VCs Embracing Seasonality: Navigating Surplus Inventory With eCommerce Resellers

Understanding Seasonality

VCs Embracing Seasonality: Navigating Surplus Inventory With eCommerce Resellers

This year’s consumer spending landscape has been nothing short of extraordinary. With the specter of a looming recession and inflation fluctuations, shoppers are on the constant lookout for deals even before the holiday season kicks in, with some beginning their holiday shopping as early as July. The hunt for discounted gifts has led many consumers to turn to resellers to start stockpiling presents well in advance.

This evolving consumer behavior has presented a unique challenge for retailers and resellers trying to plan ahead. Seasonal inventory traditionally arrives in stores a few months before the actual holiday, but with early holiday shoppers, the timing has become more uncertain whether consumers will purchase seasonal inventory or hold off until deals arise. 

How can brands strategize their seasonal inventory to meet these shifting shopping patterns?

At Net Trade, we specialize in corporate trade and cash liquidation, providing businesses with solutions to transform unwanted assets into media or cash to maintain momentum. 

In this blog post, we’ll offer valuable insights and actionable advice to VC firms grappling with seasonal surplus inventory issues in their newly acquired eCommerce resellers.

Defining Seasonality in eCommerce:

Seasonality in eCommerce refers to the predictable fluctuations in customer demand and sales over the course of a year. This pattern is influenced by various factors, including holidays, weather changes, cultural events and even social trends. For instance, during the holiday season, sales of gifts and festive merchandise typically surge, while demand for summer-related products rises in warmer months.

The impact of seasonality is profound, particularly for eCommerce resellers, and it’s critical for venture capital (VC) firms investing in these businesses to navigate seasonal surplus inventory effectively. 

The ability to adapt and evolve with the changing tides of consumer spending ensures that VCs remain relevant and successful in an ever-evolving market. In times of rising prices, a recent survey by Wildfire revealed that 90% of respondents are more interested than ever in searching for deals, getting discounts and using coupons and earning cash-back rewards when shopping online.

As they leverage real-world data from retail sales forecasts and consumer spending news, VCs can confidently steer their investments toward the most promising ventures, creating a symbiotic relationship between demand and supply.

By proactively recognizing emerging patterns, VCs can strategize and plan ahead, effectively navigating the dynamic challenges that come with managing inventory. This foresight allows them to optimize their resellers’ performance, enhancing efficiency and profitability throughout their supply chains.

Seasonal Surplus Inventory

Identifying Seasonal Inventory:

In the fast-paced world of venture capitalism, staying informed about consumer spending news is not an option, it’s an absolute necessity. By closely monitoring retail sales forecasts and consumer spending trends, VCs gain invaluable insights into the ever-changing landscape of consumer demands. This keen awareness empowers them to make informed decisions and maintain a competitive edge.

VC firms should carefully analyze historical sales data to identify the products most affected by seasonality. Although this year may look different compared to others, VCs can get a rough estimate of what sales may look like and adjust accordingly. 

For example, imagine an eCommerce reseller specializing in outdoor sporting goods. Their sales of winter-related products like snowboards and ski equipment are likely to peak during the winter season and drop off during the warmer months, leading to potential surplus inventory.

By categorizing inventory into seasonal, non-seasonal and evergreen items, they can better understand which products are prone to surplus inventory during specific times of the year. 

Seasonal Surplus Inventory

Plan Ahead for Seasonal Demand:

In this age of transformative consumer spending, embracing creativity and foresight becomes the key to unlocking new opportunities. A Morning Consult survey showed 85% of U.S. respondents stated fluctuating inflation affected shopping habits, including habits such as shopping at discount retailers or online sellers, seeking deals for the best price on certain products and minimizing the amount of shopping trips to save costs.

VCs who are open to innovative ideas and trends can capitalize on the shifting preferences of consumers, positioning themselves as trendsetters rather than followers. This approach not only solidifies their market position but also fosters a dynamic and forward-thinking environment within their firms.

To avoid overstocking seasonal products, VC firms should work closely with their eCommerce resellers to create a well-thought-out demand forecasting strategy. Close communication amongst key stakeholders ensures everyone is on the same page and no one is blindsided by any seasonal road bumps. Historical sales data, market trends and insights from suppliers can be used to predict demand accurately for each season.

For example, based on previous years’ data, an eCommerce reseller can anticipate an increased demand for camping gear in the spring and summer months. By proactively stocking up on these items and adjusting inventory levels throughout the year, they can optimize sales and avoid costly surplus.

Implement Dynamic Pricing and Diversify Product Offerings:

VC firms can guide their eCommerce resellers to implement dynamic pricing strategies. Consumers are more likely to purchase from online sellers if they are offered deals on highly popular products, can earn rewards for shopping with the seller or use coupons or discount codes. Monitor your competition and see how they are handling their seasonal inventory and promotions. If certain products are going to be out of season, consider discounting those products to attract deal-seekers. 

For example, during peak winter months, the same outdoor sporting goods reseller can offer discounts on winter products like ski equipment to boost sales and clear out excess inventory before the season ends. This type of dynamic pricing would work best in the spring and summer seasons when snow is out of sight and consumers are looking for deals on holiday gifts.

By adjusting product prices in response to changes in demand and market conditions, resellers can encourage sales of seasonal items and prevent them from becoming surplus inventory.

Beyond seasonal products, resellers should keep stock of evergreen inventory that can be purchased and used at all times of the year. Encourage eCommerce resellers to diversify their product offerings to include evergreen items that maintain consistent demand throughout the year. This strategy can help offset potential losses from seasonal surplus and create a stable revenue stream.

In another example, an eCommerce reseller specializing in fashion accessories can complement their seasonal product line with evergreen items like handbags and sunglasses, ensuring continuous sales even during slower seasons.

As early holiday shoppers continue to seek deals and discounts, VC firms investing in eCommerce resellers must navigate seasonal surplus inventory effectively. In this dynamic landscape, staying informed, adapting and planning ahead are crucial for VC firms and their eCommerce resellers to thrive and succeed in an ever-changing market. With valuable insights and actionable advice, VC firms can effectively navigate seasonal surplus inventory issues and position themselves as industry leaders in this ever-evolving market.

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