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 assets that help you grow your business.
Excess inventory can be a result of purchasing decisions, marketing or a change in the marketplace or supply chain.
However, there are a number of things you can do to sell or liquidate your slow-movers.
1) Refresh, Remerchandise, and Remarket your products – make them look new and fresh instore or in your marketing but be aware of associated promotional costs.
2) Double and triple-expose your merchandise — can you display in more places in order to attract attention?
3) Discount products — create a strategy around discounting so that you motivate shoppers.
4) Bundle excess stock — with complimentary or faster-moving products.
5) Use excess stock as freebies or incentives — offer low-cost items as an incentive for shoppers who spend more than a certain amount.
6) 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 Profit opportunities for your business.
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