Sell-first and Asset-light

This WSJ article on how Macy’s and other U.S. apparel retailers are managing their inventory caught our attention.

At BrandMX , we recognize the need for retailers to be nimble in managing inventory risk. In today’s retail landscape, retailers face (1) rapid changes in consumer behavior (post COVID return-to-work means “squeezing” of certain discretionary categories), (2) uncertain consumer demand given economic conditions, and (3) continued strong foothold of online shopping vis-a-vis in-store purchases.

BrandMX helps retailers adopt a “sell-first”, “asset-light” model. BrandMX’s operational framework and technology infrastructure allows retailers to mitigate inventory risk.

Retailers sell the product before sending the order to us for fulfillment (“sell-first”), and this also means they do not have to purchase and carry the inventory on their books (“asset-light”). BrandMX offers a dropship model for every class of retailer that works with us: majors, niche e-commerce, and brick-n-mortars.

BrandMX has a ready-to-ship brand portfolio. We stock hundreds of products across several categories; our brands are specialty and premier both in their offering and price points. Retailers, Macy’s being an active one in our network, are able to expand their online assortment while taking on a no-inventory-risk, marketplace sourcing model.

In the coming weeks, we will talk about the technology we have built in-house that enables us to enable such an innovative model for both the brands that sell through us and the retailers that buy from us.

Published by Deepa Dadlani

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