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Benefits of Inventory Sales

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By FashionUnited

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Fashion

The phenomenon of inventory sales has gained significance due to the increasing pace of the fashion industry and the demand for fast fashion. Consumers expect stores to press the refresh-button as often as every two weeks on their merchandise and to have all the new pieces in stock – available right there and then. Such a demand calls for the production in high volumes, which cannot be estimated with certainty at all times. As a result, stores are often over-stocked and need to turn those leftovers into conversion. Therefore, outlets and discounters like TK MAXX cater to the demand of inventory sales and even players such as eBay have claimed this opportunity for themselves.

By definition, inventory sales are any merchandise a brand has in stock that has been purposefully produced but that has not reached a buyer yet. This of course mainly concerns companies that do not manufacture vertically, being the majority.

Whilst inventory sales have been connoted negatively due to the lesser value they score sales wise if they have not been sold in season, the advantages of inventory sales are easily overseen.

First and foremost inventory sales entail that a retailer can be supplied with merchandise immediately, therefore he can react spontaneously to sudden changes in consumer behaviour. An order of inventory is conclusively not only flexible, but also placed with high certainty as it is intended to serve a short-term demand. This increases retailers’ success-chances in sales.

Furthermore, as retailers can place orders at any time (mid-season), they make the decision on volume and type of merchandise with the knowledge of what has worked so far in the particular season. Through that advanced information, retailers have a competitive edge towards other retailers who solely ordered pre-season.

Additionally, purchases through out the season improve the cash flow, as the frequency of orders increases and the payment for the total season is divided up, therefor reducing the pre-seasonal expenses that generally have to be balanced several months in advance to the actual disposal in store.

Another aspect is the wholesale price: As the season progresses, brands reduce the product price of their inventory and offer retailers attractive prices.

In terms of sales, even high-end retailers can profit from offering certain products at reduced prices towards the end of the season as this extends their target audience and attracts new customers who generally purchase in a lower price-range.

Taking these advantages into consideration, the new wholesale marketplace Buying Show offers fashion brands, which supply retailers with inventory sales. Thereby, buyers profit from the efficient service of placing orders flexibly at any time, conveniently online, and also at the best possible rate due to the transparency an online platform delivers with an overview of the market.

This concept constitutes a win-win-situation for supply and demand, enabling brands to showcase their inventory on the one hand and retailers to stock-up on merchandise on the other.

Inventory Sales
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