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 

crowded feeling.

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

nonprofit organization.

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

sales channel.

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 

on Amazon.

You can even open a second retail or

wholesale outlet in a location

that might be more suitable

for your unsold merchandise.