According to e-commerce specialist Priscilla Pispisa, there is a number of ways in which retailers can make the most of their end-of-line stock – including online marketplaces. However, there are many factors wary retailers should bear in mind when trying to maximise the potential of this channel …
End of lines can choke a retail operation. Products have to be stored, tracked on a monthly basis, and protected, just as like the rest of your furniture inventory. However, if they’re not making you any money, there’s no point in keeping those old armchairs, coffee tables and bookcases hanging around unnecessarily.
The furniture trade is a fast-moving beast – tastes change and styles evolve – meaning it’s important to turn around goods as quickly as possible.
So, what can retail professionals in the interiors sector do to identify, manage and reduce the risks and overheads of unsold stock? In order to ensure that supply chains maintain their value from beginning to end, it’s certainly worthwhile considering online marketplaces.
“The majority of sellers on eBay are businesses selling to consumers, as opposed to consumers selling to other consumers. Indeed, over 65% of items are ‘buy it now’ products – not, as many would think, secondhand goods being sold via auctions”
There are many retailers out there that don’t think it’s for them. Fast-selling sites, such as eBay, Amazon and Play, have the potential to yield vast profits for sellers, so it’s important not to dismiss these channels outright.
It’s worthwhile pointing out that the majority of sellers on eBay are businesses selling to consumers, as opposed to consumers selling to other consumers. Indeed, over 65% of items are ‘buy it now’ products – not, as many would think, secondhand goods being sold via auctions. This means it’s a viable route for furniture retailers that have stock and don’t know what to do with it.
In terms of maximising your spending, it’s important to take the time to research the market, particularly with regards to pricing. You might think that online marketplaces mean you have to cut your costs – however, that’s not always the case. Look at the prices of similar goods and check you’re not underselling yourself, before taking the plunge.
Pictures go a long way in online marketplaces. You wouldn’t go into a furniture store and expect to part with your hard-earned cash if they displayed cut-outs of the goods on offer. People want to look, touch and feel, and it’s the same with online selling. Spend time investing in your photography – it will go a long way to boosting prices.
A question we often get asked is: how do you manage products and still maintain control of your brand? People think that if they start selling on eBay then they are somehow letting go, and that’s difficult for many retailers to do. However, it’s possible to create an online store front that can mimic not only the look and feel of a website, but also the company’s core values. This way, the essence of the brand can be retained and even enhanced. Selling through this channel means you’re adding another step on your sales journey, which is no bad thing in the current economic climate.
Online marketplaces can also help to dispel negative attitudes to unwanted goods. People using sites like eBay and Amazon will often have a product in mind before they go shopping. Indeed, a recent statistic has shown that 90% of sales come from direct searches, rather than browsing. In this respect, changing people’s minds about goods isn’t a priority. More focus should be placed on showing the products you have in the best possible light – clear shop fronts and compelling photography should be optimised to get your products in front of interested buyers.
Selling through marketplaces is a great way of freeing up capital to invest in future inventory and get more value from your existing goods. A key benefit is that it has a very low barrier to entry. If you were to open up a shop you would have to look into renting a property, getting it fit for business and employing new staff. However, you could have five products and still be able to open your own eBay store. Indeed, you only have to pay when you sell a product – which means upfront costs aren’t an issue.
If you’re using this method to get rid of end-of-line stock, it’s an easy mechanic for boosting your supply chain! For anyone who is looking to maximise their return on investment, online marketplaces are an attractive proposition. Simply do your research, enhance your shop front and invest in photography, and you could be on to a winner.
Priscilla Pispisa is listing team supervisor at Genie and the Geek, a leading e-commerce business which specialises in online marketplaces.
