Before and after the build-up of festive season, great sales, consumer buying frenzy, brand offers and online sales festivals, comes a period when almost every business goes through a slowdown! The supply chain plans bullish for ‘the period’ when they it to reach more than 30% of its annual sales during such periods. Occasionally they go a little overboard in stocking goods and hence the capital investment in inventory, among other aspects.
In today’s business scenario, sellers have been innovating new marketing techniques to make their businesses faster, easier, and more convenient for their buyers. Consumers crave easier methods and ways of making a purchase and the same goes for returns. Free returns, 2-day shipping or quick in-store returns, the faster the better, especially during the ‘Great India Sales’ seasons.
All this amounts to huge pressure on inventories once the hype is over. From here, sellers reconcile their actual realizations during the sales period and more often the conclusion is a situation where they need to find outlets and opportunities to maximize profits and returns on the unsold, excess, ageing inventories.
Some of the ways that sellers can deploy to maximise profits during a lull period are as listed below: -
- Announce A Surplus Sale!
Clearance sales, flash sales, seasonal sales, and sales on specific items, among other strategies can help clear out the stock and simultaneously make money. Offering an opportunity to consumers through a Surplus Sale Period is an effective way of reducing inventory, especially for the B2B segment. Such surplus sale in the B2B Line of Business benefits the whole supply chain and prepares the next up-cycle for maximising profits.
- Market 2.0! Push for better marketing & information to sell unsold inventory
Sometimes the excess inventory may not sell because of the way it is being marketed. Remarketing the product in an effective manner would be a good way to begin. Adding new images of the product(s) with fresh looks, placing items on new places on the site, and using keywords for the product title and product description are some of the proven ways to increase sales and clear out excess ageing inventory. Rejig when things being to look stale. Presentation has a definite impact on the way consumer perceive products while making a purchase.
- 1+1 = 11 - Bundle products
Bundling up products is the most popular pricing method (besides discounts), which can help maximize profits from excess, overstock ageing inventory. Bundling is basically grouping a few products to create a set and selling them together at a price lower than at their individual prices. Some of the best hacks in bundling are, to group the fast-selling products with the slow-moving products, to bundle multiple units of the same product, and to bundle complementary products, among others. For example, bundling a high quality ear-phone with an aggressively priced laptop is something a consumer may find more value in thus inducing purchase. One of our sellers recently utilized this strategy to successfully expedite sales with amazing results.
- Best Bet! Check out platforms / marketplaces which liquidate excess, ageing, overstock Inventory
An excess inventory platform will buy all your excess or unsold products with market accepted offers, will ensure capital is unblocked. Furthermore, an online marketplace like Excess2Sell will do it Confidentially, Anonymously & Neutrally without disturbing your current market operating price to get you the best deal. Moreover you choose the Minimum Order Quantity (MOQ), Method of Payment (MOP), and Location & Terms.
All businesses have to face the situation with Overstock, Ageing, Excess and old inventory during a slowdown. However with the tactics listed above, one can definitely clear out the shelf space and thereby earn revenue in the process.
The article has been penned down by Rajan Sharma, Founder & CEO, Excess2Sell.com