It is only expected that in the
process of running your
wholesale or retail business that you will
accumulate unsold merchandise.
There are various reasons why you
will accumulate merchandise,
such as buying too much of it
based on an expectation of
an increase in sales, to changes in
consumer demand for your current
merchandise, to external factors such
as economic conditions.
So while you should not blame
yourself for being in a situation
where you now have boxes and racks
of unsold products, you still
want to find a way to efficiently
deal with the situation when it arises.
The actual path that you will
take will be based on your goal.
You might want to recoup some of the
money that you spent on buying the
merchandise, or you might
simply want to make space
for new merchandise.
Before we go on, I want to
make clear a few reasons why you will want
to clear out any excess products.
The longer an item stays in your store,
the less new it will look. Customers
will want to try it on, it will fall
to the floor, get dusty, or simply
lose its luster because of the impact
the climate will have on it.
Also, your customers want to
see new products when they
visit your store. If you always
have the same products they
won't come back.
So even if you are confident
that you will eventually
sell an item, it can still make sense
to clear it out so that customers
are not under the mistaken impression
that your merchandise never changes.
When it comes to clearing out the
merchandise you need to be careful.
You don't want to give your customers
the impression that your business is
struggling, otherwise they
might not come back to shop
by you, or they might assume
that your merchandise is not
of the highest quality.
Which ever approach you take
to move out your inventory
make sure that you keep in
mind how it will be perceived
by your loyal shoppers.
I personally like to be
very upfront with my
customers about the reasons
why I conduct sales, or
give merchandise away.
Customers feel more comfortable
about my business, and they
are assured by knowing the
reasons why I decide
to run a sale or give away products.
Yes, as a wholesaler I also
accumulate merchandise, which
I then work towards moving out
as quickly as possible.
From time to time I will run
super sales just because my
warehouse starts getting a
I want my customers to feel
comfortable in my warehouse,
and I understand that they need
space so that they can look
at all the items that I have for sale.
I would like to share with you
6 tips to clear out unsold merchandise.
Donate the merchandise to a
You will be doing good, while possibly
enjoying a tax write off.
Consult with your accountant to see
if a donation can help you and your business.
Even if you do not receive a tax write off
it can still make sense to donate unsold products.
First of all, you will be helping the organization
accomplish its goals, and second of all,
by giving away the merchandise you
won't be running a huge sale at your
warehouse that might drive down the
perceived value of your merchandise.
If you run a sale your customers
might conclude that either there is
an issue with the merchandise, or they
just might always expect to pay those
lower sales prices.
Run a one time clearance sale.
You really need to be careful with this
While sales are a great way to
sell your wholesale goods, they
are also problematic since they
train the consumer to only
shop when there is a sale.
If you use a sale make it very
clear what the reason is for the sale,
and how it's only for a specific selection
of your items, and for a specific period of
Barter your merchandise.
Bartering means exchanging your
inventory for the inventory, or
services, of another business.
For example, let's say you
have a clothing store and
you took a chance
and purchased 100 towels that are
just not moving.
You can find a beach store that
needs the towels and trade your
towels for some of the products
that the beach store is having trouble
You will want to make sure that the
products that you are receiving in
exchange will appeal to your
You can also exchange your merchandise
for the services of a professional
that you might otherwise have to
pay out of pocket.
Let's say you meet an interior decorator
who can rearrange your shop
in a very professional manner.
You can offer her merchandise in
exchange for part, or all, of her fee.
You can give out your merchandise
on a consignment basis to another
store or wholesaler.
Let's say you have a shoe store
and you are left with 20 pairs of women's
You have tried running a sale for them
but they are still sitting in your store.
You can approach another shoe
store and offer to give them
the boots on consignment.
When the store sells the boots you
can split the proceeds according
to a formula which you will agree to
ahead of time.
There is a risk in giving out your
merchandise on a consignment
basis since you might never
get paid for it, but if you
have exhausted every other option
and you don't want to donate your
products then it might make
sense to use this approach.
Give out your merchandise on credit.
If you have merchandise that people
are reluctant to purchase
you might consider giving it to
people on credit.
While there is a risk of not being
paid for it, if you trust your
customers, and you have tried
moving out the merchandise with no
success, you might consider taking
a chance on this option.
If I would use this approach I would
tell the customers that if they
prepay for my products, or
pay early, I will give them an additional
Give your unsold merchandise to your
customers as a big thank you
for doing their shopping by you.
This is my favorite method
for moving out slow selling
I feel good by helping out my
customers, and my customers feel
appreciated as well.
After all, the success of a
business depends on the satisfaction
of its customers.
If you have visited my warehouse
you know that I love giving out
bonuses to my customers.
It helps add value to their purchases,
and builds a good supplier to buyer
You can try selling it through another
Just because your merchandise is not
moving through your current sales channel
does not mean that it won't move
well through another one.
For example, if you sell on eBay
you can try renting a flea market
booth, or if you have a boutique
you might consider selling
You can even open a second retail or
wholesale outlet in a location
that might be more suitable
for your unsold merchandise.