Finding a Home for Excess 3PL Inventory
In this episode of The New Warehouse Podcast, Kevin chats with Abby Nawrocki, CEO and Founder of Stock. Abby brings deep experience in operations and logistics, having worked with companies like DHL, Radial, Shopify, and Flexport. Her company, Stock, focuses on solving a growing supply chain problem: excess 3PL inventory.
Through a marketplace model, Stock connects warehouses and brands with nonprofit organizations that can use surplus goods. The conversation explores how excess 3PL inventory builds up, why traditional liquidation often fails, and how alternative channels, such as donation, can create both financial and social value for modern warehouse operators.
Excess 3PL Inventory Is a Growing Supply Chain Challenge
Excess 3PL inventory has long existed in retail and distribution networks, but its scale has grown dramatically in recent years. Abby’s experience managing Zara’s U.S. distribution operations exposed her early to the challenge of unsold product.
Even major retailers struggle to recover value from surplus goods. Abby explains that “when it comes to liquidation, less than 20%, almost 5% of what retailers or brands present to liquidation actually gets sold.”
The problem has become even more pronounced in the direct-to-consumer economy. During Abby’s time working with Shopify-focused logistics networks, she saw how quickly brands could rise—and disappear. Warehouses serving these brands frequently inherit unsold product after companies shut down. As Abby notes, “There are 4 million brands that sell on Shopify, but 90% of them go out of business in the first three years.” That failure rate leaves 3PLs dealing with abandoned pallets and excess inventory that often has no clear path forward.
Why Traditional Liquidation Often Falls Short
For many warehouses, liquidation has long been the default strategy for moving excess 3PL inventory. In practice, however, the process can be slow and inefficient. Inventory may sit in storage for weeks while buyers are sourcing and negotiating. Abby points out that “in traditional liquidation, it takes 16 weeks on average to go from calling a liquidator to actually leaving the warehouse physically.”
During those months, valuable warehouse space remains tied up with non-moving goods. Abby notes that the cost of idle pallets extends beyond storage fees and can affect a facility’s overall productivity.
Faster alternatives can dramatically change that equation. As she explains, “In donation, we can do that in less than five days.” By accelerating inventory removal, warehouses can restore capacity and focus on products that generate operational revenue through picking, packing, and shipping activity.
Connecting Excess 3PL Inventory with Nonprofit Demand
While warehouses struggle with surplus products, nonprofit organizations often struggle to find inventory to support their missions. Abby discovered that these two ecosystems rarely connect, despite having complementary needs. The nonprofit sector is far larger and more specialized than many operators realize. As Abby explains, “There are 1.5 million nonprofits in the US, and they are so niche.”
Many of these organizations rely on donated goods to run programs or serve communities. Yet access to those goods can be inconsistent. Abby notes that “80% of them need inventory.” By creating a platform that connects excess 3PL inventory with nonprofit demand, Stock helps redistribute products that might otherwise go to waste.
Looking ahead, Abby sees donation as one important piece of a broader solution. As she explains, “donation is a sister channel to liquidation, destruction, recycling, and secondhand selling.” Building a full suite of end-of-life inventory options could help supply chains handle excess goods more efficiently in the future.
Key Takeaways
- Less than 20% of inventory gets liquidated, and in some cases, the figure is closer to 5%.
- Shopify hosts about 4 million brands, yet roughly 90% fail within three years.
- Traditional liquidation can take about 16 weeks for excess 3PL inventory to leave a warehouse.
- Donation channels can move inventory in fewer than five days.
- The United States has roughly 1.5 million nonprofit organizations.
- About 80% of nonprofits report needing inventory to support their programs.
- Apparel represents about 23% of the inventory flowing through Stock’s platform.
- Food and beverage is the second-largest category, driven by packaging changes and expiration cycles.
- Cosmetics rank third among the most frequently redistributed products.
- Donation provides an additional channel alongside liquidation, recycling, resale, and disposal.
Listen to the episode below and leave your thoughts in the comments.
Guest Information
For more information on Stock, click here.
To connect with Abby Nawrocki on LinkedIn, click here or email her directly at abby@stockitbetter.com.
For more information about excess 3PL inventory, check out the podcasts below.
629: Bringing Joy to Reverse Logistics with Happy Returns
571:Rethinking Retail Return Logistics with Fillogic and Loop Returns
