Technology is changing how brands and manufacturers approach excess inventory.
Over the past few years, a new wave of B2B excess inventory marketplaces has entered the market, with several backed by substantial venture capital. These platforms help brands find buyers for excess merchandise by bringing sellers and buyers together in one place. Ghost has built a marketplace connecting brands with off-price buyers. Highstock raised a $30 million Series A led by Andreessen Horowitz to expand its AI-powered marketplace, which has built an early focus in beauty and personal care. Spoiler Alert has built its platform around excess inventory in food.
The investment is worth considering.
Excess inventory is a real challenge for brands, and finding the right way to move it is not always easy. The secondary market is fragmented and often relies on long-standing relationships, making it difficult to find the right buyers. Technology can make the process easier by giving sellers access to more potential buyers.
But that raises an important question:
Is finding more buyers really the hardest part of moving surplus inventory?
In our experience, particularly with large quantities of inventory, it often isn’t.
The harder part is figuring out which buyers can actually take the inventory, what they are willing to pay, how much they can handle, where the products will be sold, and how to structure the deal to recover as much value as possible without putting the inventory in front of the wider market.
A marketplace connects inventory with buyers. Overstock Trader approaches it differently. We start with the inventory, figure out which parts of the secondary market make sense for it, then go to known buyers based on their purchasing capacity, category experience, resale channels, and fit for that specific opportunity.
Neither approach works for every situation.
But when a company is moving many thousands of units, dealing with sensitive pricing information, working around channel restrictions, or trying to get the most out of a complicated inventory position, access to buyers is only the beginning.
Pricing matters. Buyer selection matters. Brand control matters. Timing matters. Channel strategy matters.
And discretion matters.
The Hidden Cost of Too Much Exposure
Think about how a house listing works.
A property that sells in three days can signal strong demand and appropriate pricing. But when a property sits on the market for weeks without selling, buyers may begin to question its value. Buyers may see an opportunity to negotiate more aggressively, making lower offers increasingly likely.
Excess inventory can face the same dynamic.
When buyers repeatedly see the same inventory available without it selling, the opportunity can start to feel stale. Instead of creating urgency, continued exposure can do the opposite. Buyers may assume others have already passed and become more aggressive with their offers.
From Our Experience: When Buyers Remember a Listing
We saw this happen firsthand with a brand whose inventory had previously appeared on a beauty liquidation platform.
When we later brought a separate, unrelated opportunity from that same brand to buyers in our network, several immediately recognized the brand from the earlier listing. They also knew what that other product was listed for.
The new inventory had nothing to do with the previous opportunity, but buyers remembered seeing the brand. That recognition affected how some of them approached the new deal and the pricing they were willing to consider.
What this showed us: Inventory exposure does not necessarily end when a particular inventory is sold or removed. Buyers remember what they see, and that history can influence how they approach future opportunities from the same brand.
For branded, first-quality merchandise, that matters. A company may have existing wholesale relationships, MAP requirements, restrictions on Amazon or other marketplaces, export requirements, or other channel considerations.
The objective is not simply to sell the inventory. It is to recover value without creating unnecessary problems elsewhere in the business.
From Our Experience: When Inventory Travels Beyond the Marketplace
We recently encountered another situation that illustrates why brands need to understand how broadly their inventory is being distributed.
A broker circulated an inventory opportunity through an email distribution list. When we spoke with the broker, they confirmed that the inventory originated on a B2B excess inventory marketplace.
That raised an important question: If a brand lists inventory on a private marketplace, how much visibility does it have into where that opportunity ultimately travels?
We don’t know whether the broker’s distribution was authorized by the marketplace or the original seller. But the situation highlights an important consideration for brands. Once inventory information reaches an intermediary, it may be shared with additional prospective buyers beyond the original marketplace audience.
This is why brands should carefully review a marketplace’s terms and conditions before listing inventory. Those terms may permit inventory information to be shared through private channels or with third parties. Brands should understand who can access their opportunities, whether intermediaries are permitted to redistribute them, and what restrictions apply to further sharing.
For brands concerned about protecting pricing, retail relationships, and distribution channels, that distinction matters.
A password-protected marketplace may limit who can initially access an opportunity, but that doesn’t necessarily mean the inventory information will remain within that original audience.
What this showed us: Discretion isn’t simply about keeping inventory off public websites. It’s about understanding who receives an opportunity, whether they can share it further, and how much control the brand maintains over its distribution.
More Buyers Do Not Always Mean More Demand
The appeal of a marketplace is easy to understand. Put inventory in front of more buyers and increase the chances of finding demand.
For many inventory situations, that can work well.
Large excess inventory positions can be different.
If a company has 50,000, 100,000, or 500,000 units to move, there may only be a handful of buyers with the purchasing capacity, category experience, distribution network, and appropriate resale channels to absorb that kind of volume.
Putting the inventory in front of hundreds of buyers does not necessarily create hundreds of realistic opportunities.
From Our Experience: Hundreds of Thousands of Cosmetics Units
We worked with a large cosmetics retailer that needed to move hundreds of thousands of units.
There were plenty of companies that would have been interested in the inventory. But interest and purchasing capacity are two very different things.
Some buyers might have been able to purchase a few hundred units. Others could handle several thousand. Only a much smaller group had the ability, category experience, and appropriate resale channels to purchase a meaningful portion of the overall inventory.
That raised a simple question:
Why show the opportunity to hundreds of buyers who were never realistic candidates to purchase it?
Instead, we focused directly on known and vetted buyers with the purchasing capacity and appropriate channels to handle significant volume.
What this showed us: For large inventory positions, the number of potential buyers matters far less than the number of buyers who can actually execute the transaction.
When only a handful of buyers can realistically do the deal, those buyers are the market.
Sometimes the Best Buyer Is Not One Buyer
There is another side to the volume equation.
Sometimes there is a buyer capable of purchasing an entire inventory position, but selling everything to that buyer would require giving up too much on price.
From Our Experience: Moving More Than One Million Food Units
We worked with a food manufacturer that needed to move more than one million units of date-sensitive inventory.
Because of the dating, time mattered. The simplest solution would have been to find one buyer willing to take everything.
But the economics did not work.
For one buyer to absorb more than one million units and take on all of the inventory risk, the price would have needed to be extremely low, potentially pennies on the dollar.
Instead, we broke the inventory into more manageable quantities and approached different buyers based on what each could realistically absorb within the available dating.
One buyer did not need to solve the entire problem.
By dividing the inventory among several qualified buyers, we helped the manufacturer achieve a stronger overall recovery than a single bulk transaction was expected to produce.
What this showed us: The buyer capable of purchasing the most inventory is not necessarily the buyer who produces the best recovery. Sometimes maximizing recovery means finding the right buyers, plural, rather than the one buyer willing to take everything.
Sometimes the right strategy is one large transaction. Other times, breaking inventory into several carefully structured opportunities creates better economics.
Knowing the difference requires understanding both the inventory and the buyers.
Buyer Access Is Only Part of the Equation
One of the appeals of the marketplace model is the ability to connect inventory with a broad pool of buyers. But generating interest is only part of the equation.
Pricing, timing, lot size, positioning, and even the order in which buyers are approached can affect the outcome.
From Our Experience: Same Inventory, Two Different Approaches
We worked with a company that wanted to test two different approaches to selling its surplus inventory. The company worked with Overstock Trader while also offering inventory through one of the marketplace platforms.
Before approaching buyers, our team developed a plan for how we believed the inventory should be taken to market. We provided guidance on pricing, identified different buyer groups and channels, and created a tiered recovery strategy based on how much inventory different parts of the market could realistically absorb.
The inventory being offered through the platform was introduced at a much more aggressive price.
Instead of creating room to negotiate, the initial pricing turned buyers off. Once buyers had seen the inventory at a price they thought was unrealistic, it got a lot harder to get them interested again.
Our approach was different.
Rather than treating the entire inventory position as one opportunity with one price, we approached different corners of the market based on where the product fit, how much individual buyers could absorb, and what those buyers could realistically pay.
That gave us the ability to test the market, learn from buyer feedback, and pursue different levels of recovery.
What this showed us: Having access to buyers is not the same as knowing how to sell to them. Pricing, positioning, sequencing, lot size, and an understanding of the different parts of the secondary market all affect the final recovery.
Technology can make it easier to reach buyers. It doesn’t replace the need to understand them.
The Buyer Pool Is a Math Problem
It helps to think about the buyer pool as a funnel.
Start with every buyer who could conceivably purchase the category.
Then narrow it down.
Which buyers can handle the quantity?
Which have the financial capacity to execute the transaction?
Which operate in acceptable resale channels?
Which can comply with Amazon, MAP, export, geographic, or other restrictions?
Which buyers can make the economics work at a price that makes sense for the seller?
And finally, which of those buyers actually want this particular inventory right now?
A network might contain hundreds or even thousands of potential buyers, but after working through those questions, perhaps only five or ten are realistic candidates for a particular opportunity.
Those buyers are the real market.
This is one of the fundamental differences between reach and relevant reach.
The goal should not necessarily be to show inventory to the largest possible number of buyers. It should be to create enough competition among the buyers who can realistically purchase it.
That is why maximizing exposure and maximizing recovery are not necessarily the same thing.
When a Marketplace Fits, and When a Private Buyer Network Fits
None of this means marketplaces are the wrong choice.
B2B excess inventory marketplaces solve a real problem by making it easier to connect inventory with potential buyers. They can be particularly useful when broader buyer discovery is the priority and the inventory does not require highly selective distribution.
Private buyer networks offer a more targeted approach when an inventory position requires greater discretion, whether because of volume, brand sensitivity, channel restrictions, dating, pricing, or deal structure.
| Marketplace Model | Private Buyer Network | |
| Approach | Inventory is presented through a platform to generate buyer interest | Inventory is brought directly to selected buyers |
| Buyer pool | Broad pool of potential buyers | Targeted group of known and vetted buyers |
| Buyer selection | Buyers discover or are matched with available inventory | Buyers are selected based on fit, capacity, category experience, and historical offer data |
| Large-volume inventory | Broad exposure can generate interest from multiple buyers | Focuses on buyers with the capacity to execute a significant transaction |
| Pricing strategy | Pricing is established through the platform’s listing, matching, or offer process | Sellers receive experienced industry guidance on pricing and recovery strategies, informed by buyer relationships, historical offers, market demand, and the quantities different buyers can absorb |
| Lot structure | Inventory is generally presented as a defined opportunity | Inventory can be sold as one position or strategically divided among multiple buyers |
| Channel control | Seller controls and restrictions depend on the platform | Buyers can be targeted around specific channel, geographic, e-commerce, or other resale requirements |
| Market exposure | Opportunities are made available to the relevant audience within the platform. Further sharing depends on the platform’s terms and participant restrictions. | Opportunities are selectively presented to known and vetted buyers who are realistic candidates for the inventory. |
| Best suited for | Inventory that benefits from broader buyer discovery | Inventory where buyer selection, volume, discretion, pricing strategy, or deal structure are especially important |
The distinction is not simply public versus private, or technology versus relationships.
It comes down to how the inventory is taken to market.
Sometimes the right approach is getting an opportunity in front of more buyers. Other times, there are only five or ten buyers who actually have the capacity, channels, and appetite to get the deal done.
In those situations, knowing who those buyers are, what they can take on, and how to approach them matters more than the size of the audience.
A Different Approach: Start With the Buyers
Overstock Trader takes a buyer-first approach.
Rather than putting every opportunity in front of a broad audience and waiting to see who responds, we identify the buyers that make sense for the specific inventory and approach them directly.
Our network includes off-price retailers, closeout buyers, wholesalers, resellers, exporters, and other secondary-market buyers across a wide range of categories.
But the value of a buyer network is not just the number of buyers in it. It comes from knowing those buyers, understanding how they work, and knowing which ones are a good fit for a particular deal.
That means knowing what products they buy, how much inventory they can take, what prices they will pay, where they sell, whether they sell online, where they operate, and what restrictions they can work with.
That helps us determine which buyers should see an opportunity and, equally important, which buyers should not.
For one inventory position, the right strategy might be approaching three buyers capable of purchasing the entire quantity.
For another, it could mean dividing the inventory among multiple buyers across different channels.
In another situation, export may provide the best solution.
The strategy should fit the inventory, not the other way around.
Overstock Trader can also purchase inventory directly. When a direct purchase is not the right fit, we can work through our network to place the inventory with buyers based on the seller’s objectives.
The goal is not maximum exposure.
It is getting the inventory in front of the right buyers, in the right way, at the right time.
Frequently Asked Questions
Can liquidating inventory hurt my brand?
Liquidating inventory doesn’t have to hurt your brand. The bigger risk isn’t selling into the secondary market. It’s losing control over where the inventory ends up, who purchases it, and how it’s ultimately resold.
If you’re thoughtful about which overstock buyers you work with, which channels they sell through, how it’s priced, and what resale restrictions you put in place, you can recover real value from that inventory without putting your core business at risk.
How does Overstock Trader’s approach differ from B2B excess inventory marketplaces?
Marketplaces can be a good option when the goal is to get inventory in front of a large pool of buyers and generate interest quickly. Overstock Trader takes a different approach.
Rather than listing inventory publicly or on a password-protected marketplace, we work directly with an established network of off-price retailers, wholesalers, exporters, and other approved channels. Our industry experience also allows us to provide guidance on pricing, lot structure, and channel selection, helping brands pursue recovery while protecting their broader business interests.
Is there an alternative to listing excess inventory on a platform?
Yes. Inventory can be placed directly with buyers of excess inventory through an established buyer network rather than being listed on a marketplace. This allows opportunities to be selectively presented to buyers based on category, purchasing capacity, resale channels, and other requirements.
Can prolonged marketplace exposure affect inventory recovery?
Yes. When the same inventory remains visible to buyers without selling, it can begin to lose its appeal. Buyers may assume others have passed on the opportunity, creating additional negotiating leverage and potentially driving offers lower. This is one reason brands should consider how broadly and for how long their inventory is exposed.
Can previous listings on inventory liquidation platforms affect future negotiations?
Often, buyers who specialize in a particular category see a significant amount of inventory and remember brands and opportunities they have encountered before.
We have experienced situations where buyers recognized a brand from a previous platform offering, even when the inventory we were presenting was completely unrelated. That is one reason brands may want to consider how broadly an inventory position is circulated.
What kind of inventory volume works best for a private buyer network versus a marketplace?
Marketplaces can work well for smaller or more fragmented quantities that can be sold across a broad pool of buyers. Larger inventory positions, particularly tens or hundreds of thousands of units, often benefit from a more targeted approach. An experienced buyer network brings established relationships with buyers who have the purchasing capacity, category expertise, and appropriate resale channels to handle significant volume. That experience also helps identify the right buyers, negotiate competitive offers, and move inventory efficiently without exposing it to the broader market.
Does a larger buyer network always result in a better recovery?
Not necessarily. What matters is the number of relevant buyers for a particular opportunity. A large inventory position may have hundreds of potential buyers in theory, but only a handful with the purchasing capacity, category experience, and appropriate resale channels to execute the transaction.
In some situations, breaking a large position into smaller quantities across several qualified buyers may produce a better recovery than selling everything to one buyer.
However, brands also need to think beyond the immediate transaction. A marketplace may generate a higher offer, but if that exposure undermines brand value, disrupts existing retail relationships, or creates pricing conflicts, the long-term cost to the business can outweigh the additional recovery.
When brand protection and channel relationships matter, discretion can be more valuable than a higher offer. The goal isn’t simply to maximize recovery on one transaction. It’s to recover value without compromising the business’s broader interests.
Why does pricing strategy matter when clearing surplus stock?
The initial asking price helps shape how buyers perceive an opportunity. Pricing inventory too aggressively can discourage otherwise qualified buyers, while pricing too low can leave recovery on the table.
An effective strategy considers buyer economics, inventory volume, market demand, and potential lot sizes before approaching buyers. Different pricing or recovery tiers can also make sense depending on the quantities individual buyers are prepared to purchase.
How does Ghost’s marketplace model compare with private inventory placement?
Ghost gives brands access to a marketplace of buyers for excess inventory, which can be an effective way to generate broader demand. The tradeoff is that inventory is being offered through a marketplace rather than placed directly with selected buyers.
For large or brand-sensitive inventory positions, a more targeted approach may be appropriate. Overstock Trader works directly with known and vetted buyers, considering purchasing capacity, category experience, and resale channels before presenting an opportunity. This allows brands to pursue recovery while maintaining greater control over how broadly their inventory is exposed. Brands can also establish which off-price retailers, exporters, and resellers are permitted to see their inventory, helping maintain control over distribution and reduce potential channel conflicts.
How does Highstock’s approach differ from working with a private buyer network?
Highstock gives brands access to wholesale buyers through a marketplace designed for excess inventory. The primary difference is the model: inventory is offered through a platform and matched with potential buyers.
A private buyer network takes a more direct approach, bringing each opportunity to known and vetted buyers based on purchasing capacity, category experience, resale channels, and the specific requirements of the seller.
What should food and beverage brands consider when choosing between Spoiler Alert and a private buyer network?
Spoiler Alert focuses on food and beverage, where dating, geography, and inventory velocity can significantly affect recovery. With short-dated inventory, identifying buyers who can purchase, distribute, and resell the product within the available shelf life is especially important.
For brands that prioritize a more hands-on approach, the difference comes down to how inventory is taken to market. A private buyer network allows opportunities to be presented selectively based on the product, remaining shelf life, order size, geography, purchasing capacity, and resale restrictions. This can be particularly valuable when dealing with large quantities of short-dated or sensitive inventory.
Finding the Right Approach for Your Overstock Inventory
There is no single best way to move overstock inventory.
Some inventory benefits from broad exposure. Other opportunities require a much smaller group of buyers with the capacity, channels, and experience to handle them properly.
Sometimes maximizing recovery means selling everything to one buyer. Other situations call for breaking inventory into several transactions. And in some cases, protecting where the product ultimately appears matters just as much as the immediate recovery.
The important part is understanding the market before deciding how to sell.
Technology has made it easier than ever to connect excess inventory with buyers. But connections alone do not determine the outcome.
The right buyers, pricing, structure, channels, and strategy do.
That’s where Overstock Trader comes in. We help brands evaluate their inventory, identify the right buyers, and determine the most appropriate path to recovery. Sometimes that means purchasing the inventory directly. Other times, it means placing it discreetly through our established buyer network.
If your company has excess, aged, discontinued, or otherwise hard-to-move inventory, contact Overstock Trader. We’ll help you evaluate your options and develop a recovery strategy that considers both your immediate financial objectives and your long-term business interests.
