The end-of-year retail rush puts your focus on getting inventory out the door and handling the inevitable influx of returns once peak season ends. Because of this, retail brands rarely catch a break in the New Year.
If not handled effectively, unsold peak inventory and returns occupy valuable warehouse space and drive up storage costs. To avoid this situation, brands must have strategies to keep inventory moving after the holiday and take advantage of potential sales opportunities.
But, turning surplus into success is easier said than done. We’ve got you covered with four ways to drive inventory turnover once peak season is behind you.
1. Use Data to Drive New Sales and Marketing Initiatives
The first step of dealing with stagnant inventory is identifying which products aren’t moving quickly. Use data to understand which products didn’t move as predicted during peak season. Then, develop specific deals and promotions to add value, build engagement, and boost sales.
Your third-party logistics (3PL) partner should have historical data and reporting to pinpoint your slow-moving SKUs, allowing you to take action. Ensure your 3PL and internal teams know the campaigns you intend to launch so everyone can plan accordingly for a sales surge. This practice helps prevent bottlenecks and delays.
EXAMPLE: Develop a marketing campaign that promotes a New Year Clearance Sale, offering significant discounts and targeting consumers who’ve previously viewed the product or added it to their carts but never completed the checkout process.
2. Create Product Kits and Bundles
Have a few items that complement other more popular ones? Creating product kits and bundles at a discounted rate can help you move inventory after peak season. Simply match a top-selling or limited-edition item with a slower-moving inventory item, roll out a buy-one-get-one offer, or try combining different complementary products into a single purchase.
EXAMPLE: Say laptops moved well during the holiday rush, but you have an overabundance of webcams, headphones, and wireless keyboards sitting in inventory post-peak. Create a “Work from Home” bundle that combines these accessories with some of your best-selling laptops and tablets, then promote a discounted rate for buying all the products together.
3. Add Free Samples and Gifts to Orders
Slower moving products don’t have to go by the wayside. Consider offering consumers a gift with their purchase by including a smaller, less-expensive item or sample with their order. The free item helps enhance the buying experience (surprise and delight!) and allows consumers to try products they may not have considered otherwise.
EXAMPLE: A beauty brand includes free eyeliner, nail polish, or bronzer with every purchase over a certain dollar amount, helping to reduce overstocked items while also encouraging higher-value carts.
4. Don’t Ignore the Signs that It’s Time to Move On
When you’ve tried the options above and still can’t effectively force the sale of slow-moving products, it may be time to explore other alternatives. Ultimately, this can be more cost-effective than putting too much time and effort into selling stagnant inventory.
EXAMPLE: A home goods brand liquidates its surplus peak season inventory to a reseller to recoup costs. The liquidation company then resells those goods to consumers, which may still foster brand engagement and loyalty down the line.
How do you know when it’s time to find an alternative?
Watch for these signs:
- Products have been sitting in inventory for several months.
- There’s been a noticeable drop in demand despite targeted promotions.
- The cost of storing the inventory outweighs its revenue potential.
- A new generation of the product is about to launch.
- Customer feedback on the product has been negative.
If you’re struggling to move stubborn inventory, your fulfillment partner can help you decide what to do with unsold stock, sellable returned items, and other overstocked goods.
What’s Your Post-Peak Inventory Strategy?
As the first month of the year comes to a close, it’s a great time to take a look at your inventory to understand where you can optimize your selling approach to maximize revenue and minimize inventory costs. Try focusing on the strategies above to keep inventory moving after peak season ends. Your customers, and your wallet, will thank you!
If you need more tips on cutting expenses, boosting efficiency, and keeping inventory moving, reach out to one of our fulfillment experts today.
Mary Berko
Mary Berko is a creative content marketing manager focused on e-commerce and logistics. She was previously the senior marketing manager at Whiplash, Ryder, and CLI Studios. Her content has covered e-commerce marketing, fulfillment, logistics, arts education, and dance.