Here’s how you can turn returned or excess inventory into a profit with online auctions
Reduce waste and increase profitability by running your own auctions with the help of Artisio auction management software.
Between high street closures, the impact of the Covid-19 pandemic, and the ongoing cost of living crisis, we know it’s a tough time to be a retail business. Whether your bread and butter is bricks and mortar or you’re all about e-commerce, there are many challenges to navigate right now.
According to UK logistics giant Whistl, as many as 30% of online orders now result in returns – the kind of statistic that can set alarm bells ringing for retail businesses trying to manage cashflow and monitor stock levels. Given that most of today’s customers expect a 30-day return policy – 63% to be precise, according to a consumer survey by ReBound – this can make it difficult to feel secure in your retail profits.
Of course, returned or excess stock that can’t be resold as new isn’t just a drain on capital, It’s also a big contributor to commercial waste. In the US alone, it’s now estimated that upwards of 35 million tons of plastic waste alone is generated per year, according to the EPA.
So, what’s the solution?
Auctioning excess stock: going, going, gone
Returned and excess inventory are a normal part of any retail business. But with the help of Artisio’s auction management software retail businesses can turn these extra items into meaningful profits. Using an auction model, returned, excess or liquidated items don’t need to be sent to landfill or destined for the promotional rack; they can become the objects of bidding wars. Items offered via a competitive auction platform benefit from the +40% uplift in sale value.
Auctioning off stock is also a great way of returning your assets back into the circular economy for a second chance to find an owner. The global secondhand marketplace is worth in the region of $60bn. Outside of the economics, preventing excess waste from disposal and providing it with a new home, reduces you carbon footprint and contributions to landfill.
Artisio: the perfect match for retailers
Artisio is an auction management platform that has helped auction houses to revolutionise their business models in recent years. From inventory management and financial planning to marketing and communications, auction houses around the world have completed their digital transformations with the help of Artisio.
But it’s not just traditional auction businesses Artisio works with. They have helped retailers like electronics stores, clothing brands and even whisky stores, create new revenue streams with efficient and easy to run auction tools.
From both a financial and sustainability perspective, auctions can be a great option for clearing out returned stock. With Artisio’s support, retailers are able to run their own auctions through their websites, instead of relying on promotions or discounted stock.
Better yet, it takes less than an hour to get started.
How it works
Consider a typical electronics store which, according to Richpanel, has the highest returns rate of any industry (8.28% compared to health and wellness, the second highest industry at 4.2%). Gadgets are often returned in near mint condition, meaning they are still useable, but can’t be sold at full price.
These items are often sold through heavy promotions or outlet lines. But Artisio’s auction management software and the online bidding solution enables an electronics retailer to run an auction on their website, putting these excess products to good use.
Businesses around the world are benefiting from Artisio’s auction software, including New Zealand’s Whisky Galore. As the country’s premier supplier of Single Malt Scotch whisky with both an online and physical stores, they have found great success running regular online auctions.
Discover Artisio’s auction management software for yourself
Boasting a 360-degree approach to automated auctioneering management, Artisio is a sustainable solution for retail businesses of any size or industry looking to run auctions on their own websites. With Artisio on your side, you can navigate all factors of your retail auctions – including payment, invoicing, and settlements – all in one, secure place.
Find out more about how Artisio can support your retail business today by booking a demo.