Excess2Sell - Excess Inventory Marketplace

In most of the verticals and domains where manufacturers, vendors, distributors, wholesalers, dealers and re-sellers form the basis of supply chain, there is bound to be some unsold, overstock, ageing inventories. As per industry estimates, in the Indian retail segment, of the overall goods of value US$500 billion – US$600 billion, at least 20 – 30 per cent inventories that differ from segment to segment lie unsold and become overstocked. The unsold inventory liquidation would be US$30 billion opportunity and one startup making the fullest of this very opportunity is Excess2Sell. excess2sell.com is an e-commerce platform for vendors, manufacturers, dealers, wholesalers and distributors for offering their unsold – overstock, excess, ageing inventory to buyers across various verticals. They deal in verticals like IT, Electronics, Computers, Industrial Goods, LED Electricals and Home Appliances, among others.

StartupTalky interviewed Excess2Sell CEO Rajan Sharma to know more about the company.

Excess2Sell Highlights

Startup Name Excess2Sell
Headquarter (City) Navi Mumbai
Founder/s Names Mr Rajan Sharma, Mr Anant Chaturvedi, Mr. Navinder Chauhan
Sector E-commerce
Founded 2016
Website link www.excess2sell.com
Parent Organization Checkers Technology India Pvt. Ltd.

About Excess2Sell and how it works
Excess2Sell – Vision and mission
Founders of Excess2Sell and Team
How was Excess2Sell Started
Excess2Sell - Startup Launch
Excess2Sell - Name and Logo
Excess2Sell - Business Model & Revenue Model
Excess2Sell - Funding and Investors
Excess2Sell - Startup Challenges
Excess2Sell - Competitors
Excess2Sell - User Acquisition
Excess2Sell - Growth
Excess2Sell - Future Plans

About Excess2Sell and How it Works

excess2sell.com is a comprehensive B2B platform marketplace for excess inventory management across verticals such as CE, IT Hardware & Software, Telecom, Security, Home Appliances, Apparels, Lighting and Home & Kitchen, among others.

Excess2Sell is a platform that offers an opportunity to manufacturers, vendors, distributors and wholesalers for liquidating their excess, unsold and aging inventory to help unblock capital stuck due to non-sales. The platform acts like a bridge between the seller who is stuck with unsold inventory and the buyer who may be keen to stock or has high demand for a given product in their locations. The platform provides opportunity to sellers to liquidate across India and helps them transact in a Confidential, Anonymous and Neutral way.

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Excess2Sell - Vision and mission

Excess2Sell aims to help retailers and wholesalers across all trade networks and channels in optimizing costs with excess inventory management through its portal, and provides access to buyers across the country.

Excess2Sell's long term vision is to provide a proven universal solution to businesses in helping liquidate unsold inventories and become a leader in the segment with focus on current business model.

The core belief and ethos which drives us is hard work, honesty and ethics.

Founders of Excess2Sell and Team

Rajan Sharma is the Founder & CEO of Excess2Sell. Anant Chaturvedi and Navinder Chauhan are the Directors of Excess2Sell.

Anant and Rajan  had been working together since 2003. They worked together at D-LINK (India) and then for its subsidiary GIGABYTE TECHNOLOGY till 2011. Post this they were part of the Smartlink Networks where Navinder joined.

Mr Amit Kundra who heads Excess2Sell's tech division had been supporting them from outside in reviewing the progress they were making, his experience in hyperlocal vertical at a Sequoi backed start-up helped. He came on board at Excess2Sell formally in 2018 and has helped Excess2Sell with designing and developing their mobile app. It is Rajan, Amit and Anant's cumulative cross-functional experience in Product Management, Business Management, Brand building and Marketing, that is the key to Excess2Sell becoming a successful platform for B2B buyers and sellers.

How was Excess2Sell Started

The idea of Excess2Sell was conceived sometime at end of 2015. The idea was to find ways and means to take action on inventory that remained unsold. Prior to founding the company, in Rajan Sharma's last professional stint he faced a force majeure situation with the product inventory at the distribution points which affected an entire location. The ageing inventory of stockists led to blocked capital and a slow turnaround time for sales. This was a problem that almost all stockists and wholesalers in the country faced and it presented an opportunity for developing a solution to remedy this issue. Excess2Sell began exploring ways to overcome this situation across channels and was conceived as a solution to overcome this problem faced by the large Indian B2B player base. So, Excess2Sell was launched three years ago with the aim to provide solutions to vendors, distributors, and wholesalers for managing their ageing inventories; and in helping them unblock the paid capital of the supply chain.

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Excess2Sell - Startup Launch

Post ideation and finalizing the business model, Rajan Sharma took almost 6 months to develop the back-end and front-end before the first transaction took place which was sometime at the end of August, 2016. The team had been clear from day one about the need to build up its business with an organic approach. Despite not having huge marketing spends, Excess2Sell focused on digital marketing and electronic marketing to reach our B2B database. This helped them kick start and scale up the transactions.

Excess2Sell - Name and Logo

The team of Excess2Sell wanted a name that would instantly signify what they do and hence Excess2Sell seemed just right for accomplishing the objective. They firmly believed that this concept will be enabler for the current ecosystem of vendors, distributors and dealers whom they will help re-distribute inventories from locations where they are stuck, to locations where there is demand and hence the tagline “excess inventory marketplace”.

Excess2Sell Logo

Excess2Sell - Business Model and Revenue Model

Excess2Sell platform follows a ‘zero’ inventory model where sellers upload the liquidation inventory on the online platform which is open to registered buyers and sellers. Once buyers confirm the off-take and conclude payment, the inventory procurement and dispatch is done. The platform generates revenue from sales activity of goods. Ideally every category has a pre-determined percentage of fees which is deducted as procurement price from the sellers. The average invoice value is in the range of INR 5 to 8 lacs.

The revenue stream with the launch of E2S Premium Membership earlier this year is being explored where a dedicated buyer or seller eco-system is being built on subscription model.

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Excess2Sell - Funding and Investors

Own and angel funds raised by Excess2Sell until date is INR 2 crores.

Excess2Sell - Startup Challenges

In the initial phase, the most challenging part was to ensure that buyers paid in advance for their orders. To gain their trust and confidence on this took immense goodwill and credibility of the founders and the team among their peers to kick-start. However today, word of mouth is the biggest factor in helping Excess2Sell  scale up the enterprise. With over INR 150 crore worth of liquidations, they have proved the sustainability of the business model and now it’s time for them to scale it up.

Excess2Sell - Competitors

Of late, many B2B companies have begun building their own platforms to tap into this relatively less explored excess inventory liquidation market, that is expected to reach to $700 billion by 2020. However, Excess2Sell has taken the lead as India’s largest pure B2B online marketplace for liquidating ageing and unsold assets.

Excess2Sell has distinguished itself by creating the only tech enabled enterprise that connects the B2B overstock market across India. They have the largest network of dealers and distributors on their online platform which they refer to as buyers and sellers. At the time when Excess2Sell was formed, the segment was very fragmented and was largely catered to by the unorganized segment. Through the unorganized approach, the reach remained limited as deals occurred on a one-on-one basis with sellers or buyers. As of today, specific to ‘excess inventory liquidation’, there is no other universal platform like Excess2Sell in the country. As mentioned before, one of the biggest advantages which Excess2Sell offers to both sellers and buyers is that they can transact Confidentially, Anonymously and Neutrally.

Excess2Sell - User Acquisition

The fact that buyers and sellers transact Confidentially, Anonymously and Neutrally (CAN) has helped the platform grow from strength to strength. It is extremely critical in the company's LoB( Line of Business) that the seller gets to offload their products anonymously and without disclosing the reason for their liquidating them. Liquidating products in the B2B space is often misconstrued as something being wrong with the product or with the demand for it, which is not at all true. It is mostly that the market, which may a specific geographic location, has not warmed up to it and is leading to blocking up the vendor’s operating capital. Excess2sell recognizes this pain point of the seller and hence CAN is a big plus for the user base. Excess2sell's repeat buyer - seller rate is close to 70 per cent.

Excess2Sell - Growth

All thanks to Excess2Sell, that the unsold inventory which was once considered a liability , is no longer a matter of concern for the businesses. Over the last three years, excess2sell.com has liquidated over Rs.150 crore of inventories. In the last year (2018) alone, the company mobilized over Rs.85 crore worth of excess inventory.

The platform has business reach of more than 200,000 B2B partners across India and the registered partner base is around 30,000 as of today. The transaction average is three plus per day with 3,600 active buyers and sellers. Excess2Sell currently operates from Navi Mumbai and is also present in New Delhi and Pune.

India’s B2B business base is 50 million strong and while it is a direct supplier of goods to the country’s 14 million retailer base, its reach remains stunted. E-tailing in India grew rapidly to become a $525 billion industry because it enjoys the advantage of being in the B2C marketplace. But the B2B e-commerce market is yet to realize its full potential and what it needs right now is a solutions based tech intervention. By offering a solution to address the pain points of the otherwise tech reclusive sector, Excess2Sell has given players in the B2B segment a reason and an incentive to come aboard.

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Excess2Sell - Future Plans

A majority of buyers and sellers are reputed manufacturers, vendors, wholesalers and dealers. The authorized sellers on the platform are vendors of companies like Dell, HP, D-LINK, Intel, Acer, Apple, Motorola and Samsung.

Excess2Sell successfully closed FY19 with liquidation deals worth INR 70 crores and are looking to close FY20 at INR 200 crores with projected successful transactions worth INR 900 crores for FY21. Excess2Sell is also looking forward to increasing the number of its registered partners by 100% to reach 50,000.

Our estimate of the branded packaged goods market size is $500 billion in the $2.8 trillion Indian economy. Even if we address only around half of this market and considering that we take 20 per cent of this as slow moving, that still is a $50 billion opportunity and the numbers are expected to double in six years from now
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About Chayanika Goswami

Chayanika is an MBA in Finance and a trained Digital Marketer. SEO and content writing are her hobbies turned profession. She is a rover. In her free time, she loves traveling and cracking jokes.