Are you stuck with a bunch of extra inventory? Are you unsure what to do with it all? If you have piles of product that aren’t bringing you any income, here are a few tips on what you can do with your excess product.
Prevent excess product accumulation in the first place.
The easiest fix for excess product is to stop piling up excess product. Essentially, it’s time to take a look at the patterns you can identify in your business and how your customers buy and when. You’ll need to improve your forecasting methods and assess past business data to determine what products are in demand and what products aren’t so in demand. Of course, even the best forecasts can be wrong and you can still end up with way too much inventory. In that case, read on for some more tips on what to do with it all.
Host a sale or put some of the products on clearance.
Marking down the products is a good way to grab the attention of your customers. You can either do a mild markdown of 10 to 20% or go all out and do a clearance of the items and mark them down 50% to 75% or more. If you have your items on clearance for a long time and they still don’t sell, it’s time to take on a different solution.
Send them back to the product supplier.
Suppliers will often credit you for returns provided the products are not broken and are in resalable condition. If you negotiate with a supplier for a guaranteed sell through of the product, when the product does not sell, you’ll be able to get a credit for it.
Charitable donations are tax deductable.
You can give the excess product away and still not take a total loss for it. When you give away product to a non-profit organization, you’ll end up getting a 501©3 charity tax write off. The write off you get is the fair market value of the product at that moment or the original price, whichever is the lesser.
Liquidation companies buy overstock.
Liquidation companies buy up overstock and resell it to merchants and consumers at discounted prices. You’ll end up getting pennies on the dollar for your merchandise, but your inventory will be cleaned up and you’ll get a bit of money for the excess product. Typically, stores turn to liquidation companies as a final resort when closing.
Offload excess products online through various marketplaces.
Online methods of selling, including eBay, Amazon, and BoxFox are all ways to sell off excess inventory to online shoppers. Just bear in mind you’ll be responsible for listing the products, photographing them, managing the orders, shipping the product and ensuring delivery to the customer.