If e-commerce companies want to do a good job in procurement, finding the source of goods is the key. Contracting brand backlog inventory is also a channel for e-commerce companies to find sources of goods. Some brands will sell their backlog inventory at a lower price, and e-commerce companies can use this as a breakthrough to find suitable sources of goods. Moreover, brand products have a high degree of recognition in the minds of buyers, so contracting brand backlog inventory is a way for e-commerce companies to make profits. For e-commerce companies, using brand backlog inventory as a source of goods has the following three advantages.
(1) Relatively low price
Because it is brand backlog inventory, the purchase price is usually not too high. Of course, the specific price also depends on the negotiation ability of the e-commerce company. Proper communication can save a lot of purchase money.
(2) Rich product styles
The brand has many product styles and many single hot products, but some may be outdated and cause inventory backlog. If e-commerce companies establish a stable brand backlog inventory procurement channel, they can solve the supply problem well.
(3) Attracting specific buyers
Some buyers will specifically search for the backlog of their favorite brands on e-commerce platforms in order to purchase the products at a low price, regardless of whether the products are popular.
However, there are limitations to contracting brand backlogs. The most important issue is the sales of the products. If the brand backlog is large and the e-commerce company has limited capacity, it may not be able to complete the sales in a short period of time. In addition, e-commerce companies must also consider financial risks and avoid losses.
Brand backlogs are mostly outdated or defective products. If e-commerce companies do not manage properly, it is easy to turn brand backlogs into their own backlogs. To address this issue, e-commerce companies must have a comprehensive plan. For example, what kind of brand backlog can be used as a source of goods? If the packaging of the brand backlog is damaged, old and deformed, the e-commerce company will have to repackage it itself, which will also increase some costs.
Tips
Using brand backlogs as a source of goods has both advantages and risks. E-commerce companies should make reasonable plans based on their own conditions and improve their purchasing systems and marketing plans.