Executive Briefings

Making the Most of Retail Product Liquidation

Retailers are moving away from liquidating outdated inventory for a set price of pennies on the dollar, says Jeremy Witte, COO of Genco Marketplace. Instead they are looking to partners to maximize liquidation returns through a network of secondary merchants.

The way retailers outsource reverse logistics services is changing, says Witte. Rather than completely turning over this business, many are partnering with providers like Genco Marketplace on a consulting basis and to reach a network of merchants in secondary markets.

“More retailers are transitioning liquidation activities back in-house, but they often find they lack the expertise and the relationships with merchants in the secondary market,” Witte says. “We work with hundreds of retailers and thousands of merchants specifically to develop a secondary market for unsold products.”

Over the last two years, in particular, the company also has experienced strong growth in service driven programs that focus on market analytics, labor efficiency and channel management, he says.

Witte explains that many companies already have a strong online presence and don’t want to have their products offered for sale through a different online storefront at a discounted price. “So we take that inventory and we move it into offline channels, which can include stores, kiosks or off-price malls,” he says. “That eliminates conflicts for the retailer.”

Genco Marketplace also helps companies improve their sustainability and carbon footprints, Witte says. “Last year we removed more than 12,000 tons of cardboard, waste, plastic and metal and we helped customers save more than 50,000 megawatts of power through projects like lighting retrofits at their facilities.”

To view the video in its entirety, click here

The way retailers outsource reverse logistics services is changing, says Witte. Rather than completely turning over this business, many are partnering with providers like Genco Marketplace on a consulting basis and to reach a network of merchants in secondary markets.

“More retailers are transitioning liquidation activities back in-house, but they often find they lack the expertise and the relationships with merchants in the secondary market,” Witte says. “We work with hundreds of retailers and thousands of merchants specifically to develop a secondary market for unsold products.”

Over the last two years, in particular, the company also has experienced strong growth in service driven programs that focus on market analytics, labor efficiency and channel management, he says.

Witte explains that many companies already have a strong online presence and don’t want to have their products offered for sale through a different online storefront at a discounted price. “So we take that inventory and we move it into offline channels, which can include stores, kiosks or off-price malls,” he says. “That eliminates conflicts for the retailer.”

Genco Marketplace also helps companies improve their sustainability and carbon footprints, Witte says. “Last year we removed more than 12,000 tons of cardboard, waste, plastic and metal and we helped customers save more than 50,000 megawatts of power through projects like lighting retrofits at their facilities.”

To view the video in its entirety, click here