Excess inventory doesn’t have to affect your business negatively.
Whether you keep stock in warehouses, shops, or both, space, where you stock your products, is valuable, and there is no room for excess inventory.
For any business supplying physical goods, you’ll know that no two products that you stock will have the same turnover rate. Goods that usually sell at a slower pace than others will likely turn into excess inventory.
No matter how defined your inventory planning, all retailers will experience unexpected changes in inventory.
Here at Bray, we can provide some tips for making the most of excess inventory:
Offer Bulk Discounts
Everyone loves a bargain. Pairing a bestseller with slower inventory and selling them at a discounted price is a great way to keep even the slowest items moving off the shelves. Consumers love to spend money if it means they’re getting something for free or cheaper than usual.
Use excess inventory as an incentive.
Use your products or services as an incentive to get consumers to encourage their friends to buy from you. Offers such as ‘Get one free product when you refer a new customer to us’ will work wonders. The clothing company, Next, encourages customers to invite friends, which in turn, Next offers £20 off yours and your friend’s next purchase when the friend spends over £40.
Offer Items to a Subscription Box
Subscription boxes are all the rage right now. Consumers see them as a thrilling creative way to incorporate surprise and pleasure into their buying patterns. Businesses now appreciate the importance of these services as a way for consumers to discover your products. The subscription box model enables retailers to get their products off their shelves and directly into the hands of their target audience.
Sell it online
Why not sell your excess inventory to liquidators who will sell them on your behalf? It is a useful B2B marketplace where your stock is listed in an auction. By auctioning your excess inventory, you could sell the products for a higher price. Make sure to understand the value of your inventory before selling at auction and stick to a price before you go to a liquidator.
If you don’t have enough to sell to a liquidator, try selling on third-party sites such as eBay. Perhaps selling them at a lower price will encourage customers to purchase them on the third party site where it’s cheaper compared to your store. As long as it sells somewhere!
Donate to benefit others and yourself at the same time
If you have tried these methods and cannot seem to shift the products, why not donate them to organisations to raise your visibility? You could give products to schools, public libraries or even local events in the community. Not only are you helping those in need, but you’re also promoting your business in a positive light to potential consumers.