How Retailers Are Drowning in Inventory… and the Surprising Way They’re Fighting Back in 2025
Retailers in 2025 are learning the hard way that more isn’t always better. After years of supply chain shocks, many companies doubled down on stockpiling to avoid shortages. By the summer, warehouses were overflowing - not because shoppers are buying more, but because consumer demand is softening.
The result: a retail sector with record-high inventory levels and sluggish sales.
So how are brands coping? Increasingly, they’re turning to B2B resale platforms to keep excess stock from sinking the ship.
The Inventory Surge by the Numbers
Port of Los Angeles hit its highest monthly throughput ever, proof of forward-stocking strategies.
B-Stock data shows surplus goods spiked in July 2025, with new inventory making up 49 percent of all units - way up from last year.
Furniture and mixed lots saw year-over-year growth of more than 600 percent.
Retailers hoped “pre-stocking” would protect them from volatility. Instead, many are stuck with unsold goods, even as the National Retail Federation (NRF) reports consumers remain cautious despite seasonal sales bumps in July.
And then there’s the cost problem. Warehousing is still getting more expensive. As Marcus Shen, CEO of B-Stock explains: “Although warehouse pricing in 2025 has not skyrocketed as it did in recent years, costs are still rising. Higher carrying costs add pressure on retailers to manage inventory more efficiently.”
Translation: stock that sits is stock that sinks.
Why the Secondary Market Is Exploding
Enter the secondary market. What was once a dumping ground for returns is now a critical strategy for managing oversupply.
B-Stock moved 140 million units in 2024.
In July 2025 alone, apparel unit sales on the platform jumped 124 percent year-over-year.
More of that inventory is brand new, never sold — showing retailers are actively liquidating, not just offloading returns.
Platforms like B-Stock use online auctions and tech-enabled matching to connect retailers with small and mid-sized business buyers. That means faster liquidation, cash flow recovery, and less time paying for warehouse space.
As Matthew Shay, NRF CEO, puts it: “The secondary market is no longer just a channel for unsold or returned goods. It has evolved into a strategic tool for balancing supply and demand while improving profitability.”
What This Means for Retail in 2025
With both consumer caution and inventory surpluses weighing on margins, retailers have to get more agile. B2B resale is quickly becoming a key part of that toolkit — not just a side channel, but a benchmark of operational excellence.
The takeaway: in 2025, survival isn’t about who has the most stock. It’s about who can move it the fastest.
