eBay Offers Retailers Inventory Liquidation Services
By Steve Smith -- TWICE, 5/23/2005
Coronado, Calif. — Executives from eBay took advantage of the Professional Audio Dealer Association (PARA) Management Conference, held here earlier this month, to outline how this type of dealer can use the online service to sell more products.
Jamie Stark, CE category manager, and Karl Wiley, CE/photo categories director for eBay, outlined strategies on how independent CE retailers can sell products that have been accepted as trade-ins and “B-stock dispositions,” or returns and products from the retail sales floor, during their presentation at the Hotel del Coronado.
Outlining eBay's reach, Stark said that between consumer electronics, computer and camera categories, the online service brokers sales of $7.9 billion annually on a worldwide basis. The typical eBay consumer for these goods has over $100,000 in annual household income, is an early technology adopter, and still goes to brick-and-mortar CE stores for product too.
The trade-in strategy is designed to “attract more local customers into your stores,” Stark said, by giving consumers some type of credit for old merchandise that can be applied to a new product purchase by selling it on eBay. The price of the product can be determined by visiting Dealtree.com, which determines price quotes, pays the retailer for the product and handles the online bidding and sale.
“There is no fee for this service,” Stark said, adding, “Retailers can either offer the price quote as a straight trade-in or try to make a profit on it. Say a product is worth $800 — some retailers might want to give the consumer a $500 credit and keep the balance.”
The B-stock disposition plan is a way retailers can “optimize inventory, liquidate returns or demonstration units, or products that are about to be discontinued.” Stark said that eBay provides retailers with “trading assistants and 'PowerSellers'” to help sell excess inventory that must be moved quickly.
The Web site also provides an exclusive Seller OnRamp service, which is a free, phone-based personalized consulting service for setting up a retailer's business on eBay.
For more details on these services visit eBay on the Web or call (866) 304-EBAY.
