Supplying stock is one of the most crucial aspects when it comes to running a sales business and offering customers a reliable service. Using automated systems for restocking, setting reorder points and of course forecasting the customer demand and market trends are some reliable strategies to consider when the time comes to replenish the inventory. Still, despite these strategies, it’s possible to overdo it, leading to an issue known as excess stock. 

What Are the Risks of Holding Excess Inventory?

Unless you consult and get the services of inventory experts to sell excess stock, it can be as much of a headache as stockout or undersupply. The excessive stock equals to tied cash which is where the problem lies. And, this lack of cash flow prevents you from using it elsewhere for other, perhaps more valuable, investments. 

While not always the case, sometimes it can also lead to expired stock, obsolete stock and stock that’s no longer in customer demand, serving more as a waste of money rather than inventory considering it hinders your business growth. Goods that are left at the mercy of time can undergo changes, fade in colour, get damaged, rot, all of which makes them unsellable and turns them into deadstock if you will. 

The result from this? Massive trash thrown into landfills, which would explain our issue with waste on a global scale. Then again, excess stocks can also result in a storage cost problem, occupied and unorganised warehouse space that affects future stocking of other goods, a reduction in productivity and an increase in the labour needed to manage it. 

How to Handle Excess Inventory?

Avoiding overstocking in the first place is an important step towards preventing both deadstock and money going down the drain. However, there are other ways you can handle this inventory issue as well. 

Look for AI-Powered Excess Stock Solutions

Turn excess inventory into revenue by hiring expert help to sell excess stock with AI-powered pricing strategy and margin optimisation. Unlike traditional high-volume liquidators and single bulk purchasers, the modern AI-powered alternative partners are here to help you recover more of your working capital than the standard bulk buyout thanks to strategically syndicating the stock across private and global marketplaces where the demand is higher. 

With such partners, no inventory is too big to be handled across networks with the right digitalised infrastructure – including canceled B2B orders, wholesale orders, seasonal overruns, warehouse consolidations, relocations, and raw materials. Instead of risking flooding the local market all at once, there’s use of diverse channels. This, paired with full transparency on where exactly the stock is being sold, gives you the control you need and the protection for your business in the long run. 

Try Discounting 

Sometimes, the answer to the inventory excess can be as simple as discounting the items you most often see end up sitting on the shelves. Sometimes, it’s due to customers not having the budget to afford them, and other times it’s not having the chance to spot these items as opposed to other more attractive or trendier merchandise. Discounting is the perfect idea for when you need to upgrade the seasonal stock. Limited time sales, clearance events are all examples of how you can make the products sellable – even ones that aren’t that trendy. 

Incorporate Bundling

Have stock of products that are slower to sell? Try offering them in a bundle with other more popular products at a more appealing price. This way, you nip the deadstock issue in the bud and make sure customers are more inclined to buy them, especially given the bundle price. If all else fails, you could always offer them as a reward to the most loyal customers, or with any order at a certain amount, for example. Who doesn’t appreciate being valued and pampered with a gift every now and then?! 

Come Up with Other Strategies to Attract Customers

Among the other investments you can make, place your bet on automating the management of the inventory to simplify the organisation in the warehouse. This can give you more insight into what needs restocking, and what could do with some stock selling strategising we mentioned. 

In some cases, the problem with not reaching the target audience can be in how your products are being presented and sold. A little change in the website, specifically the product listing and upgrading it with popular keywords, plus adding more payment options and expanding the platforms where you sell can work wonders for the inventory and business. 

Other ideas you can implement include adding changes to packages with something more picture-worthy, trying social network trends, making fun and creative vlogs or presentations about the products, or upgrading old photos with new ones to make even the smallest details more noticeable. You’d be amazed at the increase in customers these small steps can bring about.