• For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
  • New Suppliers
Facebook Twitter Instagram
Saturday, March 25
  • Subscribe
  • Submit Content
  • About Us
    • Contact Us
  • Advertise
    • Display Advertising
    • Email Marketing Campaigns
    • Newsletter Advertising
    • Sponsored Content
    • Lead Generation Services
  • Top Product Sources
Facebook Twitter Instagram
WholesaleCentral.com Blog
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
  • New Suppliers
WholesaleCentral.com Blog
Home»For Buyers»Marketing & Management»How to Deal with Excess Inventory
Marketing & Management

How to Deal with Excess Inventory

PublisherBy PublisherJune 23, 20224 Mins Read
Facebook Twitter Email
Share
Facebook Twitter Email
tumbling boxes

by Charlie Casey

Prices for virtually everything have risen sharply over the first part of 2022. Some of the items we know and love are back on the shelves in excess, while others still remain hard to find. In fact, some of the biggest retail stories of the year have centered around the surplus of inventory. 

In May, it was widely reported that retailers were not able to accurately predict what shoppers would be interested in buying in mid-2022, particularly in the fashion sector. Even Target has noted that its inventory is too high and will be cutting prices to move merchandise. Surplus inventory can be a costly situation for ecommerce merchants. 

Here are a few strategies that retailers can employ if they find they are suffering from over-stocked shelves:

Run Bonus Point Promotions on Products That are in Low Demand

One tactic to use to move the extra inventory is to direct customers towards particular purchases by running double or bonus point promotions on items that are not being purchased. This strategy will help push slow moving items off the shelf without impacting the bottom line.  Retailers will see the added benefit of simultaneously speeding up a consumer’s next purchase by giving them extra points to use on future purchases of their choice.

Turn Excess Merchandise into Free Gift Rewards for Loyalty Members 

Another way to clear excess stock is to offer surplus products as free gift rewards for loyalty program members in higher tiers. This will surprise and delight them, and may also give them a chance to try different items they may not have considered before, increasing the chances that they will return and make repeat purchases. 

Create a Members-Only Area for Special Offers 

Create a members-only area on your site where you offer excess inventory to your loyalty program members at a discounted rate. Ensure that your most valuable shoppers understand the exclusivity of the offering so that they visit the page often, and tell others about it, too.   

Move Merchandise with Loyalty Programs

As inflation continues to climb, new shopping behaviors are beginning to take shape.  Consumers are not halting their shopping, but instead shifting their habits, looking for quality and value. At the same time, excess inventory will continue to be an issue in these uncertain times as retail brands adjust to changing consumer behavior and macro-economic challenges. The more retailers begin to better understand what their current and potential customers want, the more the competition will intensify as shoppers compare different brands and their offerings. Taking a look at excess inventory and utilizing it in creative ways to incentivize shopping is an important strategy to help stand out against the competition.  

Creatively using a loyalty program to entice consumers to circle back to a brand to access excess inventory in addition to what they want to buy is a win-win. Create a points structure that allows customers to earn and redeem points within a reasonable timeframe so that they are seeing immediate gains for their spend. Or find ways to incentivize purchases that are linked to the excess inventory. 

By utilizing these strategies, retailers can avoid both product waste and the erosion of product margins. It is time for ecommerce shops to take stock with a renewed emphasis on loyalty programs in order to retain customers and solve supply headaches, simultaneously.

Charlie Casey, CEO and Co-Founder of LoyaltyLion, a data-driven loyalty and engagement platform that powers ecommerce growth. Proven to increase retention and spend, LoyaltyLion is trusted by thousands of fast-growth ecommerce merchants worldwide. Prior to founding LoyaltyLion, Charlie joined the Foreign and Commonwealth Office as an Economics Advisor before becoming a consultant at Deloitte.

customer loyalty how to inventory marketing
Share. Facebook Twitter Email
Previous ArticleNRS Pay Saves the Day with Free Credit Card Processing
Next Article Tips to Leverage Amazon Prime Day

Related Posts

Amazon Return Pallets For Sale: How to Profit

March 20, 2023

Overstock Liquidations

January 25, 2023

5 Essential Tax Season Preparation Tips

January 24, 2023
Sign Up for Buyer Updates
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Latest Posts

Amazon Return Pallets For Sale: How to Profit

March 20, 2023

2023 Wholesale Apparel Trends

March 14, 2023

Top Wholesale Easter Products

February 27, 2023

The Future of Sustainable Manufacturing is a Hybrid Approach

February 23, 2023

Make Money with Foreign-Trade Zones

February 22, 2023

Overstock Liquidations

January 25, 2023
how-to
Wholesale 101 for Buyers

Amazon Return Pallets For Sale: How to Profit

March 20, 202311 Mins Read

A big trend among some online sellers is buying Amazon return pallets and overstock and…

Product News

Overstock Liquidations

January 25, 20236 Mins Read

Overstock inventory refers to the excess goods or merchandise that a retailer has on hand…

Retail News

5 Essential Tax Season Preparation Tips

January 24, 202310 Mins Read

Are you ready for tax season? April 18 is approaching quickly, and many day-to-day decisions…

Wholesale 101 for Buyers

How to Create a Google Business Profile

January 18, 20236 Mins Read

Looking for new ways to get your brand noticed? Creating a Google Business Profile can…

  • About Us
  • Subscribe
  • Contact Us
  • Advertise
  • Find Wholesale Sources
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Follow Us:

Copyright © 2023. Sumner Communications, Inc..

Type above and press Enter to search. Press Esc to cancel.