How to sell excess stock?
In the United States alone, the secondary market for excess and returned goods was estimated to be over $644 billion in 2021, according to the Reverse Logistics Association.
How a brand manages it's excess stock can make the difference between success and failure. With too much stock hanging around for too long, the money tied up in stock can restrict a brand's ability launch new products which prevents new customers and sales and, in extreme cases, paralyse cash flow to such an extent that it puts the brand into liquidation as a whole.
On the other hand, if a brand manages it's excess and overstocks efficiently, losses are reduced, storage costs are minimalised and money is released from stock to fund new products and general expenses.
ASOS, the online retailer, had over £1bn of excess stock at one stage which had a detrimental impact on the entire business.
8 ways to sell excess inventory
Selling excess stock efficiently involves several strategies to minimise losses and maximise returns. Here are some effective methods:
1. Discount Sales
- Clearance Sales: Mark down the prices significantly to attract customers.
- Flash Sales: Offer limited-time discounts to create urgency.
2. Bundle Products
- Product Bundles: Combine slow-moving items with popular ones to boost sales.
- Buy One, Get One (BOGO): Encourage customers to buy more by offering deals on multiple items.
3. Online Marketplaces
- eBay, Amazon, Etsy: List your excess stock on popular e-commerce platforms.
- Specialty Sites: Use niche marketplaces that cater to specific products.
4. Wholesale
- Bulk Sales to Other Retailers: Sell your excess stock in bulk to other businesses.
- Liquidation Companies: Use companies that specialise in buying and reselling excess inventory. liquidation.store is a specialist excess stock purchaser and subsequently creates flash sales to the public to sell the stock quickly.
5. Promotions and Incentives
- Loyalty Programs: Offer excess stock as rewards for loyalty program members.
- Gift with Purchase: Include excess items as free gifts with other purchases.
6. Repurpose or Rebrand
- Repackage: Change the packaging or branding to make the stock more appealing.
- Use as Marketing Material: Give away excess stock as promotional items.
7. Seasonal and Event-Based Sales
- Holiday Sales: Tie in excess stock sales with holidays or special events.
- Themed Promotions: Create special events around the products.
8. Charitable Donations
- Donate to Charities: Offer your excess stock to charitable organizations for a tax write-off.
- Community Events: Sponsor community events by donating your excess products.
Tips for Effective Selling
- Analyse Market Trends: Understand market demands and adjust your sales strategies accordingly.
- Customer Feedback: Use feedback to improve future purchasing decisions.
- Inventory Management: Implement better inventory management practices to prevent future overstock.
Conclusion
Selling excess stock requires a combination of strategies tailored to your specific market and product type. By using discounts, bundling, online marketplaces, wholesaling, and other innovative methods, you can effectively clear out excess inventory while maximizing your returns.
If you'd like to sell your excess stock quickly, feel free to drop the team at liquidation store an email with what excess stock you have available to info@liquidation.store
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