Excess Inventory

Written by Seth Cotterell
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Excess inventory represents a problem for many small businesses. It looks bad on the books and the cost of carrying excess inventory can put a strain on companies that are already struggling. When the time comes to unload excess inventory, there are a few options at your disposal; the process is remarkably easy and can earn your business some much needed extra money.

Finding an Excess Inventory Buyer

First things first; you’ll need to find a buyer of excess inventory to take your obsolete electronic parts off your hands and off your books. The Internet is the perfect place to locate an excess inventory buyer. Most buyers do not operate a traditional store or maintain a showroom. Because their customers and clients are located all over the globe, most excess inventory buyers are primarily web-based with small sales teams that specialize in resale of electronic parts.

When a buyer is found, there are two options you can choose from to unload your excess inventory. The first is fairly straight forward and easy to understand. The inventory buyer simply catalogs all your inventory items and makes a bid on any and all that have value. They will simply place a bid on all circuits, processors, military surplus, connectors, diodes, or whatever components you are keeping in your inventory. The buyer will then resell the inventory and keep the profits. This is called a lot bid.

The second option is called a consignment sale. This is more of a partnership between you and the buyer. The buyer takes your inventory, catalogs it, then its sales people sell it to a new buyer. The buyer holds your inventory and sells it for you and makes a small fee for the effort. This usually takes a little longer than a lot bid and is better for companies that are not in such a hurry to get rid of their inventory.

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