For retailers, having excess stock will not only take up precious backroom or shelf space, but can also tie up capital and can keep you from re-investing in your business or buying things you actually need.
Excess inventory can be a result of purchasing decisions, marketing or a change in the marketplace.
However, there are a number of things you can do to sell or liquidate your slow-movers.
- Refresh, remerchandise, and remarket your products – make them look new and fresh instore or in your marketing but be aware of associated promotional costs.
- Double and triple-expose your merchandise — can you display in more places in order to attract attention?
- Discount products — create a strategy around discounting so that you motivate shoppers.
- Bundle excess stock — with complimentary or faster-moving products.
- Use excess stock as freebies or incentives — offer low-cost items as an incentive for shoppers who spend more than a certain amount.
- Sell them to liquidators and marketplaces — this may result in a lower return but free up space and capital for your business.
When handled properly, excess inventory can actually open up sales, customer engagement, and tax opportunities for your business. Read the full article on dealing with surplus inventory below.
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