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Sustainable Liquidation

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The Art of Sustainable Liquidation

 

Why is it relevant in the commerce industry?

 

With the rapid change in consumer buying behavior inventory stocking is on the rise.

  • Inventories of Walmart, Target, Kohl's, and Dick's in 2022 surged by ~40% worth billions of dollars in excess products due to shifting consumer demand and supply chain issues
  • In India, on average, a retailer will have 15-20% slow-moving inventory
  • Indian excess inventory market is estimated at US $30 billion across verticals

 

Enter inventory liquidation: An additional sales channels that are environmentally friendly and community conscious!

 

What is Inventory Liquidation?

 

Liquidation refers to selling off a company’s inventory at a huge discount to generate revenue.

 

In the current Age of Consumerism, the demands are difficult to predict, and they keep changing. When it comes to shopping these days, trends come and go as clearly shown by the #TikTokMadeMeBuyIt campaign from TikTok. Brands sometimes chose to remove products from the shelves if they are not selling, thereby becoming obsolete.

 

But excess inventory can also be good for brands as it can allow for faster restocking in response to any unprecedented demand. Bigger inventory will also help in securing wholesale prices from distributors with bulk purchase discounts. It can also help in securing brand positioning on shelves. And in case the demand is low, the brand can always go for inventory liquidation which is essentially an additional sales channel.

 

Benefits of online inventory liquidation

 

  • A viable revenue option
  • Helps environment as goods are not dumped or destroyed
  • Helps consumers get branded items at discount
  • Essential in some countries like France that has banned destruction of unsold goods
  • Reduces cost to company involved in warehousing such as storage cost, security cost, and others

 

How to Liquidate Inventory?

 

  • Amazon’s Liquidation Program – Amazon sells the excess inventory to third party liquidators and the company gets 5% to 10% of the average selling price.
    • Liquidation.com liquidation service
    • All Surplus Deals warehouse in Phoenix
    • FBA Grade and Resell Program
  • Sustainable Liquidation Through Third-Party Platforms – Sellers can anonymously declare the excess stock to a larger buyer base and sell goods at discounted prices though the platform.
  • Liquidation Pallets – YouTube creators are finding online deals for liquidation pallets and then selling the items through their channels.

 

 

 

 

Pollen’s Sustainable Liquidation

 

A Singapore based company that provides inventory liquidation solutions and channels.

  • Companies can liquidate excess inventory by listing on Pollen’s B2B marketplace to be sold to highest bidder.
  • Through the B2C channel, brands can find millions of consumers who are looking for branded products at a discount.

 

How India is doing Inventory Liquidation?

 

Several inventory liquidation startups have come up in recent years that are designed to help sellers to get rid of excess inventory.

 

Excess2Sell

A tech-enabled B2B service for Indian SMEs that can help in selling of excess inventory and free up any locked-in capital. It is “a one-stop platform for vendors, manufacturers, dealers, wholesalers and distributors for offering their unsold – overstock, excess, ageing inventory to buyers across various verticals,” according to Rajan Sharma, Founder & CEO, Excess2Sell.

  • FT’s Top 100 High-Growth Companies Across Asia-Pacific 2022 (Financial Times)

 

EOL Stocks

A B2B online liquidation platform for non-moving and slow-moving inventory of SMEs.

 

VALUESHOPPE

A platform that enables buyers and sellers dealing in bulk quantities that brands are looking to liquidate.

 

Companies to Watch

 

 

References:

  1. https://www.youtube.com/watch?v=66qOop6J8Q8
  2. https://www.apnnews.com/online-excess-inventory-liquidation-platform-excess2sell-com-features-in-fts-top-100-high-growth-companies-across-asia-pacific-2022/
  3. https://www.modernretail.co/retailers/retails-inventory-glut-means-big-business-for-liquidators/
  4. https://www.modernretail.co/retailers/unpacked-from-deep-discounts-to-phaseouts-how-retailers-are-unloading-excess-inventory/

 

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