In the world of online business, not every product a seller has sourced and stocked will actually sell. Regardless of how flawlessly your business is running, it’s almost inevitable to have dead stock in your inventory.
Even the best-selling products that seem to have a continuous demand despite the asking price or season can become dead stock at some point. The main causes of an overstock or dead stock issues are making inventory purchases without conducting sufficient market research.
Here is a quick guide on how to deal with dead stock.
Bundle Some Items Together
Trying to keep marketing the dead stock might eat into your valuable time that you could have dedicated to activities such as promoting your online store. Therefore, consider bundling your dead stock with more current items and sell the bundled items at a discount.
This is one of the easiest and fastest approaches for getting rid of the freeloading dead stock in your inventory. While your profit margins might be compromised, it’s better to recoup the cost of goods rather than incur the hidden cost of storage.
Use The Dead Stock To Increase Sales
Consider creative ways of encouraging potential customers to buy more current items from your store by giving out giveaways or gifts with purchase. This is another way of encouraging impulsive buys in your store and boosting sales.
For instance, you can give purchase incentives by giving out a free gift with every purchase of $50. In other words, you take advantage of the fact that people love grabbing free things, to boost your sales.
Although shoppers will normally not be willing to pay full price for items they don’t need, they’ll be ready to grab those items if they see a discount or if the items are given out as free gifts for shopping.
Therefore, in the long run, you’ll get your customers to spend more while at your store.
Return Items To Your Supplier
Sometimes, due to relying on misleading product data, you may end up sourcing the wrong products. Consequently, it becomes impossible to sell the dead stock to the wrong target market no matter how attractive your discounts or deals may appear.
If the market of the new products you just sourced from a supplier doesn’t overlap with your target audience, it’s time to consider returning the products to the supplier.
As long as there is enough room in your policy, you can easily convince your supplier to take back the slow moving items. If necessary, you can even sell the items back to the supplier.
But, do prepare yourself for the prospect of incurring a small loss when returning an overstock to your supplier.
If you realize that a bunch of your items such as clothing didn’t sell when in season, they’re not likely to sell now. The option of donating dead stock to people in underserved communities is a little more country-specific.
So, instead of throwing away these items in the name of spring cleaning your business, consider donating them to the people who may value or need them.
There are millions of charities across the world who are willing to accept your dead stock as a donation. Donating is always a good thing and you may also qualify to get a tax write-off if your tax jurisdiction allows it.
In the case a certain percentage of your inventory becomes dead stock, you’re likely to experience substantial losses. In fact, the capital tied up in the overstock is money better spent on fast selling products.
Furthermore, the cost of storing those goods in a warehouse safely and securely can quickly add up. Therefore, it’s important to implement the most effective strategies of dealing with dead stock as soon as possible before the problem escalates and becomes too costly to manage.