How Retailers Increase Recovery Rates for General Merchandise
As a leader in online marketplace strategy, B-Stock’s service offerings include a tailored approach for each client on how to increase their recovery rates on liquidation inventory. One of our proven auction strategies includes increasing the buyer base; another is lot optimization. Both ultimately increase the recovery rate. Here’s how:
B-Stock’s 100,000+ buyer network consists of a wide range of qualified and approved business buyers interested in inventory across all product categories and conditions. Many are interested in specific types of products: one buyer might only want consumer electronics; another buyer might only want apparel; while another might only want salvage mobile phones. By optimizing your lots by category and then marketing to the right buyers you will achieve the greatest results.
An extremely popular category across B-Stock’s network of marketplaces is General Merchandise; this includes things like: paper, coffee, cleaning products, health & beauty, pets, toys, pots & pans and nonperishable food items. Generally, these lots are made up of large boxes of individually packaged items; maybe 28 rolls of paper towels or 100 coffee pods (this happens when a consumer removes one or two rolls or pods and then returns the rest). The good news is, a huge buyer base exists for individually wrapped items. First, General Merchandise products are in high demand at discount stores such as dollar stores and mom & pop corner stores. This is because individually wrapped nonperishable items like snack bags, coffee pods, and canned goods can be resold individually at high profit. Second, individually wrapped items can be easily stocked in a vending machine or refrigerator.
When large retailers take the time to separate their lots by category, it has been shown that recovery rates will increase. One particular retailer increased its pricing on General Merchandise lots—health & beauty, pets, toys, pots & pans—by 155% after optimizing its lots. The more the retailer sorted its lots, the higher the recovery: coffee-only and paper-only lots proved to be most popular; however, a lot consisting of solely cleaning products achieved a 244% increase in recovery.
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