Retailers Finding New Ways to Recover Value on Excess Inventory

The secondary and off-price apparel markets traditionally have not been known for having a plethora of brand name and designer fashion apparel and accessories. Times are changing, however, as the nation’s largest retailers are adopting new processes to increase the efficiency and recovery value of their shelf pulled, overstock, seasonal, and even consumer returned apparel items.
Trends over the past two years show that more of the largest retail and department store chains are embracing the online B2B liquidation channel as an essential part of their recovery strategy. Retailers are discovering, and appreciating, that as they integrate their reverse supply chain with online liquidation venues, more information becomes available about where the goods are being sold and for how much. This creates more certainty that the goods are being sold appropriately and that a global base of buyers will be able to access these goods, resulting in higher recovery values for the retailers.
What does this mean for businesses that operate in the off-price apparel market? Top brands and quality goods are available with just a few clicks of a mouse. And, as more and more retailers adopt online B2B sales channels, such as B2B online auction marketplaces, the flow of inventory will continue to grow.
In addition to finding high value, quality apparel, accessories, and other merchandise, sourcing online offers savings in time, money and other resources. However, many online options are available, and off price and secondary market purchasers must learn to recognize venues that not only provide a consistent flow of quality merchandise but are also proven to be trustworthy. Some of the best online resources come in the form of B2B online auction sites for bulk inventory, vertical search engines, online directory listings, and peer group forums.

What to Look for in an Online Auction Marketplace
Not all online auction marketplaces are created the same. While many online auction sites sell merchandise in bulk quantities, small retailers benefit the most from those with established seller relationships with major retailers, manufacturers and distributors. These sellers provide steady volumes of surplus apparel and other merchandise that is attractive for resale channels. In addition, purchasers should carefully review each auction, paying attention to specific information, including the following:

Quick Access to Products – Look for sites that have auctions closing in fewer than five days, in order to gain access to products in far less time than traditional sourcing methods.

• Detailed Product Information – Make an informed buying decision by purchasing from sites that provide superior product information such as digital images and detailed descriptions including condition category and shipping dimensions.
• Variety of Package Sizes and Product Conditions – Find the right products for any business, from single packages to full truckloads, mixed or single SKU lots, and multiple condition categories such as new, used, refurbished, returns, closeouts, shelf-pulls and even salvage. This allows buyers the pricing and quantity flexibility to meet specific needs.
• Multiple Locations – Check to see where the merchandise is located. B2B auction sites that house inventory in multiple locations are able to offer buyers deeper discounts on shipping within geographic regions.
• Shipping Options – Sites that provide shipping quotes and services ensure that buyers can both estimate the cost of delivery in advance of a bid and have the goods delivered, often with a negotiated discounted rate.
• Secure and Trusted Environment – Quality B2B auction sites will provide secure settlement and dispute resolution to assure the delivery of goods, buyer satisfaction, and a reliable means to resolve any problems that may arise.

As retailers, manufacturers and distributors of apparel and other consumer goods rely more heavily on the power of the Internet to sell surplus merchandise; the benefits of online sourcing for small retailers will also continue to grow. The benefits are huge in terms of cost, time and resource savings—three of the most valuable commodities in today’s competitive environment. By learning how to identify trustworthy online venues that provide quality apparel products for discounted rates, small businesses can spend more time on serving the end consumer and increasing the bottom-line rather than on inventory sourcing.

By Rob Caskey