Having too much inventory can place a financial burden on your business and present operational challenges. Implementing a good inventory management system may save you from these. However, even when closely monitoring your sales and inventory data, you can find yourself with an excess of inventory. This can sometimes arise from uncontrollable factors, such as a sudden change in trends. Whatever your situation, use these eight strategies to help reduce inventory losses and clear excess stock.
Refresh or Re-Merchandise
The item itself may not always be the reason it’s not selling. Sometimes it can be the positioning or marketing of the item. Give customers a fresh perspective on products with excess merchandise by changing the display or placement of the items. You can refresh or re-merchandise in both the retail space and the virtual space. Changing displays by adding new, bright signage (or banners for online products) or moving them to a different location in the store can help promote the product in a new light.
Discount the Items
Running a flash sale for items with excess inventory can help create a sense of urgency and drive inventory reductions. This tactic also can increase customer growth, as flash sales usually help to attract new customers. When offering a discount to get rid of overstock inventory, it is a good idea to start with a lower discount and increase to a greater discount, if necessary. This tactic will help to lessen the financial hit of excess inventory by cutting the price slowly to find the sweet spot for the demand. Another important note about sales and discounts: time and implement them wisely. This means not running them so often that it trains customers to wait for sales or discounts before purchasing.
Bundling complementary or related products is a way to help liquidate items taking up inventory space by capitalizing on successfully selling products. Pairing fast movers and slow movers helps to encourage more sales of products that lag. It is one of the most popular selling techniques for businesses.
Enhance the Online Product Listing
Enhancing online product listings can give customers a new perception of the product. You can highlight specific uses based on recent trends or events to prompt a customer’s need for the product. Consider changing the current description, details, and photographs to show the items in their best light and demonstrate how they can better meet the customers’ needs. A simple image change may be all that is needed to catch customers’ eyes and prompt a purchase.
Use Free Shipping
Free shipping has become part of the norm when shopping online; it can be a deciding factor for consumers making a purchase. Consider applying free shipping to a product or product category that has excess inventory to help move these items.
Remarketing allows you to send advertising to customers who show interest in purchasing specific products. You can set up your advertising content to target those who have viewed the item with excess inventory or currently have the item in their carts. Using remarketing, you can make a strong push at those with a high interest in your products.
Using a hard-to-sell item as a free gift or as a giveaway item can help reduce the inventory of those items. This technique is best for low-cost items, but it is an effective way to clear excess stock while increasing a customer’s total purchase amount in your store.
While donating the overstock inventory to a charity or non-profit may not supply the same monetary incentives, there are other benefits:
- Warehouse space will be cleared quickly for other inventory.
- You can spin the situation as a positive publicity move.
- You may be eligible for tax benefits.
NetSource Can Help
NetSource has over two decades of experience managing inventories, so you can trust that we will help provide you with cost-savings and revenue-generating solutions for your excess stock. Contact us to get started on your customized inventory management solution to address any inventory concerns of your business. We are dedicated to improving your inventory management practices.