'eBay for resellers' is launched by IT Dealer

Channel sourcing company IT Dealer has launched a “bargain stock” feature on its site that enables VARs to source returned products and end-of-life stock at discounted rates from distributors.

The site already allows VARs to check the availability of new stock from almost every distributor in the country; and now VARs will be able to make an offer to the distributors on kit that has either been returned or is end-of-line, Rickie Sehgal, managing director of IT Dealer, told CRN.

“The distributor has to declare what is wrong with the stock, whether the box is damaged, there are missing manuals or it’s end-of-line, and then there are five categories of warranty the distributor can offer on the bargain stock,” he said.

“There is also a place on the site for photos, so the distributors can show exactly what is wrong with it. The reseller can then make an offer directly to the distributor for the stock ­ it’s like eBay for the channel.”

Sehgal said that returned stock is often expensive for the distributor to keep hold of and then reship
somewhere else. “Holding returns just decreases margins on the stock and takes up space,” he said. “With this site, distributors can expose this stock to the very community who would be buying it anyway. VARs like the fact they can make an offer on it, which means hopefully they can also make more margin."

Dan May, operations director at VAR Ramsac, said it is not something his firm uses, but he can definitely see a need for it in the channel. “Most of our customers have longer-term purchasing strategies, but it is a good idea for the smaller businesses, which can pick up a real bargain,” he said.

“It will be like eBay though, in that sometimes VARs may get a great deal, and other times, not such a great deal, depending on timing. Dell has a similar shop, called Dell outlet, where it sells its own end-of-line or damaged stock and I know a few resellers who have got real bargains from this.”

Further reading

• Financial and Reporting

IT Dealer's stock is on the rise

• 01 May 2006

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