Stock based business means having a lot of different advantage. It decreases the price per unit. It helps fast delivery. These advantages may be in a large range, but it may become an advantage just thanks to a successful stock management.
If you are not able to manage your stock, there is the possibility of facing with problems as not to stock up and this means more warehouse and so stock cost. Especially growing means stock and warehouse management for the small and medium sized ecommerce enterprises.
We estimate these tips would help you to finish your stocks.
Determine the products which you should finish
You may not need to destock all of your products. Determine the products which have the features below checking the inventory.
– The products without any sale in the last month
– The products which can be sold only in a period of time (for example, New Year)
– The products that are not sold or the sales of them have decreased because a new model has come onto the market
It means financial damage for you to have them into your warehouse. If you can sell them off, you can replace them with new products which can be sold fast and thanks to this fast circulation you can manage your warehouse in an effective and profitable way.
The easiest way to sell these products is making a discount. Decrease the price but don’t drop below the cost at the first sale. Observe these products for a time and analyze if this method helps you to destock or not. If it is not useful you can try to drop below the cost and so you can get cash and clear off the stock.
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It would have a psychological effect to put up for sale as “buy 2 get the 3rd free”. Basically it’s a discount but when you packet and send the products in this way, it may be much more charming than 33% discount for some of the customers.
Combine the products
It may be useful to consider selling the products as a packet relating to each other under the total price. The key point is to combine the products which you want to sell fast with the ones whose stock finishes so fast. For example, if X detergent, costing $10, is sold so fast, you can add another Y softener, which costs $5 and you want to destock, and you can put up for sale at a price of $13. Some of the customers would prefer this product.
Last resort: Give as a gift
You can think to give away these products without any price. With this method you will not earn but it may be possible to use these products as a part of the marketing and loyalty program. For example, you can give a product, costs $10 as a gift with every $100 shop. Or you can give free a product, costs $15 to the new customers. So that you can empty your warehouse and you can maintain an effective marketing and loyalty program.