Inventory management requires constant attention and is incredibly important to your business’s success. Yet, even the most successful e-commerce stores still run into problems every year getting lower-demand products off of their shelves. Closeouts and obsolete inventory are one of the biggest obstacles to small businesses trying to grow without having too much inventory. Closeout brokers can help keep inventory levels in check but it also requires constant selling. Following this simple guide, you will be armed with the tools you need to sell excess inventory during those slower months. For ecommerce sellers experiencing slow sales you may need to consider shutting down your Amazon account if sales are too slow.
Down time for sales often occurs in the early months of the year, as well as at the end of seasons when new products come into demand. Closeouts are generally available more at the end of the year than the beginning. Seasonal products that arrived too late are one reason for having obsolete inventory. Shutting down an Amazon account will result in having extra inventory at the Amazon FBA warehouse and this can be sold to closeout wholesalers, closeout brokers or other closeout websites selling inventory liquidations. Rather than clinging onto these items in hope that someone will suddenly purchase them, it’s best to find ways to clear your stock as quickly as possible, raise cash and make room in the warehouse for new products that are in more demand. Old inventory does not get better and the liquidation process will be the same. If you have a shipment at the warehouse that is a canceled order, or if you are going out of business by the end of the year, you should start cleaning the warehouse now.
The most obvious way is to clear out inventory is to discount old and excess stock. In order to create demand for these products, you’ll need to heavily discount your items and be willing to get rid of them to closeout wholesalers and closeout brokers who know what to do with them. Consider offering discounts between 35-70%. Yes, this seems like a lot and you may end up selling it at cost (or even a loss), but these products need to go! That way, you can look forward to future months and leave old and excess stock in the past. Effectively notify your shoppers of your sales with e-commerce promotions.
While sales are a great way to drive shoppers to purchase, it’s important to keep the frequency of sales in mind. If you have too many sales throughout the year, they may lose their appeal and effectiveness. Here are a few types of sales to focus on. Obsolete inventory can be sold quickly by having a flash sale which is only online and only for a limited amount of time. This inventory liquidation process is very effective and a great way to eliminate inventory quickly if you are shutting down a warehouse or reducing inventory.
This is an opportunity to flush out any stock that hasn’t sold in the past 3-6 months. Reach out to your shoppers via email and social. If you have data on a shopper’s sizes or product preferences, this could be the perfect time to hit them with personalized emails. If you can send me an email featuring size 10.5 sandals that are currently on sale, I’m going to be much more inclined to purchase. Another thing to consider is to have a clearance section accessible to shoppers at all times. This way, obsolete inventory is made available to bargain hunters who can check up on deals and you can post old inventory whenever you feel it’s time to clear the warehouse space. Closeout brokers and overstock inventory buyers are always looking for liquidation deals where they can make extra profit.
Urgency and FOMO (the fear of missing out) have a serious psychological effect on consumers, which makes flash sales for closeouts a slam dunk way to convert some sales. Be sure to notify your shoppers of a limited time sale. It’s important to build anticipation, so send out emails a few days before along with reminders. Notify shoppers via social media and set up an on-site promotion to create urgency on your site. Here’s everything you need to know about running a successful flash sale! Overstock liquidators have to always look for new and creative ways to move goods. The liquidation process and closeout process have been the same for so long that it may help to find another way to sell end of line stock and old seasonal products sitting in the warehouse generating dust on the boxes. If you need to move excess inventory out of the warehouse for new products, it is better to lose money and get rid of it than to let it sit in the warehouse and take up valuable space you could be using for new products.
A change in the season may mean that your product line is changing as well. This is a great time to market towards the bargain hunters who are actively looking for closeouts and deals and to make room for seasonal stock on your site. You can use a pop-up promotion to notify shoppers of their 40% discount after-Christmas sale. There’s also another gift-giving holiday on the horizon, with Valentine’s Day coming up in February. Start your marketing campaigns early for some quick wins. If you are shutting down your Amazon account and need to get products out of Amazon FBA warehouse, consider doing a removal order for all the excess inventory so you stop the bleeding and discontinue excessive Amazon storage fees.
Having too much inventory can place a financial burden on your closeout business and present operational challenges. Implementing a good inventory management system may save you from these. However, even when closely monitoring your sales and inventory data, you can find yourself with an excess of inventory. There is no perfect way to run a business and we all have our share of dead stock, canceled orders, overstock inventory that simply doesn’t sell, and we all need to move excess inventory out of the warehouse. This can sometimes arise from uncontrollable factors, such as a sudden change in trends. Whatever your situation, there are strategies to help reduce inventory losses and clear excess stock.
Running a flash sale for items with excess inventory can help create a sense of urgency and drive inventory reductions. This tactic also can increase customer growth, as flash sales usually help to attract new customers who are looking for wholesale closeouts and inventory liquidations. When offering a discount to get rid of overstock inventory, it is a good idea to start with a lower discount and increase to a greater discount, if necessary. This tactic will help to lessen the financial hit of excess inventory by cutting the price slowly to find the sweet spot for the demand. The goal is to reduce inventory in the warehouse so you have room to receive now products. Another important note about sales and discounts: time and implement them wisely. This means not running them so often that it trains customers to wait for sales or discounts before purchasing. Closeout buyers are always on the lookout for companies in liquidation and businesses selling off old inventory and discontinued products.
Enhancing online product listings can give customers a new perception of the product. You can highlight specific uses based on recent trends or events to prompt a customer’s need for the product. Consider changing the current description, details, and photographs to show the items in their best light and demonstrate how they can better meet the customers’ needs. Sometimes you can make simple changes that make old merchandise new again. It is only necessary to make inventory closeouts and excess stock once all other options have been used up. A simple image change may be all that is needed to catch customers’ eyes and prompt a purchase. Free shipping has become part of the norm when shopping online; it can be a deciding factor for consumers making a purchase. Consider applying free shipping to a product or product category that has excess inventory to help move these items. This is much cheaper than going through the liquidation process and dealing with overstock inventory buyers who will only be able to offer you a small fraction of the original cost. Surplus inventory buyers generally pay less than 50% of the original cost of merchandise. Selling excess inventory at a loss can be painful, but sometimes it is the easiest and quickest way to generate cash and make room in the warehouse. If you have too much dead stock sitting in the warehouse collecting dust, you may find you have to downsize the warehouse or completely shut down your warehouse if it becomes too costly to operate. Having too much inventory is pretty high up on the list of no-nos for closeout wholesalers. In addition to taking up precious warehouse space, surplus stock ties up capital and can keep you from re-investing in your business or buying things you actually need. That’s why regularly paying attention to your sales and inventory data is so important. You need to keep an eye on how products are moving so you can make the right purchasing and marketing decisions. At the same time, staying on top of inventory counts enables you to get a handle on the closeout merchandise you have so you can prevent having too much stock in your store.
Still, excess inventory problems can sometimes turn up because of things you can’t control. Perhaps there was a sudden change in what’s trending, or your demand forecasts didn’t pan out as well as you hoped. Whatever the case, don’t fret. If you’re looking at a surplus of merchandise in your arehouse, there are several steps you can take to liquidate them.
Merchandise USA is a reliable inventory liquidator in business 38 years. We are closeout specialists experienced in buying overstock inventory and excess inventory you need out of the warehouse fast. We are capable of buying any size liquidation stock for sale, and we take closeouts of housewares, toys and sporting goods. We buy excess inventory of lawn and garden products and garden closeouts. We are specialists in selling excess inventory and helping you through the liquidation process and closeout process. Whether you are closing your business, shutting down operations or just have liquidation inventory for sale we can help you clear out your warehouse.