Monday 23 January 2012

Clearance stock - How does this work?

Would you like to find out more on the stock clearance supply chain? Here are more details on how this works:

Also known as the reverse supply chain, the process of stock clearance represents the process of management (collection, upgrade, disposal, reselling and logistics) of all categories of ‘secondary’ inventory:

- Slow moving surplus stock (new unsold products)
- End-of-life and obsolete stock (unsold old model products)
- Manufacturer first and second choice products (rejected on the production lines because of substandard design features)
- Refurbished (customer returns or products displayed on store shelves that have been tested and restored technically and aesthetically)
- Raw returns (retail products returned by end-users within return policy terms and conditions)
- Used products (previously sold and put in used products, may present clear signs of use)

The stock clearance reverse supply chain usually starts from manufacturers’ and resellers’ need to dispose of large quantities of unsold consumer goods, of their recurrent raw customer returns and of obsolete stocks created by industry innovations and by changes in consumer demand trends.

Brand manufacturers and retailers usually work with dedicated partners for the disposal of their clearance stock that is re-sold in wholesale on the secondary market or is recycled.

Companies like Britcomdirect.com for appliances and DIY tools or Anovo for multimedia devices, handle both upgrading of raw returns (by professional refurbishing and repair of faulty products in ISO accredited facilities) and reselling of surplus stock to their network of international wholesale buyers and traders. The different types of clearance stock are then sold in local markets to clearance resellers and retailers.

In some cases, depending on the suppliers’ network of distribution, retailers and local resellers can buy clearance stock directly from these dedicated wholesale suppliers, which gives these small businesses a great advantage on the deals and the potential margins they can make from selling surplus stock to end-users, in outlet-type stores and on big e-commerce platforms like Ebay.com.

Finding great clearance stock deals worldwide is especially possible thanks to the development of the online environment. On the web you can find online trading businesses that offer various quality services for retail businesses in search of good suppliers of clearance stock. These services start from contact sourcing and business development, to online publishing of buying and selling leads, promotion of stock opportunities and of other companies’ services and online purchasing of surplus stock in bulk.

To give you some examples, international online marketplaces (e.g. alibaba.com) allow buyers and sellers in the stock clearance industry to find stock opportunities, connect and start remote business relationships; online auction websites (e.g. stockshifters.com) allow resellers and suppliers to publish their own offers online and sell them through automatic bidding systems; big stock clear

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