It is a well-known fact that purchasing/ buying/ producing are some of the most important processes for a business. To be able to timely fulfill your consumer demands, not only improves your credibility but ultimately results in growth. However surplus stock or excess inventory can turn out to be bad for your business as it leads to low stock turnover and also results in increased cost spent on managing it.
The major reasons resulting in excess inventory can range anywhere from Changing trends, slow economy, overbuying to seasonal overstocking but poor inventory and inability to find the right marketplace are the main reasons. Unsold stock not only restricts the flow of money but also leads to losses in terms of value and growth.
In recent years there has been a change in the way businesses mitigate the management of their excess goods. This can be attributed to an increase in social responsibility/environmental awareness, the importance of minimizing loss across different sectors of the business and greater access to liquidation solutions that maximize recovery of obsolete inventory.
The Solution
The trick is to explore the right group of buses and then there is no product for which once cannot find a secondary market irrespective of the condition of the product. A web-based B2B online auction marketplace is one such platform. Such a platform allows for thousands of buyers and sellers to be able to view and bid on your inventory. This platform guarantees the highest price in the market, automates the sales process and delivers a quicker sales cycle. This allows for a product to be able to reach a buyer market instead of ending in the trash.
Selecting the Right Platform
Simply selecting a platform isn’t enough. Proper research and knowledge can lead you to the best B2B auction platform that can:
• Enable quick and easy access to a large base of interested buyers and sellers meeting your criterion.
• Keep your buyers and engaged while encouraging competition.
• Allow transactions from multiple locations, encouraging mobility and eliminating transportation costs.
Making the Best Use of it
Once you have the right platform available, understanding how to make the best of it will deliver great results. Efficiently offloading excess inventory will depend upon knowing how to best arrange the inventory and how to target the right buyers for it. If done correctly it can result in 40-70 percent of recovery from excess inventory. Some tips:
• Segment your excess lot by category, original MRP, date of manufacturing, etc.
• Maintaining a consistent supply of goods to drive repeat buyers and boost the recovery rate.
• Invest in attracting and retaining buyers to ensure healthy competition. Competition among buyers means higher prices.
The online B2B marketplace has a large untapped potential for growth and presents a great opportunity for managing excess inventory. As compared to a few years back, now there are all sizes of startups and online market places for all types of buyers, be it a small online marketplace reseller to a big chain of hotels.
This has made the job of disposing of excess inventory much easier for sellers and resellers.