Debunking the Myths of Customer Returns and the Use of Liquidation Channels
The right partner should drive a significant increase in the liquidation value, especially when compared to the existing paradigms. There should be a direct benefit in net recovery of the surplus assets, enabling the organization to free physical resources and/or reassign human capital to tier-one objectives.
Myth No. 3: Liquidation markets are small and localized.
Reality: The right partner can access a global network of buyers — the Internet isn't small or local.
When it comes to surplus or returned inventory, retailers should understand the value of a large, active and diversified buyer base that the best partners can provide.
The current economic environment is creating permanent changes in the way retailers address their supply chains. There's a greater emphasis on creating efficiencies and value for products that are moving away from consumers. Understanding the realities of what a liquidation model can provide and implementing an effective strategy will create lasting value in all economic climates.
Cayce Roy is president of Liquidation.com, a Liquidity Services Inc. marketplace, and has spent the past 20 years managing sophisticated and high-performance e-commerce, B-to-B services and logistics organizations (firstname.lastname@example.org).