Stacks of stale product collect dust on shelves and in storage. That’s not good for business, and retailers know it. The faster you move inventory, the better the bottom line. But it doesn’t always play out that way, does it?

Without question, it can be difficult to move extra inventory. “Depending on the item, it can be tough, at times,” said Logan Beach, archery technician with Mammoth Outdoors (mammothoutdoorsbg.com) in Bowling Green, Kentucky. “Companies design and put out new products basically every year, and with customers wanting the next best thing, or the new year’s hottest item, it can definitely cause certain items to become slow sellers, or obsolete, in some cases.”

Numerous problems follow inventory that overstays its welcome. Increasing carrying costs. Declining profits. Products becoming obsolete or worth less. Decreased storage space. The list continued.

“In today’s time, and online ordering at an all-time high, I feel it’s important for businesses to maintain a healthy inventory to provide for the customers without overdoing it,” Beach said. “It can be frustrating to see people ordering directly to the door versus coming in local to get it.”

So, what’s a guy or gal to do about excess inventory? Consider the following 15 tips and tactics.

1. Sell Online, Create Ad Campaigns

If archery retailers aren’t selling online, they should be. In today’s market, there are many online ways to move extra inventory that don’t require physical store shelf space. Having an online store presence, and being willing to ship product to customers, is an important step in competing with large online retailers.

Even if you aren’t selling a lot of product online, having that presence can drive sales both online and in-store. Having a viable social media presence can drive traffic to online stores and brick-and-mortar locations, too.

“Be active on social media,” Beach said. “In today’s time, the world is in the palm of everyone’s hand. Social media posts, sales ads, and videos can be very beneficial tools to letting people know what you’ve got in stock and how much you have.”

Furthermore, creating online ad campaigns can drive consistent results. Of course, this requires in-depth understanding of this topic, but once learned, it will become a regular part of your day-to-day operation, even for product that doesn’t become excess inventory.

2. Refresh the Look

Some product fails to leave the store because it doesn’t look good. Or it’s sat there for so long that regular customers glaze right over it. That’s an issue, especially if it gets to the point where customers recognize it’s been there a long time and isn’t moving.

To combat this, literally dust off the product. Move it to new locations. Create some signage that draws fresh attention to it.

3. Increase Visibility and Exposure

In addition to refreshing the look, find ways to increase visibility and exposure. Be knowledgeable of what you have in stock. Understand the nuances involved with increasing likelihood of making the sale.

Strategic floor placement can help move products. For example, create a side-stack or end-cap display in high-traffic areas to increase the number of eyeballs that see it.

You might also consider the quantity of product. A large volume can create that freshly stocked mentality. But the antithesis of that direction holds merit, too.

“Place larger quantities on the sales floor, or remove large quantities from the sales floor,” Beach said. “Occasionally, the illusion of an item being almost gone can create a sale, helping you reach your goal of decreasing your backstock.”

4. Have Seasonal Sales (But Keep Prices in the Black)

Obviously, there are numerous in-store ways to move extra inventory, including cutting prices. Consider running big sales on excess inventory that hasn’t left shelves.

“Seasonal sales on select items can also help,” Beach said. “If the item has a timeframe where it sells better than others, once that has passed, you might try to lower your price or average it out amongst other products.”

5. Slash Rates, Use Discounts

Discounts make most shoppers’ ears perk up. No matter the form of said discounts, it can prove useful to implement these on excess inventory. Creating sales around excess stock also brings customers in to see the latest and greatest offerings, too.

Of course, you can establish generic, across-the-board markdowns on certain excess-inventory items. (Ensure you don’t go below at-cost levels, though.) Furthermore, store managers might also do “sticker” sales, clearance section displays, and more.

6. Offer Bundles

What do they do at auctions? They stuff items in boxes and bundle less-attractive items with things people actually want. You can deploy a similar tactic in retail.

Offer like-item package bundles that create opportunities for customers to get great deals. Consider pairing stagnant inventory with hotter items and mark the former down enough that it makes sense for customers to go with the bundled option.

7. Contact Suppliers

Retailers shouldn’t forget that some suppliers offer help. Reach out to them and see if they offer any assistance. Ask if they can refund or swap old inventory. See if they offer signage or programs to help move product. Whatever the assistance, even if seemingly minimal, can make impacts.

8. Generate a New Marketing Campaign

Retailers who generate a buzz tend to move the most inventory. Devising clever concepts can help get products off shelves, into hands, and out the door. Therefore, consider generating periodical marketing campaigns to increase excitement around your store. Implement themed ideas around timely product categories that customers will enjoy. Run these across digital and social platforms. If budget allows, consider local radio as another viable option to generate excitement.

9. Host In-Store Events

You might even pair marketing campaigns with in-store events. As competition increases, businesses are implementing creative, unorthodox ways to move inventory.

“Customer appreciation days — set aside a weekend day for customers to come and shop with lower prices,” Beach said. “Get local food trucks involved as well as distributors to set up booths to help promote products. Giving away some items can be a great attraction for business.”

10. Use a Third-Party Sales Platform

If your online and in-store platforms fail to get product off your hands, consider using a third-party sales platform. These exist, and while they take a cut of the profits, that’s likely acceptable for excess inventory that isn’t selling. Of course, do your research, follow all rules, and abide by any state or local guidelines.

11. Consult with a Liquidation Company

Some companies specialize in purchasing bulk product from suppliers and retailers that don’t sell. If there’s no better option, consider consulting with a liquidation company. These organizations won’t pay sticker prices, and might not even purchase product at cost. But if all else fails, it can make space for new product.

12. Move Remaining Product at Cost

While the above options maintain opportunities for making small to moderate profits, the remaining options do not. If all else fails, and there’s no way to make even a sliver of profit off the product, it’s time to cut bait and move on.

Therefore, consider selling excess product at cost. This doesn’t help the bottom line, but it might help keep from subtracting from it. It can make space for other products that add to the profit category, rather than the loss.

13. Conduct Social Media Giveaways

Another popular option includes running social media giveaways. While it doesn’t directly add to the bottom line, these can benefit the community and your business’s social media presence. It can also create a buzz that brings customers into the store to make other purchases.

“Everyone loves something for free, and it’s an interactive way to help get your name and business out there to more people across a broader audience,” Beach said. “It also helps you stay involved and attentive to what your customer base prefers.”

14. Distribute Product to Influencers

One of the biggest changes to modern marketing is the use of “influencers.” This is a popular tool for national, large-scale brands. However, it’s viable for local retailers, too.

If you have a viable online store, find influencers who speak to your target audience. Be reasonable with whom you contact, though. Don’t expect a top-tier influencer with hundreds of thousands of followers to shill for a few free products. It won’t happen.

That said, finding influencers with a few thousand, or maybe those in the low tens of thousands, might possibly be open to striking a deal. Oftentimes, these influencers with 1,000-10,000 or 10,000-30,000 are the two groups that are best to target.

Of course, if you don’t have a moderate to strong online purchasing presence, search for influencers near your physical location. They’re more likely to convert in-store visits than influencers living hours or states away.

15. Donate for Tax Write-Offs

Lastly, don’t overlook the power of donating excess inventory. That said, consider doing so wisely with non-profit organizations that provide advertising opportunities. For example, donating to live auctions, silent auctions, or organization giveaways can create discussions around your business.

Furthermore, some might choose to donate extra inventory to good causes. Oftentimes, done correctly, this can aid in marketing efforts, and might even serve as tax deductions.

“We try to help different organizations within the community as much as possible,” Beach said. “Banquets, school festivals, and outreach programs are great ways to help a good cause and clean out the back.”

Order Better Next Time

It’s good to order product in a manner that is consistent with consumer demand and projected sales forecasts. At times, it’s possible to hit required order buying and needed inventory just right. It isn’t always, though.

“Occasionally you will hit the sweet spot on quantity and run out or be close to it by the time new products return,” Beach said. “This helps keep the flow of new items and deals going year after year. “

Of course, there are ways to hit inventory numbers so there isn’t a lot of extra inventory left over. “Plan ahead,” Beach said. “You won’t always be right, but after a few years, you can identify what products will be good sellers and what won’t. Keeping your eyes and ears to social media and what’s buzzing around can be a key contributor in hitting your goal.”

Sidebar: 10 Reasons Excess Inventory Piles Up

There are many reasons why excess inventory piles up. As retailers, it’s important to avoid these 10 trouble spots.

• Partnering with terrible vendors: Some vendors aren’t great. It’s that simple. Tardy deliveries. Poor packaging. Dismal marketing assistance. The list goes on. Sometimes, it’s best to find new vendors.
• Weighing personal preferences: It’s easy to love a product that your customer base hates. It’s easy to hate a product your customer base loves. But it’s important to stock according to what consumers are buying, and not what you personally prefer.
• Forecasting demand incorrectly: In the past, product demand followed more consistent curves. Today, product demand can be much less predictable. Due to viral social content, influencer potential, and more, something that flies off shelves today might be old news tomorrow. That can lead to forecasting demand incorrectly and overestimating sales projections.
• Minimum order issues: Sometimes, retailers must order a minimum number to be taken seriously by suppliers. At the very least, ordering larger quantities places you higher on the priority list. Therefore, falling into that trap can result in overstocking items.
• Significantly increasing orders: Past results are not always reliable projections for future results. Therefore, significantly increasing orders over previous years can lead to overstocking. Think carefully before ramping up orders for specific products, or your overarching inventory.
• Decreasing quality of stocked items: A sudden reduction in product quality can turn off customers. So, decreasing the quality of stocked items can lead to stale numbers and inventory remaining in the store.
• Seasonal inconsistencies: With retail sales, timing is everything. Most products have peak-demand periods. Stocking items just before and during these time frames increases the odds of moving product. Stocking seasonal products outside these times, and in an inconsistent manner, won’t help customers, or the inventory cause.
• Sudden inventory changes: Loyal customers oftentimes settle into products they know and like. Suddenly removing these options, and offering different things, can upset consumers and cause them to shop elsewhere. 
• Pricey storage: As the cost of storage continues to rise, retailers are trimming down on rented space. This means cramming more inventory into less space, which isn’t good for moving inventory. Furthermore, it can lead to lost or misplaced product that’s forgotten.
• Getting tunnel vision: As retailers focus on top products, and typical day-to-day operations, it’s easy to get tunnel vision. Old inventory is forgotten and doesn’t receive the priority needed to move it.

Photos by Honeycutt Creative