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Genco plans a b2b auction site for disposal of returned goods
Genco Distribution System is preparing to launch a b2b auction site to dispose of returned merchandise, Pete Rector, senior vice president, tells internetretailer.com. Genco handles as many as 200 truckloads of returned items a day.
Genco Distribution System is preparing to launch a b2b auction site to dispose of returned merchandise, Pete Rector, senior vice president, tells internetretailer.com.
Genco, one of the largest handlers of retailers’ returned merchandise, six months ago began offering select items in b2c auctions at eBay, Amazon and Yahoo. Its positive experience in those auction venues encouraged it to explore offering b2b auctions of large lots, Rector says. Genco expects the auctions will increase the price it gets for the merchandise. Today, returned goods that are sold in the secondary market get only 15% to 25% of the original cost of the item. Genco earns a commission on the value it recovers on each item.
Genco has a partnership with Slingshot Solutions, developer of auction management software, to manage the auctions. Slingshot’s software determines optimal price points, lengths of time for auctions and performs competitive analysis of other items for sale at auction sites.
Genco expects to have its auction site available in January with as many as 2,000 registered buyers. Those buyers will have to agree to such terms as restricting the markets where they sell goods, removing identifying labels or removing serial numbers.
Rector says the site will have hundreds of thousands of products for sale. Genco handles as many as 200 truckloads of returned items a day and its largest distribution center processes as many as 28 million items a year.
For starters, Rector expects Genco will sell at auction 15% to 20% of the merchandise it handles.