Liquidation Predictions for Q1 2023: What Buyers Should Know

According to the National Retail Federation, American consumers $171 billion worth of goods is expected to be returnedwith total annual returns accounting for $816 billion in lost sales for retailers.

This presents an opportunity for business buyers looking for inventory in the New Year! Retailers are more inclined to liquidate post-season merchandise with expanded (and fairly flexible) return policies. The time and expense involved in checking returns, repackaging, and restocking items is simply too much when dealing with the ever-increasing volume of returns.

B-Stock works with 9 of the top 10 retailers in the US and several of the world’s largest international retailers for excess and customer returned inventory. And if you look at the numbers, you’ll see that there are some trends across the major product categories. Additionally, we surveyed B-stock buyers to learn how the 2022 holiday season was looking for them and what that could mean for the first quarter of 2023.

The central theses:

• It’s time to return after the holidays. Used – Goods in good condition are worth twice as much as new or brand new goods in Q4 and Q1 each year.
• Q1 data shows higher retail value in key product categories such as apparel, health and beauty, and consumer electronics.
• Approximately 50% of shoppers surveyed said electronics were the most sought-after by their customers this holiday season.
• Shipping costs have had a “significant negative impact” on nearly half of the shoppers surveyed (47.76%).

Forecasts for the first quarter of 2023

As the year kicks off, we’re sharing B-Stock data to help buyers make the best liquidation buys. Here’s what we observed:

• Christmas gifts turn into plentiful returns

Christmas gifts are returned left and right at the beginning of the year. According to B-Stock data, the percentage of customer returns inventories has risen sharply by about 20% every January for the past four years.

Not only that but used-good The condition of the goods in Q4 and Q1 is twice that of new or brand new goods every year. Items are returned to stores for various reasons such as: B. because of wrong color or size. For B-stock, used stock in good condition is defined as: Merchandise with signs of wear from handling and/or customer contact that can be sold without repairs being required.

Check out these 8 Retail Stores You Should Buy Returns From.

• More bidders, more demand

We see 10% more bidders in the following categories: consumer electronics, mobile phones, and health and beauty in the first quarter than in the fourth quarter. This is a good indicator of what’s in demand after the holidays and for the rest of the quarter!

When surveyed, our buyers indicated that electronics is one of their most sought-after categories. So it’s worth noting that Q1 saw 25% more consumer electronics auctions than other quarters of the year! If you are interested in the consumer electronics secondary market, Q1 is the time to shop.

Browse electronics auctions

• Inventory increase in key categories

“Retail Value” is a key factor that buyers look for when choosing between auctions. It’s the value of the goods – and of course the condition – that will determine how much you can resell liquidation inventory for. Buyers can expect more inventory (or more retail value) in the first quarter in three main categories:

• clothing has 20.3% more inventories than other quarters of the year.
• health and beauty has 36% more inventory than other quarters of the year.
• consumer electronics has 35.2% more inventories than other quarters of the year.

• Mobile and sport and outdoor are heavyweights

On Supply US & EU, fourth-quarter mobile auctions typically have more expensive items (or retail prices per unit) — about 29% higher than other quarters of the year. This is good insight to keep in mind as mobile auctions have smaller lot sizes which can lower your shipping costs.

January and February are also good times to visit sports and outdoors. These auctions usually have more expensive items after the holiday season. On average, the retail value of the product is 39% higher than other quarters of the year and 55% higher than November and December. Perfect for shoppers who pay attention to health at the beginning of the year! Look for sports and outdoor auctions!

• Now is the time to shop off-season

As retailers try to liquidate seasonal merchandise to free up storage space, buyers can bid on bulk pallets of merchandise for pennies on the dollar. Buying early allows you to increase your savings and be prepared to offer that stock early as the next season approaches. More importantly, closer to the original retail price tags.

For example: You can source a truckload of summer inventory like patio sets, inflatable toys, and warm-weather clothing in the winter to sell in the spring and summer. Look for summer inventory now.

Reseller’s Recap of Holidays 2022: What it means for 2023

High-level category data only tells part of the story. That’s why we also surveyed over 100 B-stock buyers to delve deeper into the 2022 holiday season. These business buyers share insights into their sales, promotions, and observed consumer behavior.

Sales and consumer behavior trends

Have you noticed any changes in the behavior of your customers in view of persistently high inflation rates?

With persistently high inflation in 2022, there were legitimate concerns about consumer spending decisions. Just over 38% of survey respondents responded that inflation is having a “slightly negative impact” on customer behavior.

What are your expectations for the holiday season in terms of your company’s sales?

• 30.83% of respondents expected a “moderate decrease” in terms of sales, while 21.80% answered “moderate increase”.
• 6.77% and 14.29% expected a “significant increase” and “significant decrease” respectively.
• The remaining 26% answered “about the same as last year”.

What items are your customers looking for this time of year? (Select all that apply)

• Electronics – 50.78%
• Home & Garden and Clothing, Shoes and Accessories – 36.72%
• Furniture – 26.56%

Clothing, shoes, accessories – 36.72%

advertising trends

The holidays are a popular time for businesses to run promotions. We asked survey respondents if they run promotions during the holiday season, and more than half (56.72%) answered yes.

Of those respondents who answered yes, the top methods they used to promote their business were:

• Organic social media: Facebook – 64.29%
• Paid online advertising – 62.86%
• Word of mouth – 60%
• Organic Social Media: Instagram – 30%

What kind of promotional incentives do you actively run?

• Buy one, get one XX% discount – 45.90%
• Vouchers – 44.26%
• Loyalty program rewards – 27.87%
• Giveaway or Sweepstakes – 22.95%
• Buy One, Get One Free – 14.75%

Do you buy out of season merchandise in advance and resell later when items are in season?

Just over 61% of respondents answered “Sometimes” while 15.50% answered “Mostly”.

Resellers who purchase inventory off-season – and resell merchandise later – get incredible deals. Much like at the end of summer, a consumer will see discounts on items like swimsuits and beach gear. What remains is liquidated. The problem for some resellers is holding stock for so long – tying up capital and storage space.

Buy online recycling auctions on second-hand goods

As Q1 unfolds, resellers will want to keep the holiday momentum going! These insights can be used as a guide for upcoming purchasing decisions. With hundreds of auctions closing each week, liquidation buyers can find the inventory they need for their B-stock business needs. Start browsing auctions today!

*Based on a survey of B-stock buyers. N=134.