Five Options to Clear Out Surplus Inventory

Published: 29th April 2010
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Slow-moving inventory is the nightmare of any retailer. Though the merchandise is of high quality for some reason or other it refuses to budge out of the store. It's an eye sore for some customers in the sense that being the store's loyal customers they are familiar with almost all the items in the store. And therefore, if the same item is seen year after year it creates a bad impression about the store in the minds of the customers. On the other hand, by clearing this excess inventory retailer would be able to offer something new, fresh, and exciting for its customers, every time.

Now there are several ways by which this slow moving inventory can be cleared. Here are some of them:

* Offer Discounts

A great way to clear out slow-moving inventory is by offering discounts on the items. Slashing prices or offering it as freebie along with other items can help in bringing more sales.

* Consignment Companies

The retailers can dispose their excess merchandise by delivering it to the consignment companies in return for a percentage of the profit.

* Resale Shops

Donating to resale shops can help not only in clearing out the surplus inventory but also in getting tax reduction for the retailers. Resale shops are actually managed by charitable organization with the aim of raising funds.

* Liquidating

The excess inventory would be taken care of by the liquidators in return for cash.

* Sell Outside

In countries where there are strict rules in place in order to prevent retailers from disposing excess merchandise by offering it at prices they like, the only way left would be to sell in those countries where no such regulations exist.

* Online Auction Sites

Retailers can make money online by auctioning their excess inventory at wholesale auction sites such as eBay, and so on.

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