As we dive into the market to see the trends of COVID-19 and the expected aftermath, there’s a wave of cancellations stemming from orders that were made months ago but will never sell. And according to Credit Suisse analyst Michael Binetti, this “will create the greatest buying environment of off-price in a decade.” With the surplus looming, different brands are expecting to re-engage with the off-price market in the second half of 2020 so they can clear out excess inventory. What’s more, the surplus could linger into 2021.

And, similarly to the last recession, consumer habits could pivot to needing, wanting and expecting lower prices (even as the economy improves). This will provide a huge opportunity for off-price due to its abundant apparel selection and affordability. But can off-price retailers handle all the volume? Some experts believe not. 

With the unprecedented volume of inventory that is likely to come, off-price retailers may have space, logistics, and financial challenges when it comes to accepting, moving, and purchasing the product. Every day that merchandise stands still, it ages, and as brands rush to get rid of excess inventory as quickly as possible, the demand may not scale evenly with the discounts. Not to mention that in a post-COVID-19 era, consumers may still not be comfortable going into potentially crowded stores.

So, how can brands prepare for what’s coming and ensure their surplus doesn’t end up in a landfill? The diversification of outlets is probably one of the best things to do. While off-price retailers may be able to absorb and sell some of the excess, tapping into the secondary market is another way for retailers to offset loss and protect their brand.

An online B2B sales channel – like the one provided by B-Stock – allows for  another avenue through which retailers can offset loss. With this type of solution, retailers and brands can sell their excess inventory to thousands of business buyers around the world through a private, online auction marketplace scaled to fit their needs. Nine out of the top 10 U.S. retailers work with B-Stock, using our platform to drive demand and achieve higher pricing as well as a faster sales cycle, all while maintaining brand integrity. 

If you want to learn how B-Stock can help you prepare for post-COVID-19 and help you harness the value of the secondary market, schedule a demo today. And join us this Thursday, April 23 for our webinar: COVID-19 Impact on the Secondary Market + Reverse Supply Chain to learn what trends B-Stock is seeing in the secondary market and reverse supply chain.

Request Demo


Register for Webinar

Join the largest global network of B2B liquidation marketplace

Request Demo

More from the B-Stock Blog

Tips for Companies to Limit Inventory Liability

Most people who aren’t familiar with the ebbs and flows of retail inventory assume that inventory is always an asset. After all, it’s made up of goods that you’ve purchased with real capital in order to sell for a profit.…

Jun 10 2021 · 5 min read

The Complete Checklist for Buying Liquidation Pallets

So you want to buy liquidation pallets? Well, our Complete Checklist for Buying Liquidation Pallets is a good place to start! First, we go into basics like what liquidation is and how to turn retail arbitrage into a reselling business.…

Jun 10 2021 · 13 min read

Best Gifts For Dad: What to Source for Father’s Day

An estimated 75% of Americans plan to celebrate Father’s Day. And whether that is with the father figure in your life, guardian, or grandparent, show them some love with a thoughtful gift. Spending last year reached an impressive $17 billion,…

Jun 07 2021 · 4 min read

Like what you see?

Subscribe to our newsletter to get the latest news from B-Stock.