One of the most important (and challenging) duties of small business ownership is effectively managing and selling inventory. Managing inventory is a delicate balancing act, as you want enough inventory to fulfil all your orders, but not so much that you can’t sell it all, and the costs of carrying excess inventory can be huge, potentially costing businesses millions each year.
Excess inventory—or excess stock—refers to inventory which is at the end of its product life cycle. It’s been sitting on the shelf or in the warehouse long enough that you no longer expect to sell it. It’s often referred to as deadstock, and business owners will strike it from the company’s books.
Generally, the issue of excess inventory occurs when the amount of product you have exceeds demand. In that case, you’re left with a whole lot of something that you already paid for, but nobody wants to buy. And you also have to pay to keep it somewhere, which prevents you from replacing the excess inventory with newer, more in-demand stock.
What are bulk offerings and how do you use them to move excess stock?
Bulk purchases benefit you and your customers. They boost your sales without the need to increase traffic, and your customers get a higher purchase value, and bulk purchases offer advantages to both traders and customers. You need to provide an offering that your bulk customer just can’t refuse!
Think about making your eCommerce store a single stop for retail as well as wholesale buyers, creating quantity-based discounts for both. You can also run bulk pricing offers for retail buyers (buy 3 get 1 free or buy 2 for $49). Retail buyers prefer buying in bigger quantity when given extra deals.
A BOGO (buy one, get one) sale is great, but you should consider going further or getting more creative. For instance, you could offer progressive discounts, where buyers get 30% off if they buy three units, 40% if they buy four, or 50% if they buy five or more. Bulk discounts may encourage customers to buy more than they planned to, trimming down your excess inventory.
Furthermore, here’s another way to help you sell inventory. When you buy products wholesale, you receive a volume discount, so why not offer the same to your customers? If you have a significant excess inventory problem, incentivise customers to buy multiple units for a great price. You can also try applying personalised pricing to every customer registered on your eCommerce store. You can also track customers’ activities on the store and learn to understand their shopping patterns and preferences. This will help you customise pricing for bulk purchases for every customer.
Finally, always keep in mind that Bartercard provides business opportunities to members by converting unutilised trading capacity and excess inventory into business opportunities with new customers. Our world-leading, innovative trade exchange system allows over 24,000 member businesses in seven countries worldwide to benefit from the cashless economy of bartering.
Move more stock faster with Bartercard
Get rid of excess or slow-moving stock without the heavy discounting! Bartercard is a B2B networking platform that exposes your brand not just to local markets but also internationally. With thousands of members from all over New Zealand, you can gain access to our wide-ranging online platform, with offices in 13 locations. Joining our network allows you to reach new markets and increase your chances for profit as you sell excess inventory at competitive prices. Contact Bartercard today to learn more about how we can help you clear your inventory shelves!