11 Ways to Deal With Dusty Inventory Without Taking a Loss
E-commerce retailers constantly face the challenge of finding the perfect balance between having enough products in stock and avoiding excessive surplus inventory.
Maintaining excess stock not only ties up valuable working capital but also costs U.S. retailers a staggering $650 billion each year in inventory carrying costs, which accounts for approximately 11% of their retail revenue.
On the other hand, leaving shelves or warehouses empty can result in missed sales opportunities and dissatisfied customers.
Achieving the delicate equilibrium between supply and demand is an art that many retailers struggle to master.
When supply surpasses demand, overstock and obsolete inventory start piling up. If not managed effectively, this surplus stock can significantly impact profits.
Even a mere 5% overstock rate can lead to a reduction in gross margins by 25% to 35%.
However, with the right strategies in place, retailers can proactively address surplus inventory before it becomes a costly issue.
This comprehensive guide offers 11 valuable tips to help identify and manage overstock products.
By clearing out stagnant inventory, you can can free up valuable capital that can be reinvested in fresh, high-demand products.
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