![]() Promotions: When in doubt, a good sale or promotion will do the trick in moving products while still earning a return in the process. Be sure to read the fine print before doing so.Ĥ. Return to sender: If possible, return the items to your supplier for a refund. Do your research: Determine why there is no interest in the product and try to find a way to make it more appealing.ģ. You’ll get a tax break and free up some much-needed warehouse space.Ģ. Charitable donations: One of the simplest ways of getting rid of unwanted stock is to partner with a charity. ![]() Without wasting any more time, let's take a look at all the ways that you can get rid of dead stock, and free up space for more exciting products.ġ. The good news is that as terrifying as dead stock sounds, there are ways of working around it. The most obvious question that may be coming to mind is “How do you get rid of dead stock in luxury retail?”. What are some options of dealing with dead inventory? Your warehouse and bottom line will thank you for this. To prevent dead stock from taking over, avoid ordering too much stock, and when in doubt, rather test the waters before bulk buying products. This stock is no longer moving, people are not interested in it and it's simply taking up warehouse space. Excess inventory is exactly as the name implies, you ordered too much of something and now it needs to stay in storage until the current stock starts moving.ĭead stock on the other hand could be excess inventory that was never sold or the by-product of slow-moving products. Slow-moving products are products that are being sold, they’re just taking longer than expected to do so. No, they are not although they do share certain characteristics. Dead stock, slow-moving and excess inventory – are they the same thing? Seasonal purchases: Much like the ugly Christmas sweaters mentioned before, some items are only applicable to certain times of the year, and once they’ve passed, so has the appeal of the item in question. Unfortunately, this delay means that the expiration date could be fast approaching which is a problem.Ĥ. Expired goods: You could receive a bad batch, forget about a delivery or simply overorder. If you cannot return them to the supplier, you’re stuck with defective products that people don’t want.ģ. Damaged goods: Whether it happened in transit or an unfortunate accident in the warehouse, goods can get damaged. Over ordering: This could be because you anticipated a greater demand but lacked the customer interest in the product to drive sales the way that you had imagined.Ģ. To keep things simple, we’ll mention the four main causes of deadstock:ġ. There are so many reasons why brands end up with dead stock. Longer lead times due to difficult to navigate storage spaces that may be spread out across the country – 19% of online shoppers will abandon their cart if delivery takes too long.Additional staffing requirements to manage the excess stock and storage spaces.Increased overhead costs as you increase storage facilities to facilitate the dead stock.Wasting warehouse space, and finding ways to improve warehouse efficiency needs to be considered.Issues that arise as a result of deadstock include: Given this rather big number, it’s easy to see why dead stock is a problem and understand the need to find ways to effectively manage deadstock clearance. This means that it could be potentially more for less business savvy stores. In case our previous examples didn’t paint a big enough picture the fact that 20-30% of most business stock becomes obsolete – and this applies to some of the most well-run businesses out there too. How do you get rid of them without losing money? This is just one of many dead stock examples. And to make matters worse, they’re about to expire. ![]() Unfortunately, people are no longer bulk buying and you’re sitting with hundreds of cans of baked beans. In the great shopathon that was the COVID-19 lockdown where people decided to stock up, you decided to over order non-perishable food items. Your customers will be looking for a store that doesn’t have tons of Christmas sweaters in storage.Īnother example is canned goods.You’re losing out on new opportunities and trends to follow.The ability to order new stock is restricted.Unfortunately, it's now May and you've got 19 boxes of sweaters just taking up space in your storeroom. Let's put it into perspective, shall we? You buy 20 boxes of ugly Christmas sweaters because everyone was looking for one the year before. As the name implies, the stock has no real-life left to give, it's stuck.Īnd this is where every store owner's worst nightmare comes to life. The reason for this is pretty simple, after all, if it doesn't sell it becomes dead stock. Any store owner will tell you, that the pressure is on when it comes to deciding what products to stock as well as the various quantities.
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