Given labor shortages, supply chain issues, and expectations of same-day...
Sometimes, a seasonal rush doesn’t reach quite as far as anticipated, sales trends change more quickly than ordering decisions can keep up with, or something completely unexpected changes the face of an entire industry. Whatever leads to you having more inventory in your warehouse than you can sell through your usual channels, the problem of what to do with all your excess goods can be challenging to solve.
Any decision you make about what to do when your warehouse has overstock inventory should take into account your business’s future goals and profitability. A third-party logistics provider like Brown West Logistics could perform a birds-eye-view analysis of your operations to help ensure that all your inventory-related decisions keep your business’s best interests in mind.
Everybody likes a bargain, and that applies just as much to businesses conducting B2B purchases as it does to everyday consumers. Accordingly, if your warehouse has overstock that you need to get rid of quickly, one of the most straightforward and effective ways to do so is offering customers a deal on those products.
You can accomplish this in a variety of ways, from bundling overstock goods with more popular items at a single price cheaper than buying those items separately, to giving away some overstock items as “free gifts” with purchases of a certain dollar amount, to offering substantial discounts for anyone willing to purchase overstock items in bulk.
It can also be worthwhile to explore alternative ways of selling overstock that involve neither massive price cuts nor your traditional sales channels. For example, if you usually depend on local business, it may be worth putting overstock up for sale through online platforms like eBay or Amazon, opening yourself up to new potential customers while also solving a short-term practical problem.
Alternatively, you might be able to sell your excess inventory to a business that specializes in inventory liquidation. While you likely wouldn’t get the same price for those goods that you would otherwise get from a direct customer transaction, selling surplus, discounted stock to a company that will then resell the products can be a win-win scenario for both parties.
Finally, you should not discount the benefits that donating extra inventory to charitable causes can have for your brand. While you may not make any money in the short-term, giving overstock to charity can have multiple long-term benefits for your business, from improving your brand image to increasing engagement with your local community – not to mention, the tax write-off. With the right marketing, giving away some inventory for free can reap substantial financial rewards for your business in the future.
Of course, the best way to solve a problem is to plan it for advance and prevent it from arising in the first place. If you are consistently struggling with overstocking inventory, working with a capable third-party logistics provider like Brown West logistics could be the best way to address that issue in a proactive and definitive way.
Brown West Logistics can provide the attention to detail and personalized solutions your business needs to successfully and profitably withstand various supply chain issues, while you focus on growing your business and outshining your competitors. To learn more about what a 3PL provider could do for you, call Brown West Logistics today.
