According to a report from the International Council of Shopping Centers, same-store sales at retail chains plunged 0.9 percent in October, the steepest such drop in nearly 40 years. But what the current economic crunch means for ecommerce is less clear.
AuctionBytes spoke to Cayce Roy to see what could be gleamed from recent activity in the overstock liquidation market and to see if he had any advice for online sellers. Cayce is President of Liquidation.com, online auction marketplace for wholesale surplus and salvage assets, and was formerly a vice president at Amazon.com where he most recently focused on providing ecommerce, marketplace, fulfillment, and technology solutions to Fortune 1000 and small business customers.
Cayce said that underlying demand for consumer goods does not change as much as the change in buying patterns in the types of items consumers purchase. In more difficult times, consumers tend to put-off or avoid larger purchases (cars, large appliances, etc.) or decide to purchase more economical alternatives than perceived luxuries. He believes this creates new opportunities for a number of retailers.
He expects to see ecommerce sales continue to grow at a very brisk pace when compared to total consumer sales, creating more opportunities for retailers using new platforms to sell more value-based products or perceived necessities. "As more consumers move to using ecommerce as a vehicle to purchase items, and given lower priced items tend to sell more as a percent of total retail sales, many "etailers" will continue to see their business grow faster than the retail industry on average."
This holiday shopping season Cacye believes consumers will buy the same amount of units, but do it less extravagantly. Cayce suggested small retailers and online sellers research current customer demand along with the price points at which they would be able to sell the product profitably. "Buyers should always avoid an impulse purchase or buying too deep in a particular product just because a great deal exists."
Small online sellers can use Liquidation.com to source product - and to liquidate inventory.
"A large number of our buyers are also experts in adding value to the merchandise they purchase on Liquidation.com. This could range from simply pulling individual units out of a bulk lot, repackaging the goods, or doing light refurbishment to ultimately add value to the consumers."
"If you know your customers, you know what will be intriguing and add more value to the customer."
According to a report from the International Council of Shopping Centers, same-store sales at retail chains plunged 0.9 percent in October, the steepest such drop in nearly 40 years. But what the current economic crunch means for ecommerce is less clear. 
