Got Excess Stock? | Why you shouldn't sell it on online auction sites

If you get left with excess stock, chances are you will want to sell it as quickly as possible and get as much cash as you can in return. By selling your excess stock, you will be able to release the money that is tied up in it and start thinking about new investments. There are several different options for selling overstock. One popular option is using an online auction website. Be cautious - while this may seem like a great solution at first glance, there are some substantial drawbacks to using these services and you should take them into account before deciding how to proceed.

Excess Stock Sales on Online Auction Sites Attract High Fees

The most common deterrent for potential vendors is the fees that online auction sites charge for listing your items. In return for connecting you with an audience of potential customers, they charge a large commission on each item sold. On top of this, they may also charge sellers an insertion fee. Essentially, this is a fee that you pay for every product you list on the website. The most important thing to remember about this fee is that it is payable whether your items sell or not. As a result, if your products do not get snapped up the first time around, you could end up paying more than once. The insertion fee varies with different types of auctions and products.

Insertion Fees and Commission Rates

• Insertion Fees: Payable for each product listed, regardless of sale.
• Commission Rates: Charged on each item sold, reducing your profit margin.

Online Auction Sites Have Strong Competition for Excess Stock

Aside from the standard fees, if you want to sell wholesale stock on online auction sites, you may also run up against the problem of extreme competition. The best part about selling on auction sites is that you can reach customers around the world; the worst part is that you are up against fellow vendors from a similarly enormous user base. It is common to see goods being sold for just pennies in profit. When it comes to online auctions, the supply tends to be greater than the demand.

High Competition and Lower Profits

• Global Reach: Access to customers worldwide.
• High Competition: Competing with numerous vendors, often leading to minimal profits.

You Can Put a Reserve Price on Your Surplus Stock

In order to safeguard your cash return on wholesale stock, online auction sites do allow vendors to add a reserve price to their listings. This means that you can state the minimum price at which you will sell your products. Be warned though, there is a further fee for this service and you will still be liable to pay the insertion fee should your product fail to sell in the highly competitive marketplace.

Reserve Price Costs

• Reserve Price Fee: Additional cost to set a minimum sale price.
• Insertion Fee Liability: Payable even if the product does not sell.

Be Careful: Online Auction Sites Will Publicize Your Excess Stock!

Another common problem for excess stock sellers is the highly public nature of auction sites. Be warned that these listings can and do appear in Google searches, and this has been known to cause problems for existing business relationships. Overall, selling your excess stock through an online auction site can work well, but you need to be sure that you are prepared to put in the time and effort to research the market and understand the fees involved. You also need to be aware that potential buyers often have a lot of questions and are likely to contact you requesting details of your products. Again, this is usually fairly straightforward to deal with but can be time-consuming.

Public Listings and Business Relationships

• Public Exposure: Listings can appear in Google searches.
• Business Impact: Potential issues with existing relationships.

Sell Excess Stock Fast Using Our Service

If you have tried everything and still cannot sell your excess stock, then it is probably a good idea to get in touch with us. We have been buying and selling surplus stock for over 21 years from our Sydney warehouse. Sometimes we can buy your excess inventory straight away on the same day, and sometimes it takes a bit longer. It depends on what type of excess inventory you have and the current state of the market. If you have excess stock, get in touch with us for a free consultation and we will give you a report on the state of the market. Call us on +61-2-9893 1899 or email to john@coorey.com to let us know more about your excess inventory.

Benefits of Our Service

• Expertise: Over 21 years of experience in buying and selling surplus stock.
• Quick Turnaround: Potential to buy your excess inventory on the same day.
• Market Analysis: Free consultation and market report.

FAQs

What are the main fees associated with selling excess stock on online auction sites? The main fees include insertion fees, which are charged per listed item, and commission rates, which are a percentage of the sale price.

How does competition affect selling excess stock on online auction sites? High competition on these platforms often results in lower profit margins, as many vendors are selling similar items, sometimes at very low prices.

Can I set a minimum price for my items on online auction sites? Yes, you can set a reserve price, but this comes with an additional fee. If your item doesn't sell, you still pay the insertion fee.

Why might selling excess stock on online auction sites impact my business relationships? Listings on auction sites can appear in Google searches, which might expose your stock levels and selling prices to competitors and customers, potentially affecting your business relationships.

What alternative is there to selling excess stock on online auction sites? You can use specialized services like ours, where we offer to buy your surplus stock directly, often with a quick turnaround and without the complications of auction site fees and competition.

How can I contact you for selling my excess stock? You can call us at 0411 055 987 or email john@coorey.com for a free consultation and more information on how we can help with your excess inventory.

Conclusion

While online auction sites might seem like an attractive option for selling excess stock, the associated fees, intense competition, and public nature of listings can pose significant drawbacks. Considering alternative methods, such as using a specialized service, can save time, reduce hassle, and often result in a better return on your surplus inventory. Contact us today to explore how we can assist you in efficiently managing your excess stock.