10 Strategies How to Get Rid of Old Inventory
If you’re a business owner, chances are you’ve faced the problem of excess inventory at some point. Maybe your product didn’t sell as well as you thought it would, or maybe you simply ordered too much stock. Whatever the reason, being stuck with extra inventory can be frustrating. Luckily, there are plenty of ways how to get rid of old inventory.
In this blog post, we’ll share 10 of our favorite methods on how to get rid of old inventory. Whether you donate it, sell it at a discount, or use it for marketing purposes, getting rid of deadstock doesn’t have to be difficult!
What is excess inventory?
Excess inventory is simply inventory that is not needed and is taking up space and tying up cash.
If unsold stock is not moved, it will lose value and deteriorate.
If it hasn’t sold for a while, then it’s time to get rid of it. It will go in the deadstock pile and won’t be counted in the company’s budget.
The main issue with having excess inventory is that it can be really hard to sell the products that you have. If demand is lower than what you expected, then you can be stuck with a lot of products that no one wants to buy.
Excess inventory can be outdated, damaged, or simply not selling. Excess inventory can tie up your capital and prevent you from investing in new, more popular products.
Having too much stock on hand can often lead to a loss in sales.
They say that you can have too much of any good thing. But when you have extra inventory of a product that you just can’t get rid of, you’ll probably disagree.
Inventory management can be a tricky task, especially for small business owners.
You don’t want to have too much stock on hand, but you also don’t want to sell out of a product too quickly.
Science-based inventory management can cut your inventory cost by up to 20%, even on a made-to-order basis.
Small businesses that manage their inventory well are more successful than those that do not. This is evidenced by the fact that businesses with low inventory and high turnover are more successful than those with high inventory and low turnover.
If you find yourself with a surplus of inventory that you can’t seem to sell, it’s important to take steps to prevent it from becoming a financial burden on your business.
Our guide will help you navigate excess inventory so you can keep your business running smoothly.
How to Get Rid of Old Inventory in 10 Ways
Regardless of how small your operations may be, your business will almost certainly have a surplus of stock at one point or another.
The root cause of excess inventory may be due to purchasing too much, or an overly optimistic forecast. However, unforeseen shifts in the marketplace or technology may also result in overstock.
In the majority of cases, you won’t recoup all your expenses. But at the very least, you can stop the bleed from holding costs and slow the depreciation of your inventory.
Some disposal methods are better than others depending on the stage of your manufacturing process. Some techniques work great with raw material, while others work better with finished products.
The options available for reducing excess inventory will be limited by the type of inventory.
Here are 10 ways to help you reduce any excess inventory of products.
1. Inventory Liquidation
If you’re looking to sell your inventory quickly, then inventory liquidation might be for you. Liquidators can buy up your entire stock, or they can just purchase the surplus.
2. Outlet Stores
If you have an outlet store, you can make more money than your retail store.
Create your own online discount store where you can sell excess inventory, closeout items, or refurbished products.
3. Multi-Channel Marketplaces
The more marketplaces you sell on, the better! We recommend having your product listed on 20+ marketplaces at all times.
The right technology makes it easy to manage listings and keep them consistent with brand guidelines across multiple marketplaces.
4. Dynamic Pricing
If you’re looking to improve sales, one of the best things you can do is implement dynamic pricing. This will allow you to adjust your prices according to demand, which will help you move more products and optimize your revenue.
5. AI-Driven Pricing
True artificial intelligence can continually optimize and improve your prices. It can continually monitor over 1,000 websites for pricing and updates your prices automatically.
6. BOGO Sale
A buy-one-get-one (BOGO) deal is a fantastic way to sell extra merchandise. These sales are very popular with customers and they help clear out your warehouse of unwanted items.
7. Bundle and Discount
Grouping similar products and offering a good discount can move your surplus goods fast.
8. Flash Sale
A great way to clear out your stock is by hosting a flash sale. By slashing prices for a short time, you can encourage customers to purchase immediately. This is a good option if you have a lot of old, unwanted products.
9. Offer Freebies
Incentivize your current customers to bring their friends by offering your products as freebies. People are always looking for a good deal, and this is a great way to get new customers while giving your loyal ones a little something extra. It’s a win-win situation for everyone involved!
10. Reward Your Loyal Customers
Give your most loyal customers your extra stock as a way to say thank you for their continued support. They’ll appreciate the gesture and be more likely to continue doing business with you.
They’ll tell their friends about you, who will then sign up for your newsletter and become warmer prospects for your sales team.
If you’re stuck with excess inventory, don’t worry! There are plenty of ways to get rid of it. Our list of how to get rid of old inventory can help you dispose of unwanted merchandise. Whether you donate it, sell it at a discount, or use it for marketing purposes, getting rid of old inventory doesn’t have to be difficult!