All companies need to derive maximum value from the supply chain. Obviously, the greatest value is gained at the original point of sale. But once the merchandise season has passed, a remarketing solution can help turn a cost center of merchandise disposition to a profit center by selling leftover merchandise in volume to secondary markets. And, it can be done in a way that maintains brand standards.
The most efficient way to optimize value is to a have a remarketing strategy prior to the end of a seasonal sales cycle. Getting to the marketplace early, protecting your brand and creating a plan are remarketing strategies that will ultimately improve your bottom line.
When dealing with seasonal product, buyers typically pay for product in advance of shipping. In addition, they are responsible for all transportation, product handling, repackaging (where necessary) and storage cost before selling the first unit. These factors impact recovery as a percent of cost or retail.
Companies often look at Gross Merchandise Value (GMV) to determine the success of a sales cycle – often looked at quarterly or annually and compared to prior year’s performances. GMV looks at the value of merchandise sold prior to deduction of fees and expenses. For retailers, this measure is used to quantify their business growth.
Companies sometimes forego the immediate financial benefits of remarketing, due to concern that selling in the secondary market can weaken their brand. However, remarketing options, such as specifying the regions/countries in which the product can be sold, delabeling or relabeling and harvesting parts provide options that increase GMV while considering corporate brand policies.
The use of an intelligent remarketing strategy can increase GMV because it averages in the recoupment of costs and the fees associated with selling the merchandise. In 2011, Inmar sold approximately $76 million in remarketed merchandise for clients. These numbers added to their bottom lines and helped strengthen comparative numbers against previous year’s data.