How do you get rid of old inventory?

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Tourist
19 0 1
In the fashion retail industry and some styles aren't selling and I would like to take them off the site. But what can you do besides completely writing it off as a loss? check out my site while you're at it :) www.gmgstyle.com
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Excursionist
44 0 13
Why don't you run a sale? If you're even considering writing it off, you might as well take a deep discount on it and promote the sale to drive traffic to your site, and acquire new customers. Or you could look to a 3rd party site and use a flash sale to burn thru your distressed stock. Not sure about the fashion industry, but they typically discount by 30-50% and expect at least 30% margin. A site like Fab.com would be your best choice, as they have over 7M members.. though there are tons of smaller players in this space. If you choose one of the more respected sites that appeals to an upscale demographic, it will also help get your brand out there. I'm currently assessing my options as well, planning my first flash sale as part of my go-to-market plan. www.getSTACT.com
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New Member
2 0 3
I am in the process of launching my Shopify site www.flipgoods.net... I primarily buy new overstock, shelf pulls, and returned merchandise including clothing, electronics, toys, home and garden, tools, basically everything across the board from national retailers by the truck load to resell in various ways including wholesale and retail (both offline and now online) I have owned 3 clothing store fronts and I realized early on that all retail store's must liquidate for a variety of reasons including yours. I would gather all my unsold unwanted clothing and sell in lots of 25 50 and 100 to boutiques both in the US and over seas. Sell your left over merchandise for 50% of your original wholesale price to buy more inventory. Only do this if you have sold 70% of that stock at normal prices, normally 3x wholesale on my end. Example, 100 units bought at $15 dollars each wholesale= $1,500, 70 units sold for $45 = $3,150 minus $1,500 plus 30 units sold at 50% of your whole sale price of $15 which is $7.50 = 225 = a total profit, not including others expenses of $1,875. This is not set in stone as I have no idea if you have even sold any of it? so play with this strategy and if you sold next to nothing of it, just sell slightly below your original wholesale price in bulk like "open box item" to someone out there like me or others? If I know I can get rid of it and get a few bucks out of it, consider me an option.. After all, That's what I do! Flip Goods! (www.flipgoods.net.... bona fide liquidation company =)...Cheers!
3 Likes
Tourist
19 0 1
Thank you Nancy and Jamie! I have tried sales, deep discounts too but no one wants it. so sad lol I will try your recommendations and I will look at your site. :) Thanks so much!
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New Member
15 0 0
Ada, I don't know how low on price you are going, and depends on how big your dead stock pile is, but I would suggest emotionally detaching from what you paid for it, and try to let it go even below cost. That can be traumatic to see it go out at a loss, but the truth is sitting in your stockroom it is only going to get more worthless as time goes on. Then use the capital you do get from it for something better. I have had that problem in the past and realized my capital was being held hostage to my emotions. Sometimes you just have to cut your losses and move on. Good luck.
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New Member
12 0 0

Hi Nancy,

Love your website idea. Do you want to connect as I have some stock you may be interested in. You can find my contact details at www.tillyboutique.com.

 

take care

Laura

Tilly Boutique I www.tillyboutique.com
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Tourist
25 0 3

Hi Ada!

I just went through a bit of your site and it looks great! The above mentioned ideas are great, and I hope they work for you. 

But if you're still looking for ideas, have you thought about donating some of your left over products? Not only would you feel good doing it, you could use it as an opportunity to raise awareness for your brand. One example is Browns Cleaners in Ottawa. They run a non-profit organization that takes new and slightly used dresses in so that they can be donated to High school girls that can't necessarily afford a prom dress during prom season (http://goo.gl/n2FN8).

Hope it helps

Isaac

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Shopify Partner
78 0 5

Hi Ada,

It's great that you're recognizing that it's time to cut your losses and let some of your inventory go. It's a hard decision to make, but it's cash sitting on your shelves (and virtually on your site), even if you can't generate revenue from it, it can represent opportunity costs.

When thinking about new products to sell, consider diving deeply into your data to better understand which variants and options sold so you can sell all of your inventory nex time!

- Bridge

PS I like Isaac's recommendation. It's a great way to help others, and generate publicity around your store.

Shopify Inventory Management www.StitchLabs.com
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New Member
7 0 0

Hey Ada,

Have you considered bundling items, or making recommendations for related items? There are apps that can help you with this sort of targeted marketing within your store. 

The ol' Up-Sell, and point-of-sale promotions are great ways of moving stock, and have certainly been proven in the brick-and-mortar world.

Customers may overlook your Sale items while visiting your store, however, targeted and suggested add-ons are a the perfect way to catch a customer's attention when their wallet is already open.

If you are resigned to moving this stock no matter what it takes, it can't hurt to implement a promotion with recommended, and bundled items at irresistible offers. Amazon is a prime example of using this tactic to great affect on virtually every item in their store.  

Directed Edge Product Recommender is on app that offers this sort of implementation for your Shopify store. 

Check it out. Might be worth a try. 

Good luck!

 

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