Avoiding excessive inventory is high on any retailer’s list. It can tie up capital and take up valuable store shelving and storage space. Additionally, it can prevent purchasing products that are high in demand to keep your business competitive. Paying close attention to keeping your inventory in line equips you to make smarter decisions for your future purchases and marketing strategies. If you have excess inventory that needs liquidation, here are some helpful tips to eliminate your surplus.
Remarket and Re-Merchandise
When items are moving slowly, evaluate the issue’s root. It may be necessary to reconsider your marketing and merchandising efforts. Take fresh photographs for your website and add a blog with creative insights into how to use the product. For your brick-and-mortar location, move items strategically in your store with bright signage to attract attention in multiple areas. These are great strategies to give your products a new look to existing customers to create awareness of the items in their last location.
Utilize Retail Inventory Solutions
Whether you are receiving your inventory through purchasing or donations, you need an adequate and accurate tracking system to manage your items to stay on top of your profits. The right system will allow you to understand your inventory’s ebb and flow. Implementing an industry-specific point-of-sale (POS) system will help you keep up with the unpredictability of your items. Using a pos system for resale shop software will dramatically improve your organization to help boost your sales with additional promotional features to keep your products moving. It will sync your online and in-store products to streamline and optimize sales performance.
Offer Incentives
Offering freebies or incentives is an excellent way to eliminate your low-cost items that are difficult to sell. For instance, try offering a gift to customers who spend a particular amount or as a bonus when signing up on your email list. Create signage to promote your efforts outside your store to increase foot traffic and add these promotions to your website. Attach an offer that applies only to a customer who purchases a high-end item to increase your revenue and help to optimize your inventory.
Discount Strategically
There are several options to use when it comes to discounting your merchandise. They can offer significant advantages to your business when done correctly. Begin with small discounts on individual items and gradually increase the amount over time. Create some urgency with a flash sale event or a store-wide sale if you have a large amount of inventory. A high-impact event will instill ideas in customers that you have items they need to purchase while they last.
Bundle Products
Next to discounting, bundling products together is a valuable technique. Combine particular items that make sense and offer a lower price when purchasing the items together rather than separately. It will increase your average order value and move your merchandise to clear your surplus inventory. Try bundling slow-moving items with products that typically sell fast. Offer complimentary items in a bundle to increase their value, or if you offer things that come in multiple colors, bundle them together to see if you can inspire customers to purchase more of the merchandise that interests them.
Execute Employee Engagement
In addition to marketing and discounting your inventory, your staff is vital in how quickly items sell in your store and during their online communication through your website. Motivate employees to engage them in your business with proper training and create appropriate incentives for their efforts. Recognizing your staff for a job well done can go a long way, so be sure to let your team know when they are doing a great job and encourage all employees to recognize each other the same way. It will provide a positive work environment that will reduce your staff turnover. Increasing staff morale in your store will empower your employees to sell your merchandise with pride, thus increasing sales and setting you apart from your competition.
When appropriately managed, you can open up opportunities for your business. It can create more sales opportunities and increase customer engagement in your industry. Paying regular attention to your inventory and sales will help you gain control of your merchandise and avoid an overabundance in the future. A good marketing strategy will increase your profits, and you will see growth in your customer base allowing your business to thrive.
