The trade with overstock or returns is currently experiencing a real boom. A topic that used to be associated with discounters and euro shops has now reached a new audience through clever business ideas and trendy portals of young founders. Consumers not only benefit from lower prices, compared to products fresh from the factory. They are also increasingly looking for products that counteract the “throwaway society” and support sustainability, as recent surveys show. The new market situation also creates new challenges for entrepreneurs in this area. Specialized B2B auction platforms for the sale of overstock and returns open-up new possibilities for finding and buying goods. We are summarizing the criteria buyers should consider when choosing a platform.
Business high-flyer thanks to overstock trade? There are more and more successful examples based on this business approach, some of which have already been presented as an alternative to the investor-driven approach a la “Lions’ Den”. Because trading in returns, overstock, and special items enables entrepreneurs to build a successful business without the need for large start-up capital. The business model is also right on-trend. The market and opinion research institute YouGov recently reported that almost 20 million Germans say they prefer to buy second-hand rather than new. What began as a movement against “fast fashion” in the textile industry has meanwhile reached many other market segments. B-goods such as furniture, household, or electronic equipment enable very good profit margins for dealers as well as attractive (price)advantages for consumers.
In the past, special items and overstock trading were mainly about price and number of items, but today the product itself is becoming more and more important. The demand for quality products and brand names is increasing, and the stronger competitive situation poses new challenges for both established and new buyers.
“The growing re-commerce market leads to greater competition and smaller margins, which have triggered a change in the shopping behavior of traders,” explains Sara de Haan, Business Innovation Manager at BuyBay. “Traders are looking for access to larger sellers and buyers markets than they currently have in their ‘off-line’ professional networks. That explains the rise of online B2B auction platforms.”