In preparation for the busy summer season ahead, taking time to assess and plan is a worthwhile use of your resources and has many benefits.
With the lull of the spring season, excess inventory stock can be an issue for retailers. Many businesses will wait to see if excess items will sell to justify their investments, however everyday that old inventory sits unsold, you lose money. It is time to clear off that excess stock and help reduce issues of excess stock!
Ways to help overcome excess inventory stock in the first place is to start tracking your past sales. Look at the sales volume by month and think about special events or holidays that may correlate with major dips and peaks. It may be time to think about an inventory management system that allows you to have access to analytical tools that can give you a snapshot of historical trends, in turn, helping you to make better inventory stock ordering decisions for the future.
Understand your inventory stock through different channels
People tend to shop differently in different places and this can affect stock levels. If a particular product is performing well in one sales channel but not the other, consider moving inventory stock to the better performing sales channel.
Automate the ordering process
Inventory management systems are important to the business as they enable accuracy and speed up business processes. For example when inventory stock moves faster than expected, a good inventory management system can create a low inventory stock alert, allowing you to order quickly from suppliers.
This can be more reliable than manually ordering inventory stock and using a spreadsheet. This outdated method can result in human error where it may be easy to overlook an item. It doesn’t help your business understand how a particular product is trending.
Get creative with marketing
Get creative with marketing strategies that help move excess inventory stock along.
If a product is not selling on its own, try pairing it with a big seller item that is related. Bundling can be attractive to shoppers because they perceive to be getting a good deal, as long as it is attractively priced.
Before merely discounting excess inventory stock think about smarter ways to discount. Try offering discounts to current customers, or as a reward to them who successfully refer a friend to purchase an item. Other ways are to offer discounts only to new customers on the first item they purchase, but keep everything else full price.
Free shipping can often determine whether a person purchases from you or not. If you have an online store, try running a free shipping promotion on a specific group of products that you are trying to get rid of, and watch the results closely.
Excess inventory stock can negatively impact your bottom line. It is crucial to be aware of what is selling and what is not. These findings will help you form an effective strategy to eliminate that old inventory from your stock shelves and more importantly, ways to effectively manage stock so excess inventory stock is reduced in the first place.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.