Services
Excess Inventory Management
We use our sales and marketing channels to assist OEMs and CMs with selling their unused inventory.
We use our sales and marketing channels to assist OEMs and CMs with selling their unused inventory.
Electronic component inventory can quickly pile up—whether from project overruns, unexpected design changes, or obsolete parts from discontinued builds. Instead of letting that excess take up valuable shelf space and tie up capital, let Microchip USA help you turn it into revenue.
We specialize in helping companies like yours recover value from unused inventory with minimal effort on your part. Our Excess Inventory Management Service is designed to give you flexibility, transparency, and real returns through two unique service models.
When you consign with Microchip USA, we handle the heavy lifting. From storing and organizing your inventory in our facilities to marketing and selling through our global distribution network, we manage the full sales process.
Consignment is ideal for companies looking to:
• Free up valuable warehouse space
• Minimize ongoing storage or holding costs
• Avoid the hassle of listing and selling inventory
• Focus on core operations while we manage excess stock
Here’s how it works:
1. You ship your excess inventory to our secure warehouse or testing facilities.
2. We inspect and catalog the parts, ensuring they are properly stored, tracked, and ready for sale.
3. Our team lists and promotes your components across our global network using targeted marketing efforts and sales outreach.
4. Once a sale is made, we handle the fulfillment and logistics directly with the buyer.
5. You receive 60% of the revenue generated from the sale.
We don’t take ownership of your inventory—you maintain full control while we act as your selling partner. This model offers the most hands-off approach with the highest potential return.
Our Revenue Share model, formerly known as "Marketing Channels," allows you to keep your inventory on-site while we handle the marketing and sales process. This option is suitable for companies that:
• Prefer to maintain possession of their inventory
• Seek a low-commitment method to monetize surplus
• Have the capacity to manage storage and initial logistics
Here’s how it works:
1. You provide us with a detailed list of your excess components.
2. Our marketing team promotes your inventory across our extensive sales channels.
3. When a sale is made, you ship the components to our warehouse or testing facilities for fulfillment.
4. You receive 30% of the revenue generated from the sale.
While this model offers flexibility, it involves shared responsibilities and may yield a lower return compared to the Consignment option.
Our marketing team leverages a variety of channels to ensure your excess components reach potential buyers. These channels include:
• Our company website
• Email campaigns
• Targeted outreach to our network of OEMs, CMs, repair centers, and distributors
• Direct sales efforts
By utilizing these channels, we aim to connect your surplus inventory with buyers actively seeking such components, facilitating a smoother sales process for you.
1. How will Microchip USA help with my excess?
Your parts will be added to our Excess Inventory Management Program. Depending on the service you choose—Consignment or Revenue Share—we’ll either store and manage your inventory directly or promote it across our sales and marketing channels while you retain possession. Once a buyer is identified, we’ll coordinate the next steps with you to ensure a smooth fulfillment process.
2. Who will handle the logistics of shipping my components?
• For Consignment: We handle all logistics, including receiving, storing, and shipping your components to the buyer. We also cover the shipping costs of sending your components to our facility.
• For Revenue Share: You maintain possession of the components and ship them to our warehouse or testing facility once a sale is made. We coordinate shipping case-by-case based on the sale requirements.
3. What determines the price and how will I get paid?
We ask for a target selling price for each line item you submit. If you're unsure of pricing, we can reference current franchise or market prices. Once a component is sold, your payout is based on the model you’ve selected:
• 60% of the sale for Consignment
• 30% of the sale for Revenue Share
4. Is my inventory exclusive to Microchip USA?
• Consignment: Inventory is exclusive to Microchip USA, exclusions may apply.
• Revenue Share: We strongly prefer exclusivity so we can effectively market and manage your inventory. If your items are sold through other channels, we ask that you notify us promptly to avoid conflicts.
5. How long do parts stay listed?
Parts remain listed until they are sold or you request their removal from the program. There is no time limit or penalty for listing duration.
6. Is there an upfront cost?
No. There are no upfront or hidden fees to use our Excess Inventory services. We only make money when your components sell.
7. What are the advantages of consignment over the marketing service option?
With Consignment:
• We handle storage, logistics, marketing, and fulfillment.
• You receive 60% of the revenue.
• You save time and space while maximizing return.
With Revenue Share:
• You retain the inventory and handle initial shipping post-sale.
• You receive 30% of the revenue.
• It's a low-commitment option, but with slightly less upside.
8. What if the order is less than what I have packaged? Who can handle re-packaging?
Yes. We can coordinate repackaging through our trusted, accredited third-party lab partners. This is another reason we recommend the Consignment model—it gives us more flexibility to manage these logistics efficiently on your behalf.