Ritz Interactive finds eBay auctions key to liquidating products
Ritz Interactive Inc., which sells cameras, boating supplies and other products through 14 web sites, has found that liquidating overstock items most efficiently requires a multi-channel strategy. “For some products, it’s more effective for us to sell through auctions,” says Andre Brysha, vice president and chief marketing officer.
Brysha says that even though selling overstock products through eBay carries some overhead-– mainly fees it pays to eBay and to ChannelAdvisor Corp. for technology to integrate Ritz’s platform with eBay’s and to manage the auction–-it’s still more efficient to sell some items through eBay auctions than through outlet stores operated by Ritz Camera Centers Inc. Ritz Interactive, though an independent company, operates through a strategic partnership with Ritz Camera Centers, which owns and operates more than 1,200 Ritz stores and 110 Boater’s World Marine Centers in the U.S.
He adds that the larger audience Ritz Interactive can reach on eBay often enables it to get higher prices in eBay auctions for higher-end products, and that eBay is particularly efficient at selling small allotments of goods. The cost of shipping small allotments to outlet stores can result in lower margins, he notes.
“You can sell anything on eBay if you have the right price,” Brysha says. Ritz Interactive currently auctions products only through eBay, though it has tried other auction web sites.
Still, effectively selling overstock items in large quantities and at the best prices overall requires a multi-channel strategy, he says. To get the best prices and margins on the largest number of products, he adds, Ritz Interactive will continue to use both outlet stores and auctions.
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