Turning excess inventory into extra profit: the power of online auctions

Retail businesses have been fighting against tough economic conditions in recent years. From the continuing fallout of Covid-19 to the ongoing cost of living crisis, skyrocketing energy bills to increasing wage demands, bricks and mortar stores and e-commerce organisations alike have been feeling the impact of strained purse strings.

As many as 30% of online orders result in returns, according to the logistics experts at Whistl. This can, understandably, leave you feeling insecure in your sales forecasts, as it becomes nigh on impossible to manage cashflow and stock levels effectively – especially because, according to a consumer survey by ReBound, almost two thirds (63%) of today’s customers expect a 30-day return policy. 

And pressure on cashflow isn’t the only downside to returned or excess stock. Given that the vast majority of this inventory can’t be resold, it also acts as a huge contributor to commercial waste. In fact, the US alone creates more than 35 million tons of plastic waste per year, according to the EPA.

Thankfully, retail stores aren’t powerless when it comes to excess stock. There is a solution.

Bidding farewell to excess stock

Every retail business has to deal with excess or returned stock. But rather than letting these items gather dust on a shelf, it is possible to turn them into substantial profits, with the help of Artisio’s auction management software.

Rather than subjecting returned items to landfill or the sales rack, an auction model allows this stock to be the star of a bidding war. Not only does this give customers the chance to compete for a sought-after item, but items offered via an auction platform also benefit from a +40% uplift in sale value.

Online auctions promote a circular economy model, benefiting both retailers and consumers. The popularity of reused, or vintage, items can’t be overstated — the global second-hand marketplace is worth upwards of $60 billion, after all — and a lot of this has to do with sustainability. 

In a society increasingly concerned about our environmental impact, shopping second-hand has gained popularity for preventing waste disposal, reducing carbon footprints, and cutting contributions to landfill. 

Artisio: bringing auctions to the retail landscape

Artisio is revolutionising the way auction houses operate. From marketing and communications to financial planning and inventory management, Artisio has supported the digital transformation of auction houses around the world.

But auction houses aren’t the only ones to benefit from Artisio’s software. Retailers are also discovering new, creative revenue streams with efficient and easy to run auction tools, including clothing brands, whisky stores, and more.

With both financial and sustainable benefits, retail auctions give businesses the freedom to stop relying on discount sales or promotions in order to shift excess stock.

How does Artisio work?

Richpanel reports that electronic stores suffer from the highest returns rate – a whopping 8.28%. To make matters worse, gadgets are often returned in near mint, still useable condition, but still can’t be resold at full price.

Rather than relying on heavy promotions or outlets, Artisio’s auction management software and online bidding solution enables retailers suffering from these kinds of high return rates to run an auction on their website, shining a light on these excess products.

All over the world, businesses are taking advantage of what Artisio has to offer. New Zealand’s premier supplier of Single Malt Scotch Whisky, Whisky Galore, in one such example. With both physical and an online store, they regularly turn a profit from excess stock using online auctions.

Explore Artisio’s auction management software today

Artisio is a sustainable, profitable solution for retail businesses, regardless of size or industry. Their 360-degree approach to automated auctioneering management makes it simple and rewarding to run your own online auctions. From payment and invoicing to listing and settlements, you can navigate all factors of your retail auctions in one, secure place.

With Artisio on your side, your excess inventory will soon be going, going, gone.

Discover more about how Artisio can support your retail organisation by booking a demo today.

 

Explore more on the Artisio website: https://www.artisio.co/

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