The world supply of electronic components has gone from stable, to critical shortages, to over-stocking, in the space of a few years.  COVID triggered the shortages, and the shortages triggered an over-reaction.  Many major companies now acknowledge that they are holding too large an inventory of parts, and that this is restricting their ability to increase their earnings.  Money that could go on product development, or optimising production, is tied up in components that are sitting, unused, in a warehouse.

What’s the best way for companies in this situation to sell their excess components?

1) Direct Sales

The company can ask its contacts, and their contacts, if they are willing to buy.  It  can ask its suppliers and its customers.  The limitation is that this is just a small fraction of  the potential market for the  components, which means they may not get a sale at the best price, or may not get a sale at all.  If they do get a sale they have to manage it themselves.  Selling overseas is complex, with tariffs, customs and shipping all needing to be organised.  This is complex and time-consuming, especially where it is not part of the normal knowledge and experience.

2) Online Auctions

Ebay etc make it far easier to reach a large audience than relying on direct sales.  That audience often isn’t looking to buy in bulk, which can mean selling the components in lots of smaller deals.  And it’s very price sensitive: if other suppliers are cheaper, even by a few per cent, they will get the business.  And the selling company still has to manage the shipping, customs etc.

3) Specialist Brokers

Specialist brokers, like us, have years of experience of selling excess components. We have spent thirty years building up a world-wide network of contacts, who have dealt with us in the past and trust us.  We know who is likely to be interested in buying a particular component.  We know what price to look for, and how to get it.  And we’re experts at fulfilling the sale.  Using us can be quicker and easier than using direct sales or auctions, and can get you a better return.