According to IHL Group, overstock costs retail businesses $562 billion. These warehouses filled with surplus products aren’t just storage liabilities — they represent a potential gold mine of untapped revenue, waiting to be channeled back into the circular economy.
Overstock is especially important for tech retailers, which have a major environmental incentive to keep functional tech out of landfills. E-waste is one of the fastest-growing solid waste streams in the world, having increased by 82% — and it shows no sign of slowing down.
There’s a clear business case for finding alternative pathways for excess inventory. The circular economy (or more familiarly to some, the recommerce model) doesn’t just move surplus tech around — it turns potential losses into profit. It’s a simple way for retailers to boost the bottom line while doing something good for the environment.
Understanding Overstock in Tech Retail
Overstock is more than just unsold inventory. It includes unsold devices, returned items that can’t be sold as new and warranty-covered products. All are an increasingly expensive problem for retailers. One major factor is online shopping, as studies show that return rates for online electronics purchases can reach 20% compared to just 8% when in-store.
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At the same time, product cycles have sped up a lot. All manufacturers release new models at a consistent pace, meaning that when a new smartphone or laptop comes out, retailers are often stuck with older models that are harder to sell at full price. And with consumer demand highly sensitive to trends, reviews or competitive product launches, a projected bestseller can quickly become deadstock when the market swings unexpectedly.
The Hidden Costs and Opportunities of Excess Tech
Of course, there will be some returned items that are simply too damaged or dysfunctional to resell. But there are many returned items that arrive back in opened packaging or with minor cosmetic imperfections that prevent them from being resold as new, even though they are fully functional. These products enter an intermediary state — too valuable to discard but challenging to move through traditional retail channels.
We have hit a great balance with the pace of innovation with technology. There are enough ‘early adopters’ who want the latest model, but older models are still perfectly reasonable for many others. That creates an enormous market opportunity for devices that end up as overstock, as they can be sold to those who are neutral about having the very latest model and might otherwise shop elsewhere.
Financially, tech overstock ties up capital and incurs storage, insurance and handling costs. But beyond balance sheets, the environmental cost of idle tech is equally troubling. Unused tech wastes rare materials, energy and water invested in production. If never sold or used, these resources effectively go to waste when these products fail to reach consumers who could benefit from them.
Retailers increasingly face pressure to rethink inventory strategies. The challenge, and opportunity, lies in turning overstock from a costly burden into a sustainable, revenue-generating solution.
B2B Marketplaces as the Solution
Specialized B2B platforms have become much more commonplace and are changing overstock management — offering centralized, global ecosystems for resale, redistribution and value recovery.
Old-school liquidation means retailers usually lose most of their money. But these new B2B marketplaces are different. They connect retailers straight to wholesale buyers who want the products. This direct connection provides value for the retailer, and the ability to send products to places where people still want them instead of just gathering dust in storage.
These B2B tech trading marketplaces mean businesses make money while doing something good for the environment. It’s what retail should look like in the future — where doing the right thing for the planet also helps your business grow.
Every device sold through these platforms means more money for retailers and one less item in a landfill. When working tech gets a second chance, it means we don’t need to make as many new devices. We’re using what we already have for longer, which saves resources.
Every device that finds a new home through these platforms represents recovered revenue for retailers and a product diverted from landfill. The environmental impact is substantial. A refurbished smartphone saves 64kg of CO2 emissions from manufacturing a new one and avoids adding 200g of e-waste to landfills. When functional technology re-enters the market through alternative channels, it extends product lifecycles, reduces the need for new manufacturing and keeps valuable resources in circulation.
From Surplus to Strategic Asset
Overstock doesn’t have to be wasted money. New tech trading platforms show there’s a better way to handle it, by matching extra inventory with people who want it. This helps build a circular economy.
The retailers that thrive recognize that sustainability and profitability are not mutually exclusive. It is no coincidence that the world’s largest technology manufacturers have been active in the circular economy for some time now. The future of retail is circular, and those who adapt first will gain a competitive advantage.
In a world of finite resources and growing environmental consciousness, the ability to efficiently recirculate tech surplus isn’t just good for the planet — it’s good business.
John Doughty is SVP of Global Partnerships at Alchemy, one of the world’s fastest-growing global circular technology companies. Based in Kansas City, Doughty leads the expansion of Alchemy’s global presence, driving strategic partnerships across 60 markets. With over 30 years’ experience in the mobile and technology services industries, he previously held leadership roles at TD Synnex, Exertis, Brightstar, LucidCX and Tech 21. Doughty is committed to building strong teams and sustainable partnerships that power continued global success, with a passion for driving leadership and growth.
