of returned and excess products to transact directly.
Instead of selling to a liquidator or jobber, retailers have the opportunity to sell on their secondary stock on a transparent auction platform. This expands the retailer's buyer base, which promotes competition - pushing prices up.
Because this type of platform allows retailers to bypass the liquidator and sell directly to the small business buyer (who is then selling direct to a secondary consumer), retailers are able to better control how their inventory enters the secondary market, and who is eventually buying it.
More competition means better prices
As with any online sales platform, the products available to purchase are accessible to more people than they would be in the window of a high street shop.
Selling dead stock on an online liquidation platform almost guarantees the seller a better price, because of the larger pool of prospective buyers (more buyers means more competition). Where a liquidator would typically negotiate down and only pay what they want to pay, pricing via an online auction dynamic is dictated entirely by competition between buyers.
Extending your reach
Finally, not only do online liquidation auctions give sellers the opportunity to make more money for their goods, they open the door to future prospects. A winning bidder on the other side of the world may well be looking for a regular supply of a particular kind of stock, leading to a valuable new contact.
Online overstock auctions prove to be a very efficient way for retailers to expand their reach and their professional networks.
Sponsored post. Copyright © 2018 Ben Whitaker, Director of EMEA at B-Stock Solutions