Challenge

A large, global OEM had been selling its refurbished products to a limited group of wholesalers and retailers via a single distributor. Limited sales channels and steep discounting drove down the recovery value for its refurbished goods, negatively impacting brand perception. The client desired a high-impact refurbished product program to protect its brand, sell more directly to consumers, and achieve greater recovery and velocity.

Solution

Liquidity Services’ team of experts developed a multi-channel sales strategy to balance recovery, velocity and brand perception for hundreds of thousands of units sold annually. These channels included:

  • Business-to-consumer (B2C): Liquidity Services launched new consumer-branded online marketplaces on more than 12 sales channels, including eBay, Amazon.com, and Secondipity.com, and also set up dropship capabilities on major retailer sites.
  • Direct Sales (B2B): Liquidity Services facilitated high-volume pallet and truckload sales through Liquidation.com Direct.
  • Online B2B Sales: Liquidity Services sold pallets of older models and shallow-depth SKUs on Liquidation.com to sustain velocity and maximize recovery.

Results

Liquidity Services established direct relationships with online and offline retailers. Recovery was increased by more than 20% in the first 6 months, and more than 500,000 units were sold the first year. The offline business buyer base was expanded by a factor of 20, growing it to 450+ business buyers. On-hand inventory was balanced and the reverse supply chain cycle time was reduced. The OEM’s brands of refurbished products are now seen very positively within all major consumer marketplaces, creating new customer growth at higher margins. 91% of consumers surveyed about these purchase experiences were either satisfied or very satisfied, and 83% of respondents answered they would recommend the brand to a friend.

Poorly managed product disposition in secondary markets can impact a brand's integrity and sales in its primary channels; a trusted partner can help an OEM uniformly manage its brand and pricing in the secondary marketplace.