Retailers Flock to Resale Following Frontloading

Retailers raced to frontload inventory in anticipation of looming tariffs, as evidenced by a record-breaking month at the Port of Los Angeles; the major gateway processed over 1 million 20-foot equivalent units (TEUs)—with imports hitting 543.7 million TEUs—in July alone. Concurrently, storage costs spiked (see: bonded warehouses) and consumers began to slow spending; the average effective tariff rate for stateside shoppers is 18.6 percent, per the Budget Lab at Yale.

“Consumer spending increased in July,” according to National Retail Federation president and CEO Matthew Shay, “driven by successful summer sales events held by many retailers and shoppers continuing to pull purchases forward ahead of tariffs.”

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The result? As retailers contend with high levels of excess stock, much of this surplus inventory is rapidly moving into the secondary market, according to B-Stock.

“July marked the busiest month in the port’s 117-year history; this surge reflects how many businesses accelerated shipments to avoid potential tariff hikes later in the year,” B-Stock CEO Marcus Shen said. “For retailers and supply chains, this isn’t just a number—it’s a clear sign of how trade uncertainties are shaping inventory and buying decisions.”

By dint of such aggressive frontloading, B-Stock reported a significant uptick in excess or overstock inventory across the retail sector. And much of this inventory—which cannot be efficiently absorbed by the primary sales channel—is now flowing into the secondary market. And that means the secondary market is becoming “increasingly critical” for retailers to recoup value from surplus inventory and clear warehouse space.

“While 2025 hasn’t seen the major spikes in warehousing pricing we’ve witnessed in recent years, prices are still rising,” Shen said. “These higher holding costs place additional pressure on retailers to manage inventory efficiently; leveraging B2B resale platforms helps retailers reduce storage time, mitigate costly fees and improve cash flow.”

The B2B resale platform reported a groundswell in brand-new, overstock merchandise from big box retailers, with the number of overstock items listed reaching 49 percent this July, compared with 37 percent the period prior.

“In fact, July’s data showed a 124 percent year-over-year increase in apparel units sold across our platform,” Shen said. “Traditionally, customer returns have made up a larger share of inventory than brand-new overstock, but last month we saw that gap narrow by 15 percent, signaling a swelling influx of overstock items in the apparel category.”

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That impact was strong across several general merchandise categories, with furniture up 663 percent and mixed lots up 760 percent. Apparel, meanwhile, was up 124 percent. More specifically, B-Stock recorded nearly a 15 percent (July YoY) increase in the number of overstock apparel items sold across the platform.

With over two dozen groupings of inventory handled, “apparel has consistently been the No. 1 general merchandise category in terms of units sold,” Shen said, adding that 2025 was no exception. Historically, over 70 percent of B-Stock’s apparel inventory is customer returns, with some 30 million apparel pieces sold last year.

For more context, the resale platform connects brands and retailers with excess inventory to business buyers who want it. Considering the supply chain disruptions that have plagued the retail industry since April 2, stores have a greater need for inventory while manufacturers have often found themselves with goods—particularly of the seasonal variety—that arrived too late and are no longer needed.

Enter B-Stock.

The San Mateo, California-based business works with 100-plus brands; B-Stock declined to name names, though its website boasts heavyweights like Amazon, Target and Walmart as well as fashion-focused firms like Journey’s and Rent the Runway. Designed to connect sellers and buyers of returned, trade-in or excess inventory through a suite of online resale channels, the platform offers a tech-driven replacement (see: online auctions) to the traditional liquidator route. In 2024, B-Stock sold 140 million units across its platform—giving 1 million tons of inventory a “second life.”

“While there have been some bright spots, much of the lift has come from higher-income shoppers and strategic promotions, with everyday consumers tightening their wallets as they deal with persistent inflation, new tariffs and higher household debt,” Shen said. “For retailers, this means remaining agile, especially when it comes to managing inventory and protecting margins.”

On the topic of consumer spending patterns, Shen noted a slowing momentum after the year’s strong start. Forecasts predict spending growth could taper from 2.4 percent in the second quarter, he continued, to under 1 percent by year’s end.

“Many retailers are proactively accelerating orders to ensure shelves are stocked ahead of potential import penalties,” Shen said. “While this strategy helps control costs in the short term, it can also lead to challenges—particularly when consumer demand softens.”

On the topic of softening demand—and as a final piece of context, the NRF projected returns to reach $890 billion in 2024, accounting for 17 percent of all merchandise sales—up 15 percent from 2023’s $743 billion in lost sales.

Last month, total retail sales, excluding automobiles and gasoline, were up 1.45 percent seasonally adjusted from June, according to the CNBC/NRF Retail Monitor, compared to a month-over-month (MoM) sales decrease of 0.33 percent. Clothing and accessories stores were up 1.75 percent MoM seasonally adjusted and up 6.73 percent YoY unadjusted, the Retail Monitor, powered by Affinity Solutions, found.

“We may be seeing growing inflationary impacts from tariffs since recent data shows price increases in commodity goods, particularly non-durables,” said Shay. “Even with weaker job growth than many expected, consumers still have the ability to spend on household priorities as wages are growing above the rate of inflation.”

Last year’s return rates rose 8.5 percent during the holiday season, per B-Stock; in the apparel sector specifically, those rates ranged from 25 to 40 percent.

“I anticipate this trend reflects broader shifts in the retail landscape: as retailers frontload inventory and consumers pull back on discretionary spending, surplus stock will become a significant factor,” Shen said. “Heading into year-end, I expect the proportion of overstock inventory flowing through secondary channels to continue rising—making B2B resale platforms like B-Stock increasingly essential.”

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