Overstocking is among the most typical difficulties faced by retail businesses. Its most visible effect is the space and storage cost. The consequence is revenue loss. When you face issues related to surplus stocks, you can try and liquidate inventory. This post will define inventory liquidation, its strategies, and how to prevent having surplus stocks.
What is inventory liquidation?
Inventory liquidation refers to the process of eliminating excess inventory. As you know, overstocking goods costs you money. You cannot recover the investment except if you manage to sell the items. This can turn into a super challenging situation in case you fail to find the funds to take the place of surplus inventory with new goods. By figuring out the proper ways for inventory liquidation, you will get profits from your investment.
Strategies to liquidate inventory
How about you try to remarket them? In some cases, when an item is not producing adequate sales, it is likely not because of its quality but how you position or market it. To remarket the products, you can try moving overstocking goods to a place whose visibility is higher, for instance.
Use Clearance Sales to liquidate inventory
Making use of clearance sales is another best way to liquidate inventory. The approach has to do with providing shoppers with a discount on the buy. For example, begin with 40% off these items. You can slowly raise the offer to 60% to 80% to attract customers.
Sell excess stocks to liquidation firms to liquidate inventory
Liquidation enterprises such as B Stock Supply and LiquidateNow are those purchasing back goods that other firms failed to sell at lower prices. After that, they resell them using their company name. In other words, you will sell the surplus stocks at decreased prices compared to the prices you purchased from the supplier. While losing margin, you work to generate more space in your shop.
How to prevent having surplus stocks
Use an Inventory Management System
Reportedly, almost half of small-sized companies fail to have decent asset and stock control practices. See to it that you are not one of those firms. By how? Make use of a modern inventory control system like ConnectPOS. The solution does a good job of transforming the whole operations and keeping surplus stock problems at bay by making your stock control process automatic. Some of the notable features of ConnectPOS for you to manage your warehouse include multi-warehouse management with the Multi Source Inventory app.
Track your sales
A decent inventory system lets you know about your sale rates and stock levels. Over time, it is money saving. We suggest generating plans to deal with every section of the chain. Issues in a place can impact other parts of the procedure.
Above are some of the best ways to liquidate inventory without harming your retail business. The key to successful stock control that prevents surplus stocks is to leverage ConnectPOS or other most trusted stock management systems. It assists you in smoothing out the inventory and decision-making related to buying from suppliers. For more information about the solution, contact us.