In the competitive business world, efficient management of surplus inventory is important to sustain growth and profitability. Surplus inventory is basically the excess stock that increases owing to market fluctuations, shifting consumer preferences, or unanticipated disruptions. Keeping too much unnecessary inventory ties up the capital and increases storage cost and risk of obsolescence, reduces cash flow, and decreases profit margin.
However, to save your business from these disadvantages, managing and liquidating the surplus inventory as soon as possible is important. Inventory management goes beyond mere selling and requires smart and innovative approaches to sell it appropriately and get some financial benefits. A smart strategy assists in creating buyer-resonant experiences and arranging marketing tactics that excite interest.
From inventive discount structures to individualized offerings and strategic collaborations, surplus inventory selling requires a seamless balancing of profit-making and the science of customer engagement. In this article, we will delve into some smart ways to liquidate surplus inventory, clearing the warehouse and making it an opportunity for revenue generation.
Offer Discounts and Promotions
The simplest and most effective way to sell surplus inventory is by offering discounts and promotions that entice customers. Create attractive offers like bundle deals, clearance sales, buy one get one free, coupon discounts, refer friend discounts, loyalty programs, etc., to influence customers to purchase the surplus inventory. Besides that, offering tiered discounts is proven to be one of the most effective ways to clear the surplus inventory in bulk. In this, the percentage of the discount goes up with the increase in the quantity of items purchased. This encourages customers to spend more in order to take advantage of larger discounts.
Almost 90% of businesses use this strategy to sell excess stock and gain financial advantage out of that unusable stock. Bundling is grouping related products and selling them together as a single package at a lower price than the individual prices. This includes bundling old and new products together or famous and outdated products together. Bundling related products not only clears inventory but also increases sales, enhances perceived value, and fosters brand loyalty as people get more interested in the supplement products that they can buy in the bundle. Besides that, bundling products is an excellent opportunity to enhance customer experience and promote the cross-promotion of new items, which ultimately increases overall revenue and fosters the growth of the company.
Try Consignment Service
Sometimes, a product requires unique selling efforts and high-level marketing strategies that an average business cannot afford. In such a situation, opting for a consignment service is the best option to merchandise the products to third parties to sell on your behalf. The ownership of goods remains with you, and the consignee company takes the responsibility of selling your goods at the best market prices. After selling, the consignee company receives a certain amount of commission or percentage of sales as compensation, which is generally discussed during the contract, and the rest of the amount is given to you. This not only increases revenue but also decreases the overhead costs like marketing, promotion, and displaying, etc., as that comes under the responsibility of the consignee company.
Remerchandising or Remarketing
The cause ofsurplus inventory is usually a lack of demand, but this is not always the case. Sometimes, the reason could be improper marketing and untargetedpromotional activities to present the product to the market. In such a situation, remerchandising or remarketing can be a perfect strategy that involves proper rearrangement of merchandise and modified presentation of goods along with using top-level marketing strategies. The main aim of remerchandising is to enhance the presence, influence buyers, enhance the shopping experience, and ultimately boost sales. Remarketing involves retargeting the potential customers who once interacted with the products in some way or another but did not make a purchase. This involves using the best digital marketing strategies like customized ads, Facebook retargeting, cookie tracking, e-mail remarketing, etc., to reconnect with them and encourage them to take action.
Offering sales is the most common but effective strategy to attract customers and sell excess stock. Sales attract new customers and influence their buying decisions positively due to excess discounts or sales offers, which are financially beneficial for them. In offering sales, the profit margin is generally low, but as we know, something is always better than nothing, so even a low profit margin is beneficial for the company. Effective sales strategies are much more than a simple discount or offer.
Besides everything else, time is the most critical factor when it comes to sales, as seasonal trends, holidays, or special occasions sales are more profitable compared to regular day sales. Businesses can choose clearance sales, seasonal sales, and flash sales according to the type of products in stock. Businesses have witnessed huge profits during flash sales because it produces a sense of urgency in customers, which has a physiological effect on them, and the fear of losing out brings a large number of people to your shop.
Leverage Online Marketplaces
If you haven’t tried selling online, you’re missing out on something big and effective. Online Marketplace has the power to make your products reach globally and access a huge customer base. It is possible that the product which is in excess quantity with you has a massive demand in some other part of the country or world. When such products reach a wider audience, the chances of selling also increase. Platforms like Amazon, eBay, Flipkart, Shopify, and e-commerce websites can potentially sell your excess inventory at the right cost and to the right people. However, to grab visitors’ attention and influence them to buy your products, it’s imperative to add high-quality images and videos, appropriate descriptions, any offers or discounts, if applicable, and some positive customer reviews.
Effective management of surplus inventory is one of the biggest challenges that can be transformed into a big opportunity for growth and profitability. There are numerous innovative ways to sell the surplus inventory, increase cash flow, recover capital, clear the shelves, and grow the business. From offers and discounts to sales and consignment services, the smart ways we have discussed in this blog will help you decide a perfect way to liquidate your excess goods and gain profit out of them. Overlooking the excess stock for a long-time result in obsolescence and wastage, which is a loss to the business. Therefore, use these right strategies to convert the burden of excess inventory into a profit-generating opportunity.