Excess inventory can weigh down your e-commerce business and cut into your profit margins. Most e-commerce businesses will experience an overstock of inventory on several occasions, but do you know what to do if this happens to you?

Why does excess inventory matter?

There are many ways suppliers end up with excess inventory. They may have stocked the wrong product, miscalculated their demand, or are suffering from economic changes. While the reasons vary, one thing remains the same: that excess stock needs to be sold.

Why is it a problem to keep extra inventory around? Well, one of the most important reasons is that it can be expensive to store inventory. Additionally, the money you used to purchase that inventory is now no longer free for other expenses. Depending on what you sell, the merchandise may lose value over time.

What to do about excess inventory

If you find yourself holding onto an excess of inventory, don’t worry! There are many strategies you can use to help move your inventory faster. Check out these 8 tips to quickly eliminate your extra e-commerce inventory:

Paid search

Utilize paid search to help with your overflow of inventory. This is beneficial because it can help you reach new customers. Customize your ads so that they are showcasing products you have an excess of. Include strong keywords and make sure your campaign budget is large enough to cover a longer time span.

Gifts

If the inventory you have is fairly inexpensive, you can include it as a gift on large orders. If the inventory is expensive, you can advertise a free gift of a lesser item with purchase. These advertised gifts will encourage customers to buy. They’ll feel that they are getting a good deal by getting two items for one price.

Product bundles

Similar to gifts, this tactic will convince buyers by making them feel like they’re getting a great deal. Create bundles that pair the extra inventory item with hot-selling items. These types of specials are usually popular around the holidays because they make good gifts.

Increase shipping speeds

While it may seem trivial, shipping speeds are very important to consumers. If possible, you should make sure your shipping speeds are as fast or faster than your competitors. If you offer similar products but yours is able to reach buyers first, many will opt for your product. When you are having a hard time moving inventory, try looking into ways in which you can speed up shipping so that customers are more enticed to choose your product.

Retargeting

Ads or email campaigns that are targeted toward customers that have already purchased a product from you is another great way to move inventory. This is referred to as retargeting. Retargeting is especially helpful if your product requires regular repurchasing or if you are selling similar products the customer could be interested in. This strategy can help you to make sure you are using your resources on an audience that is already interested in a certain type of product.

Images and product titles

Customers care about the images and titles used on your website. E-commerce does not allow customers to see items in person before buying, so customers are more critical of how the items are presented online. If you have a lot of inventory left for one item but can’t figure out why, try rewriting the product titles and taking new photos that show the product in great detail.

Expand your market

By expanding your business into new markets you will have the opportunity to reach more buyers, especially if you are able to expand internationally. Selling through Amazon is a great way to do this because you don’t have to spend time learning how to function in that market. If you have excess inventory, selling on Amazon could be a great place to start.

Automated pricing

Stay competitive with others selling similar products by using automatic pricing tools. These will help adjust the price of your products to match similar products on the market. This method ensures that prices stay comparable without requiring manual effort into keeping them updated. It can be a great way to help drive sales of that extra inventory.

How to avoid excess inventory in the future

While it may be impossible to completely avoid excess inventory, there are ways you can plan ahead to make it easier on yourself. By forecasting demand, controlling your costs, and using efficient storage strategies you will be able to successfully plan your inventory. But, if you do find yourself struggling with excess inventory, you’re now equipped with 8 strategies to tackle it.

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