Inventory is a very crucial aspect of the business that needs constant attention. The success of your business depends on whether your product is moving or not. Even the most successful business face issues of either slow-moving or excess inventory.
This usually happens either at the beginning of the year, end of Christmas sale or at the end of other seasons depending on the region you are selling. Often, when new products come into demand the old products stop moving. Don’t think that if you keep it for some more time someone might purchase it. The only solution is to start finding ways to clear your stock.
Important points to note about the slow-moving and excess inventory:
Cash flow: Cash flow is the lifeblood of any business. Selling the slow-moving or excess inventory at a very low-profit margin is better than it taking up the shelf space in your warehouse.
Inventory should be sold within 90-120 days: If the items are been there in your shelf for more than 120 days, then its high time to anyhow get rid of them as it will increase your material handling costs and warehouse costs.
Holding the old inventory cost you more: Because of the old inventory stock you are not able to bring in and fill that shelf with new and fast selling products that would help you to earn more. If you have rented a warehouse then this dust collecting inventory is costing you more.
Slow moving and excess inventory happen to every business: Even if you have researched about the product and market and know sales forecast, most of the times it doesn’t go as per the plan. So, don’t stress about the profit every time instead try to clear out the slow-moving inventory as soon as possible.
How to strategically reduce the slow-moving or excess inventory?
Below we have listed some of the best ways to remove that dust collecting inventory form your shelf
Sale! Sale! Sale! :
Sale, if done in the right way, may help you remove all of your slow-moving and excess inventory. But if you are displaying a sale every week, then the shoppers would be habituated and your product sale would lose that appeal and effectiveness. Let’s have a look at a few types of sale that you can run. While running the sale for slow-moving products consider offering discounts between 30-70%.
CLEARANCE SALE: Slash out lower prices and shout loud on your website and social media about the clearance sale. If your product is about 4-6 months old then it’s the right time to flush out the stock. Reach the audience via social media and personalized emails. Depending on the previous shopping you can recommend your shoppers about the product they prefer most through a personalized mail. For example: If a shopper has bought 10.5 size shoes then you can suggest them a similar product with more discounted price.
FLASH SALE: The fear of missing out has a Psychological effect on Customers and so this makes the flash sales the best way to convert your slow-moving inventory into cash. Notify your customers via email about the limited time of the sale. This will awaken the urgency among the customers. To build the anticipation send emails with reminders after a few days. Also, set a promotional banner on your website about the flash sale.
SPECIFIC ITEM SALE: Some of the products sometimes doesn’t yield much response even though you are providing higher discounts. Here you have to narrow down the focus to a particular shopper who will buy this product type. Put on a sale that is aimed to focus on these particular shoppers.
SEASONAL SALE: A change in the season means the product demand is changing as well. This is the right time to market in front of the bargain hunters who are looking for deals and are ready to buy the products of the previous season. Display big banners and let the bargain hunters know about the deal you are offering.
Remarket and Reposition
Some of the products might not be selling even if you have put a lot of effort and money for marketing it. In that case, you should freshen up your product marketing strategy in order to convert this excess inventory to cash.
Take new product Photos: Product photography is extremely important while you are selling on your eCommerce store. Give your old product a fresh look and click new product photos. The product photos should be of high quality, the product should be shown from multiple angles, you can also throw in a lifestyle shot to play on emotion. Don’t worry, you don’t have to master yourself for the photography, check out this link For easy and inexpensive product photography methods.
Change the location of your slow-moving items on your site: Have you ever thought that if your products aren’t selling it might be the reason for its wrong placement on your site. Visibility, as well as accessibility, improvements, can help to move your slow-moving inventory. You can do this, by entirely creating a new landing page or moving your slow-moving inventory items to different categories or sections of your site.
Insert new keyword in the Product Description and Title: If you are unable to convert your excess inventory to cash even after months then it’s time to give the copywriting on your website another go. This time make sure your contents are in line with the SEO terms.
Apart from offering discounts, the most preferred methods by the retailers for attracting customers is bundling. Bundling is when you take a group of products and sell them in a bundle with a slightly lower price. Here, you can maintain your profit margins as you sell different bundled products.
Let’s have a look at how to make bundling successful:
Bundle the slow-moving products with one or two fast moving products: This is a common tactic where you can make your slow-moving inventory more attractive. You can bundle your slow-moving products with the items that are in high demand in the market. Thus, your every sale would be of a good amount that would help you to flush more units and convert your excess inventory to cash.
Bundle Complementary Products: Suppose one of your slow-moving items acts as a complement to another product, then you can bundle those two products and sell it at a discounted price. For example, your bread baking tray is selling well and measuring cup isn’t selling well. Then you can bundle these two products and sell it at an attractive price.
The above things listed when applied step by step may work. But still, if it doesn’t work out for you then the next step is to provide your audience with freebies like a discount coupon for another shopping with your slow-moving product. Implementing the above tactics may also give you some more ideas and help you to sell the slow-moving products in more creative ways.