{"id":2291,"date":"2020-04-06T10:42:50","date_gmt":"2020-04-06T15:42:50","guid":{"rendered":"https:\/\/www.rmservicing.com\/?post_type=articles&p=2291"},"modified":"2020-04-06T10:42:51","modified_gmt":"2020-04-06T15:42:51","slug":"5-ways-to-get-rid-of-excess-inventory","status":"publish","type":"articles","link":"https:\/\/www.rmservicing.com\/articles\/5-ways-to-get-rid-of-excess-inventory\/","title":{"rendered":"5 Ways to Get Rid of Excess Inventory"},"content":{"rendered":"

The holiday shopping frenzy will wind down soon and retailers will be left with all the inventory that didn\u2019t find a new home this year. Or at least, not yet. Despite the best efforts of retailers and brands, inventory supply never aligns perfectly with consumer demand. Either it is underestimated how much inventory is needed and items sell out before the season is done or sales are overestimated and there is excess inventory at the end of the season. Leftover inventory can be difficult to deal with and can hurt profit margins for both brands and retailers.<\/p>\n

How Excess Inventory Hurts Brands and Retailers<\/h2>\n

There are a handful of reasons why you might have leftover inventory. Maybe you simply overestimated how much product you\u2019d sell and now have a surplus. Maybe the retailer\u2019s automated forecasting and allocation system wasn\u2019t fine-tuned resulting in pockets of inventory in the store chain. Whatever the cause is, the result is the same: excess inventory.<\/p>\n

These items cost you money to produce, package, ship, and get into the retailer in the first place. Now, they\u2019re taking up valuable inventory dollars at your retail partner and taking up shelf space.<\/p>\n

You can cut down on excess inventory in the future with better forecasting and retailer allocation. However, if you\u2019re stuck dealing with excess inventory now or will be after the holidays, continue reading to learn how to get rid of it.<\/p>\n

5 Ways to Deal with Excess Inventory<\/h2>\n

First, decide what is considered excess inventory. Generally, it\u2019s defined as inventory levels that are higher than the planned sales turn. Since every product is different, you\u2019ll need to decide with your retail partner. Once you have determined that you have \u201cexcess inventory\u201d you need to decide what to do with it.<\/p>\n

1. Do Nothing<\/h3>\n

If your products don\u2019t expire or are not seasonal you may be able to leave them where they are. This tactic works best for non-perishables and household staples, like detergent, that people need year-round. If your products fall into these categories, great! However, be sure that no matter what type of item you supply, you\u2019re consistently checking your inventory turnover rate to ensure that your products are selling as they should. If you have a surplus, you may need to hold off on your next shipment to get your inventory levels back to where they should be.<\/p>\n

2. Returns<\/h3>\n

Consider making a deal with your retail partner to return any excess inventory to you. This is especially useful if you believe you can resell it. Make sure that you\u2019re factoring in the cost of the return, storing, restocking, and all other associated expenses to see if this is worth it. This works best if you can easily repurpose or resell your inventory. Maybe you just need to repackage it or can ship it to a different location.<\/p>\n

3. Reuse, Recycle, Regift<\/h3>\n

If you can\u2019t sell or reuse your excess inventory, you could consider disposing of it in a responsible way, preferably recycling whenever possible. Make sure that any inventory that you don\u2019t sell is recorded so you can write it off and at least recoup some of your inventory cost.<\/p>\n

Also, think of unconventional ways you can deal with your inventory. Donate it to charity, gift it to your employees, or look up recycling programs near you. Most of the time you can still take the write-off with these disposal methods. Even better, you can help make someone\u2019s day or use it as an employee morale booster to increase employee engagement.<\/p>\n

4. Sell it NOW – Discounts!<\/h3>\n

You can still try to sell your extra inventory, even if they\u2019re past their holiday prime. One effective method to do so is by using Instant Redeemable Coupons<\/a> (IRCs). These coupons are physically placed on your inventory while they\u2019re still in the store. They can be eye-catching and draw shoppers\u2019 attention. Plus, people love a deal.<\/p>\n