Retail surplus comes in all shapes and sizes – from smartphones and tablets to apparel – and can present itself in numerous forms, from overstock inventory to goods returned from consumers. Every retailer and consumer brand has surplus; if managed effectively, it can add significant revenue to the bottom line.
Read on to discover how your organization can turn the burden of surplus inventory into profit to fuel your retail business.
Capitalize on the Growing Refurbished Market
To paraphrase a well-known saying, “one person’s return is another person’s treasure.” This has become more prevalent in recent years, as more value-conscious consumers are purchasing refurbished products. When returned products are properly wiped of consumer data and refurbished to factory specifications, they can easily be resold through tier-one marketplaces including the retailer’s own website.
To see just how customers view refurbished products, a recent survey from Liquidity Services asked consumers about their likelihood of buying a refurbished product. Seventy-five percent of respondents said they were likely to buy refurbished electronics online, while 94% had purchased a refurbished product in the three years prior to taking the survey. An expert surplus inventory partner can both refurbish your goods and help you reach refurbished buyers through B2B and B2C online marketplaces.
Reach Buyers Through Multiple Recommerce Strategies
Buyers of retail surplus come in all different kinds. Some are resellers, some small businesses looking to fuel their growth, some consumers looking for a great deal. Structure your recommerce strategy to ensure you’re reaching all three of these audiences.
You can reach reseller and small business customers by offering surplus inventory in truckload and palletload quantities, through an online marketplace and/or direct sales. To connect with consumers, sell individual items through your online storefront or eBay, Amazon, and other reputable third-party sites. Selling surplus inventory through a blend of B2B and B2C methods will ensure you balance recovery and speed while mitigating risk.
Remove Data to Ensure Compliance
Imagine the potential fallout if your organization inadvertently resold a returned laptop or smartphone with the original customer’s data on it. It’s crucial that all returned items are wiped before being sold in the secondary market. Look for a partner with proven data wiping capabilities that adhere to rigorous Department of Defense standards.
Contact us for more tips and tricks on how to effectively manage and sell your retail surplus.