Every retailer and consumer brand has surplus, including returned goods, overstock inventory, and other items no longer required. These items can range from tablets and TVs to apparel and even store fixtures no longer needed. The reverse supply chain describes the process of managing these assets, and it is a critical aspect of a successful business. In fact, the reverse supply chain is now a $150 billion industry that is continuously growing thanks to retailers devoted to inventory management best practices.
Despite the opportunity in the reverse supply chain, however, many companies lack a comprehensive strategy that targets optimization. This is a costly mistake, as effectively managing this area drives higher recovery value, simplifies operations, and enhances productivity. By partnering with a trusted reverse supply chain provider, retailers and consumer brands can turn surplus inventory into maximum recovery through proven effective, reverse supply chain strategies.
If one small part of a reverse supply chain does not pull its weight, the whole process is in jeopardy
Here are three ways to improve the value of your reverse supply chain by engaging an expert provider:
1. Have A Professional Online Presence
According to Liquidity Services’ research, online marketplaces are the most common way for buyers to purchase surplus.
An expert partner like Liquidity Services will have a robust, professional online presence. It will have its own B2B and B2C marketplace sites and also the ability to sell surplus through your websites via white label ecommerce storefronts. Through these sites, the partner will also provide the merchandising details and photos buyers need to make purchasing decisions.
Additionally, a strong partner will have buyer-friendly features to better facilitate sales. Our research found that buyers desire features such as a “watch list” for items they may want later, a user dashboard for a comprehensive view of account information, and a “My Activity” portal to track bidding and buying activities. Make sure your partner provides these features.
2. Leverage Proven Recommerce Strategies
To be competitive in the secondary market, retailers need to turn to best practices in recommerce.
A trusted reverse supply chain provider such as Liquidity Services will drive online views to your surplus inventory through proven multichannel marketing strategies. Our latest survey data found that SEO, online advertising, and email marketing are the three most effective ways to drive buyers to online auctions. Make sure your provider leverages these methods and that they’re the focus of your recommerce strategy.
Consumers are always connected to the internet, making it an incredibly important channel in the secondary market
3. Implement An Effective Returns Management Program
Returns are a time-sensitive challenge for retailers and consumer brands. The longer they keep returned goods in their warehouses, the longer they stay on the books and the more their market value depreciates. This calls for returns management programs that work quickly and can provide long-term solutions that positively impact companies’ bottom lines.
A reverse supply chain partner such as Liquidity Services turns the challenge of returns into an opportunity to grow your bottom line. An expert provider will maximize value for your returns program by ensuring all items are reconciled and then shipped, disposed of, or resold in secondary markets as appropriate. Look for a provider that handles your entire program across all locations and adheres to all RTV and RMA agreements and the needs of your brand, streamlining this area to reduce costs, time, and hassle.
The secondary market is too valuable for retailers and consumer brands to ignore. For more information on how to maximize value for your reverse supply chain, contact us.