How to Clearance Inventory Quickly in an Online Store

Clearancing products for e-commerce business is essential, as even though they do not have to worry about inefficiencies with providing shelving space for unprofitable products, they must still pay for inventory warehousing and space on the server. Therefore, businesses holding onto inventory that is decreasing in popularity, are also experiencing a decreasing profit margin.

One method of analyzing which products to clearance is by reviewing a trend report from the shopping cart software’s reports section, in order to determine the number of sales per month per product. If the cost of holding the inventory for a particular product exceeds the potential profit, then the business should develop a plan to clearance that item. cek harga ongkir

E-Commerce Strategies for Reducing Inventory

Reduce the Price

 

This is the most common method for selling products with a downward trend of sales or which will soon be obsolete. To decrease the inventory steadily, it takes on average a discount of about 15 to 25 percent of the regular retail price. If the business wants to see a significant reduction of inventory as soon as possible, then it should consider reducing the price by as much as 40 to 60 percent, depending on the cost of the product and the profit it still wants to obtain.

Bundle Offers

Reduce the inventory by bundling it together with a related product that show strong sales. For instance, imagine the scenario where Book A is book about the history of geology and is retailing for $15 but needs to be clearance, plus the store also offers the hot new release Book Z for $25, which is about new geological findings. The business can offer the two books together as a bundle $35 to stimulate additional sales for Book Z and reduce its inventory of Book A. One major online business that is well-known for bundling products is Amazon.com.

Clearance Events

If the business holds trendy items or items that become obsolete or unfashionably each year, it should consider holding an annual or semi-annual sale. For instance, Victoria’s Secret holds widely popular semi-annual sales each year both in-store and on its website to clearance the products that are either seasonal, about to either be replaced, or did not prove to be as profitable. These clearance events can be highly publicized and announced in advance to create excitement and anticipation, as well as allowing time for the announcement to go viral through social media sites.

New Markets

The products may have exhausted its sale potential within the business’s current target market, however, through research and possibly expanding internationally, it can possibly find a market where the product is still in demand. This strategy may be too costly for businesses in which does not have a high quantity of an item to clearance, however, it is usually worth investigating.

Clearancing Inventory in an Online Store

For most businesses, having a large amount of inventory that needs to be clearanced can be an indication that it needs to adjust its purchasing and forecasting methods. Businesses that end up with excess inventory that is either too costly to hold onto, or that is in danger of becoming obsolete, should consider either reducing its price, bundling it with popular products, hold a clearance event, or find new markets where it is still in demand.

 

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