All retailers want to make the highest possible profit when they sell their products, and to do this, they just need to sell the right products to the right buyers in the right markets at the right price. Seems pretty straight forward, right? Just do what you’ve done in the past with full-priced products for off-price inventory.
This strategy translates at the highest level to the off-price category; however, it is invariably changed by the nuances of the off-price market dynamic. As the off-price sector rapidly evolves and expands around you, here are a few salient tactics you should anchor to as you work to rise above the noise, increase inventory sales to off-price retailers, and ultimately maximize your profits.
In the next few blog posts, we will discuss the following topics:
• Finding the right buyer in the right market
• Personalizing offers
• Creating good product descriptions
• Selling products actually in stock (inventory management)
• Fulfilling orders accurately and on time (PO management)
By the end, you’ll have a good sense of how to best sell your inventory to off-price retailers through buyer selection, curated and detailed product listings, accurate inventory management, and exact order fulfillment.
Part I: Selective Selections
How the ‘right’ market and buyer can make you the most money
Finding the location and market where there is the highest demand for, and lowest supply of, your off-price merchandise will allow you to sell your items at a higher price to buyers in those markets, resulting in a greater recovery value and better profits.
This off-price inventory strategy works for sales in both domestic and international markets.
Global markets all vary from each other in terms of product, demand, customer type, and selling price-points. Items that may be out-of-season or not in style in the US may be in high demand elsewhere. Thus, if you compile listings of merchandise catered to specific buyer needs in those global markets, you are more likely to sell your product at a higher price, as the buyer will be able to additionally sell that out-of-season/out-of-style product at a higher, and potentially even full, price abroad.
Also, focus your attention on identifying the optimal buyers for your excess inventory.
Not all buyers want the same products. They each have different merchandise they look for, along with different pricing models, selling locations, volume levels, and customers.
Taking the time to vet the current buyers that you use for your inventory, along with reaching out to other new buyers in both domestic and global markets, will enhance your chances of finding the right market with the right customers at the right time for your product.
And the ‘right’ buyer is not always the one with the highest market demand for the product.
Some buyers can be difficult to communicate with, holding up potential transactions that then lead to unnecessary losses, or can have a customer base that is not aligned with your brand.
While it takes time and effort to figure out whom to sell to, it really is one of the most important aspects of turning the highest profit on inventory and definitely worth the effort.