Fortune 500 Retailer Triples Recovery Rate on General Merchandise
A Fortune 500 retailer had been working with B-Stock to sell its returned and excess inventory via a private B2B liquidation marketplace. As pricing and buyer engagement on these mixed lots leveled out, it was clear a new strategy to increase bidding and recovery was needed.
To increase buyer engagement and drive up pricing, B-Stock’s team of marketplace experts recommended that the retailer implement specific sorting strategies identified by analyzing data from across the B-Stock Network. After analyzing historical data and buyer behavior, the following categories were initially focused on:
- Electronics: when separated into their own lots, items like headphones, sound bars and portable devices typically generated higher pricing
- Seasonal Items: timed to travel season, individual lots of luggage sell well
- General Merchandise: nonperishable food and cleaning products are popular with dollar store and mom & pop store owners
Once the additional category-specific lots became available, buyer engagement with the site increased, causing recovery rates to jump significantly:
- The Electronics lots achieved a 50% increase in recovery (over mixed lot pricing).
- Seasonal Items, such as luggage lots, generated a 66% increase in recovery over mixed lot pricing.
- The retailer experienced an overall 155% jump in recovery for General Merchandise.
- A lot consisting solely of cleaning products achieved a 244% increase in recovery over a mixed lot.
Holiday returns are on the horizon, learn how to better tackle them by watching our webinar.
Ready to optimize your liquidation strategy?