Tips for getting rid of excess inventory in your store
When inventory levels exceed forecasted demand, then we can use the term excess inventory or overstock. Usually excess inventory happens when you purchase more product than you sell or there is no demand for your products or no proper product marketing or no proper inventory management, etc. If you have excess stock in your shop, you need to always solve the storage spaces and costs, service costs, capital costs, product expiry issues etc. Anyway, as a small shop owner, excess inventory or overstock will create headaches for you because it will affect your profitability, especially for non-moving products.
Here, we can discuss about how we can get rid of excess inventory in your shop.
1) Highlight products, or remarket:
When an item is not selling quickly, you need to change your marketing techniques. You can highlight the excess products on visible areas of your shop or display the excess products on different areas of your shop. This will give more attention to that product. Also, you can remarket that excess product or items by using different advertising methods like traditional or digital ads.
2) Run offers and sale events:
With the help of conducting sale events and running offers or promotions for excess products, we can get rid of excess inventory. Sales are a proven way to attract customers. So, you can run a weekend sale or one day flash sale and give offers to customers for this excess inventory products.
3) Buy One Get One type promotion:
One of the most common and popular form of sale promotion is buy one get one, because consumers perceive free stuff to be more valuable than discounts. If you have excess inventory and that you want to clear out, this buy one get one type promotions could be a good option.
4) Bundle items/products:
To get rid of an excess inventory item, you can bundle your non-moving or excess inventory item with fast moving items. Also, you can bundle multiple units of same items with some discount.
5) Free shipping and Free gifts:
It’s a good idea of offering an item from your excess inventory as free if customer buy an item or spend a certain amount of money for a particular product. Also, you can try a free shipping option for excess inventory products.
Now we can discuss about how can excess inventory be prevented.
1) Use a Point of Sale system:
To prevent the excess inventory in your shop, initially you need to invest some money for buying a good Point of Sale system. If you are running a retail store or supermarket or even textile shop, you can track and manage the inventory with a good point of sale (POS) software. In today's fast-moving world, you will require a modern point of sale software like IVEPOS. It is an ideal POS software for small businesses. By using this IVEPOS you can always manage your inventory. IVEPOS will track inventory in real time and also you can set stock levels and receive low stock notifications etc.
2) Always observe the market trends:
If you are running a business, then you need to always analyze market and trends. If you have this observation you can get a good idea of each products current trends and based on that you can stock products.