Many companies that sell physical products eventually have to deal with inventory challenges. More often than not, they find themselves with more products than they needed, struggling to sell everything. But it doesn’t have to be like that.
There are different ways to improve your inventory management so you won’t end up with capital tied up in products that aren’t moving. For example, you can create effective marketing campaigns to sell more or start accepting advance orders to better control your stock. Another idea is to simplify your product line or set optimal prices to improve sales.
Create a Simpler Pool of Products
Many companies overcomplicate their inventory by having too many varieties of the same product. If you sell a jumper in eight different colors and three sizes, you have 24 varieties and will need to keep a stock for each of them. The best course of action is to eliminate the slow-selling items and make them available for advance orders only.
Create an Effective Marketing Campaign
If you need to get rid of extra stock in a timely manner, invest in an effective marketing campaign. Apart from heavily advertising in different mediums such as radio, TV, or even Facebook Ads, you can run promotions like “buy one get you free” to help sell more quickly.
Accept Advance Orders
Instead of relying on last-minute orders, a good strategy to sell more products and have better control of your inventory is to sell in advance. That way, you’ll have plenty of time to process the sale carefully. To encourage customers to do that, you should give a discount for those who order early and add a small penalty fee for cancellations.
Improve Your Inventory Management Tools
Sometimes, all you need to do to improve inventory turnover is to have the right management tool in place. Gone are the days when employees needed to write product information on paper sheets, which is slow and prone to errors. Nowadays, with barcode technology and inventory management software, you have all the data you need to control the stock effectively.
Set the Right Price for Your Products
It’s important to always study the market and learn as much as you can about your competition. Some of your products might be overpriced, and that’s the reason why you’re struggling to sell them. Check if it might be a good idea to lower the prices in order to boost sales.
Stock the Right Amount of Inventory
If you’re having difficulties deciding when to reorder more stock and the exact amount to keep, spend some time improving your forecasting. Some products might sell faster than others, and other products might only be popular in certain seasons. For instance, there’s no point in buying too many winter coats just before the summer.
All things considered, when you’re having difficulties selling your products, you’re essentially leaving money on the table. Once you take steps to improve sales or create a more efficient system, you’ll hopefully see your inventory rolling.