The modern world of shopping makes it less likely that your customers will be interested in buying old stock that has fallen out of style. What are you going to do with those items? Well, that’s nothing but your dead stock that has no value. Dead stock is nothing more than unsold items. In this article, we will explain what dead stock is and how to get rid of it.
What is Dead Stock?
When defining dead stock, it refers to store inventory that is being unsold or items that are being disliked by customers. To put it more precisely, we can sell boxes and make money, but we can’t make money by storing. Dead stock is nothing but a profit killer for any eCommerce store or business.
There are three reasons why you should avoid dead stock in your eCommerce store:
- The space it occupies is never-ending
- As long as dead stock occupies space, that space cannot be utilized for anything else
- By then, the warehouse will be more expensive
- You will always have the same amount in your pocket
- Space for storage will increase
There you have it, the common reasons for dead stock and how it can cripple cash flow for your business. If you’re a retailer, dead stock is like overgrown trees that need maintenance and you can’t get rid of it until you cut them down. In terms of dead stock, you need to provide them with a space and timely cleaning, and you also can’t get rid of them until you sell them.
Meanwhile, Dead Stock is like the first wife that everyone gets bored of and wants to get rid of. In the era of trends, it is very evident that your dowdy items are being unsold or not chosen by customers. This is why you have so much inventory in your warehouse.
Let’s find out why you have dead stock in your warehouse:
- It could be because there is no or low demand for your items
- It appears that your products are damaged or defective
- Cannibalization of sales
- Inadequate inventory control system
Top Tips to Get Rid of Dead Stock
After you understand why this is happening, let’s take a look at what you can do about the dead stock in your warehouse.
1. You need a good inventory management system
We say better management means better business and we mean it. The way you manage stock, inventory, and sales is the key to your eCommerce store’s success, especially when it comes to eCommerce.
The owners of eCommerce stores used to purchase stock that would be demanded by customers and stocks that were stored for when they were needed. In most cases, store owners find it difficult to keep track of every item they have in their inventory.
In this case, you should make use of an inventory management system that can help you manage stock and provide real-time information about your stock. Inventory management systems are beneficial because they tell you what items have been sold and what items are left. By doing this, you can ensure that no items go unsold.
2. Add your items as Up-sell & Cross sell
Up-selling and cross-selling have always been common ways to sell dead stock. There is no doubt these tricks will help you sell your old items. Up-selling is like encouraging customers to buy a premium version, which will entice them to buy a product.
Also, cross selling is the best way to get rid of your dead stock as it will help you attract buyers by showing similar items with your new items. In this way, you can increase the interest of buyers by showing them that there is a similar product that is less expensive than what you have chosen.
You can hire Magento developers to list dead stock as up-sells and cross-sells to promote the items more effectively. If you attach it to the most popular or most favourite items in your store, it will work better. As a result, cross-selling and up-selling can be beneficial in clearing out dead stock.
3. Send a gift along with the order
We all love receiving gifts, especially “FREE” ones, don’t we? To enhance customer loyalty, sending items from your dead stock with orders that your customers make without including gift prices is the best way to sell your dead stock.
Ideally, the item you send as a gift with your order should have a low shipping cost or no shipping cost at all. You will be making your customer happy as well as clearing out your stocks, and chances are higher they will tell their friends about this as well.
Despite the fact that the item you send is inexpensive, hasn’t sold well, or isn’t of the highest quality, customers love and appreciate it nonetheless. In the end, everyone loves double cheese sandwiches when they are free.
Additionally, sending a free gift will enhance customer loyalty, which is difficult to achieve in this competitive market. According to one report, 90% of customers say free gifts with purchases increase brand loyalty. Because of this, we encourage you to add free gifts to your order and enjoy many benefits.
4. Put a deadline on it
Oftentimes, we purchase items that are no longer in stock or have a date-set for their availability, so this is an effective way to dispose of dead stock. Establish a deadline for every product that is being unsold so that you can show customers that they have less time to choose and buy products.
Add tags to every product with availability information, discounts for a few hours, deals, and percentage savings. If you do this, you will be able to attract buyers who are fond of your items and they will purchase from you first.
Deal-seekers are likely to buy your dead stock, so you can sell each item slowly and steadily. In addition, you’ll see people who feel an urgency to buy items, for example, if they need them to be delivered within a day or two. Therefore, keeping an urgency or deadline for your unsold stocks can be an effective selling tool.
5. Buy one get two free
Surely you’re thinking that there’s buy one get one free, right? Nevertheless, when it comes to clearing out dead stock, you need to give buyers savvy offers to pique their interest. Providing two items free does not mean you should give the buyers expensive items, it simply means you must see what they have purchased. Are the items they have purchased expensive? Is it one item or a bundle of items?
If they have added expensive items to their cart, you can offer one little expensive item and one cheap item free. If the item they have purchased is cheap, then you can be a dime a dozen. In this way, it is easy to sell new products and clear out your old stock without any loss.
Dead stock stored in your warehouse may mean that your items aren’t liked by customers or are out of fashion. Fortunately, with these tips, you will no longer have to worry about the dowdy items you want to sell and resume your sales trajectory.
Dead stock got you down? M-connect Media can help you. Our Certified Magento developer and Magento support team can help you list dead stock on your eCommerce site as an upsell for sale and let you have freedom from this hassle. Contact us now for more.