E-commerce platforms such as Amazon, Walmart, Shopify, and eBay have transformed product launches by cutting out many traditional retail expenses. Brands can avoid costly retail packaging, UPC assignments, and expensive marketing campaigns to enter the market more quickly and cost-effectively. This efficient approach allows for the quick testing of new products with minimal initial investment, providing a significant advantage in a competitive market.
However, many of e-commerce’s cost-saving benefits can become problems when products don’t sell as expected. The lack of traditional packaging and retail readiness makes selling unsold items through other channels hard. While brown corrugated boxes are great for shipping products safely, they make it tough to sell items in regular retail stores. Without marketing campaigns, there is limited brand recognition beyond customer review platforms.
Without a traditional retail network for discounting, there aren’t many options for unsellable products due to low demand, product imperfections, damage, or excess supply. Dealing with e-commerce returns is also a challenge, as returned items lose value once they can’t be sold online.
Around 20-30% of e-commerce inventory is unsold or obsolete, leading to markdowns, liquidation, or write-offs. Effective inventory management is crucial for minimizing losses.
However, e-commerce brands can utilize re-commerce and secondary outlets to sell their excess and overstocked items. That is another reason for eCommerce brands to have a mapped out reverse logistics process.
Top 6 Ways eCommerce Sellers Can Liquidate Excess Inventory
Now, let’s explore the buyers of excess e-commerce inventory.
Bin Stores
These stores are an ideal fit for eCommerce brands looking to offload customer returns and sell excess inventory at deeply discounted prices. By acquiring merchandise in bulk, these stores help eCommerce retailers clear out large volumes of returned or unsold goods quickly.
The bin store model places various items in large bins for customers to sift through, creating an engaging shopping experience that draws in bargain hunters, ensuring a steady inventory turnover. These buyers care less about brand names and new conditions, with a stronger focus on value and price.
Liquidators
Liquidators are an excellent option for eCommerce brands that need to quickly clear out large quantities of returned, overstocked, or unsold inventory. By partnering with inventory liquidation buyers, eCommerce retailers can recover some value from items that might otherwise be expensive to store or dispose of.
Liquidators then resell these goods to secondary markets, such as discount stores and online auction sites, helping eCommerce brands maintain streamlined inventory and focus on their primary sales channels.
Closeout Wholesalers
Closeout wholesalers are a great option for eCommerce brands looking to quickly clear out large quantities of returned, overstocked, or unsold inventory. By teaming up with closeout wholesalers, eCommerce retailers can regain some value from items that might otherwise be expensive to store or dispose of.
Closeout wholesalers then resell these goods to secondary markets, such as discount stores and online auction sites, helping eCommerce brands maintain efficient inventory management and focus on their primary sales channels. This partnership ensures that excess inventory is handled effectively, reducing financial losses and freeing up resources for core business operations.
Industry Trade Shows and Expos
Attending trade shows related to your industry is an excellent strategy for eCommerce companies wanting to sell their excess inventory. These events attract a wide range of buyers, retailers, and wholesalers, making them bustling hubs of commerce. Trade shows such as the Canton Fair, ASD Market Week, and the National Retail Federation (NRF) events give eCommerce companies the unique opportunity to showcase their surplus products directly to potential buyers actively seeking new merchandise.
The face-to-face interactions at these events can lead to immediate sales, bulk purchase agreements, and long-term business relationships. Additionally, trade shows offer a platform to network with industry professionals, gain insights into market trends, and receive feedback useful for future inventory decisions.
Online Marketplaces and B2B Platforms
Online marketplaces and B2B platforms such as Alibaba, AliExpress, DHgate, and Global Sources are great options for eCommerce companies to sell excess inventory. These platforms have numerous suppliers and overstock inventory buyers interested in bulk purchases and products without retail packaging.
By using search terms like “bulk,” “wholesale,” and “no retail packaging,” eCommerce businesses can efficiently connect with potential buyers, streamline transactions, and move surplus stock quickly. These platforms offer a wide reach and targeted search capabilities, making finding the right market for excess inventory and optimizing sales easier.
Liquidation and Overstock Websites
Liquidation and overstock websites, such as Overstock Trader, B-Stock, and Direct Liquidation, offer great options for managing excess inventory. These platforms sell overstock, returns, and unboxed items at discounted prices, providing a ready market for eCommerce companies looking to offload surplus stock.
By listing excess inventory on these sites, businesses can quickly reach a broad audience of bargain hunters and resellers eager to purchase goods at lower prices. This approach not only helps clear out storage space and recover some of the invested capital and ensures that products are moved efficiently and do not go to waste, thereby optimizing overall inventory management.
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Conclusion
Even if your merchandise was developed with eCommerce in mind, there is still hope without a brick-and-mortar retail strategy or packaging. There are still plenty of buyers for eCommerce inventory, but it will require additional effort. Thanks to their extensive buyer base and network, partnering with companies like Overstock Trader can help eCommerce businesses sell excess inventory.
Frequently Asked Questions
Why is excess inventory a problem for eCommerce sellers?
Excess inventory can lead to increased storage costs, reduced cash flow, potential product obsolescence, and the risk of having to sell items at a loss. It can also occupy valuable warehouse space that could be used for faster-moving products.
What are the common causes of excess inventory for eCommerce sellers?
Excess inventory can result from overestimating demand, poor sales forecasting, changes in market trends, delays in seasonal inventory turnover, or ineffective inventory management systems.