As COVID-19 continues to escalate and impression companies world wide, we needed to share the newest developments B-Inventory is seeing within the reverse logistics area and within the secondary market particularly. Our visibility into the most important retailers and producers within the U.S., Canada, and Europe is offering distinctive insights into how provide chains are managing via this quickly evolving panorama. We’re monitoring the state of affairs intently, and can proceed to share observations and insights with our companions regularly.

Emergent Reverse Logistics Tendencies

Retail and Warehouse Operations

We now have seen an increase in reverse facility closures in some provide chains. Throughout retail, there have been momentary, chain-wide suspensions and facility closures. Some areas have been impacted resulting from numerous states and municipalities ordering companies and buildings to be closed (or momentary closures resulting from a constructive case for an worker). That is leading to reverse stock being held inside and outdoors of services and never being processed.


Labor constraints are placing a pressure on reverse operations as properly. Labor shortages resulting from child-care wants or sickness are impacting some facility efficiency, and moreover, some retailers are shifting reverse logistics personnel to accommodate heavily-burdened ahead operations.

Facility closures and labor shortages stress the opposite nodes of retailer reverse networks, creating sporadic spikes in secondary market provide in numerous areas. We expect this pattern to extend and arrive in waves, with services coming off and on-line as totally different geographic areas run via the development of the virus.

Emergent Secondary Market Tendencies

The secondary market is responding in actual time to the altering panorama. Provide is being impacted by disruptions to stock processing, whereas demand is evolving resulting from a mix of surging curiosity in some classes and different components. Having a broadly distributed purchaser base is proving to be advantageous. Total, there may be nonetheless loads of demand within the secondary market, with some shifting of that demand amongst classes—a few of that are proving to be extra resilient than others. The next are our insights, damaged down by provide and demand:

Provide: Stock Processing Disruptions

  • Some retailers counting on direct contracts with a handful of native patrons are experiencing delays and storage points, as some patrons aren’t capable of choose up stock and resell rapidly sufficient at scale (particularly for native patrons working low cost stores).
  • Transportation demand is tightening and is concentrated on the ahead chain, leading to slower liquidation stock pickup and elevated costs. Based on DAT ( the load-to-truck ratio has elevated from 1.87 for week ending February 23rd to three.15 for the week ending March 20; a 168% improve.
  • Some retailers are introducing new types to the sorting course of, permitting sure lessons of things to be resold via conventional retail channels. These embrace objects corresponding to cleansing provides and non-perishable grocery objects.
  • As some retailers quickly change their retail product combine, stock that might usually be within the retail move is being moved to liquidation. As such, there’ll seemingly be a better provide of non-core overstock merchandise launched into the secondary market.

Demand: Liquidity Strains

  • We’re seeing general secondary market liquidity being impacted by the identical transportation and labor challenges affecting provide. Some liquidation patrons that primarily resell items utilizing regional brick and mortar shops are unable to simply accept new incoming stock.

B-Inventory Community Demand

  • Total, B-Inventory’s demand continues to be sturdy and comparatively unchanged from earlier weeks. We aren’t seeing dramatic swings in pricing but, however some classes are beginning to be impacted. Classes exhibiting strongly elevated demand embrace family items, groceries, toys and {hardware}.
  • A number of the metrics we intently comply with embrace the variety of bids and bidders competing for stock. Participation amongst bidders continues to be sturdy throughout totally different geographies and purchaser varieties, once more with some minor shifts between classes.

How B-Inventory is Serving to

B-Inventory might help by offering:

  • Constant liquidity with entry to a big and distributed purchaser base. Because the market continues to shift, we’re seeing vital advantages from having a big and dispersed purchaser base, as this considerably reduces the danger of disruption to your liquidation enterprise. The varied pool of patrons is appearing as a shock absorber within the present setting, the place any single purchaser could be shut down instantly. It’s best to cut back reliance on a small variety of patrons.
  • Market mannequin ends in true market worth of stock. It’s exhausting to foretell the place your product will probably be valued most extremely within the present setting, however a dynamically priced, geographically dispersed market can guarantee the correct distribution of these items.
  • Information/Insights to Restoration & Class Tendencies. We’re monitoring the market intently to identify class developments and can talk with you usually if we consider any particular motion is warranted.
  • Versatile secondary market logistics options that:
    • Assure velocity
    • Cut back the burden on services
    • Re-position stock the place wanted
    • Present value-added sorting or manifesting
    • Organize overflow/ surge transportation & warehouse capability

Obtainable Options for Extra Velocity and Liquidity:

  • Drop Trailers – Extra drop trailers could be delivered to services to be loaded and saved on the yard as they undergo the public sale cycle to make sure liquidity
  • Cross-Dock Amenities – Quick-term, versatile areas close to sellers to additional course of/type stock into most fascinating tons
  • Ahead Switch & Storage – Elimination of stock instantly from probably affected warehouses to be liquidated at your request.
  • B-Inventory Provide for Non-Conventional Stock – Leverage the sturdy demand in our multi-seller market to rapidly transfer non-core stock.

We hope you discovered this replace useful throughout these altering instances. B-Inventory will proceed to replace our companions weekly with the newest data we have now concerning the impression of Covid-19 on secondary markets.

The submit B-Inventory Options COVID-19 – Secondary Market Insights appeared first on B-Inventory Options.


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