RetailExchange

About RetailExchange

RetailExchange operates as an online, business-to-business marketplace designed to manage and sell excess inventory for manufacturers and retailers in the consumer products sector. Founded in 1999 and headquartered in Boston, MA, the company provides a platform that facilitates the liquidation of overstock goods. This service connects businesses holding surplus stock with a network of buyers, thereby converting stagnant assets into cash.

The company was notably co-founded by Gordon Brothers Group, a global firm specializing in asset disposition services, which later acquired RetailExchange in November 2001. This acquisition integrated RetailExchange's web-based marketplace directly into Gordon Brothers' suite of services, aiming to create a comprehensive solution for clients looking to maximize the value of underperforming assets. At the time of the acquisition, Frank Carpenito served as the President of RetailExchange.com. The platform was established with funding from a consortium of investors that included Gordon Brothers, 3i Group, Actua, American Express, Castile Ventures, and Dorset Capital Management.

The business model centers on providing a service that automates aspects of the supply chain for liquidating excess consumer goods. Following its acquisition by Gordon Brothers, the marketplace was made available free of charge to all users, with revenue generated through success-fee brokering services provided by its sales force for sellers of excess products. This structure allows retailers and manufacturers to efficiently manage and monetize surplus inventory, ranging from apparel to general merchandise, leveraging the technological capabilities of the online platform and the extensive industry expertise of Gordon Brothers.