It’s no secret that mom-and-pop outfits have had a tough time competing against big corporations that can offer consumers lower prices thanks to their ability to get better wholesale discounts.
A slingshot for those businesses may come in the form of OverstockB2B.com, recently launched by the Salt Lake City-based liquidation e-tailer Overstock.com. The site will give these entrepreneurs a chance to buy small volumes of brand-name products at about 30% less than wholesale, a deeper discount than they’d normally have access to, says Patrick Byrne, Overstock’s CEO.
To purchase from the site, buyers will be required to register as a licensed business owner and purchase by the case pack. The company has created a customer service department to cater specifically to the needs of small businesses; 11 ex-retailers are on staff and available to handle calls and questions.
There are about 130,000 small retailers across the United States, says Byrne, noting the new B-to-B site will be promoted via direct mail and in trade publication ads. He doesn’t see any danger in Wal-Mart-type companies coming in and scooping up the site’s deals: the quantities OverstockB2B.com typically purchases are too small to satisfy the needs of retailers looking to stock hundreds of stores.
Overstock.com has about 100 partners
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