One of the most notable ramifications of the growth of e-commerce on the retail sector has been a spike in overstock levels. A record $816 billion worth of goods was returned by US customers; the majority of this inventory became unsold inventory for merchants. The current issues and ongoing supply chain snags are making the overstock dilemma worse. Right now, retailers are faced with a perfect storm: an excess of product and a dearth of customers to purchase it. For merchants, this is a dangerous scenario since having too much inventory can result in several issues, such as:
Retailers must modernize their inventory reduction strategy to thrive in this new retail environment. This entails approaching liquidation more aggressively and figuring out how to make money off of unsold inventory. This whitepaper will discuss the “cost of doing nothing” when it comes to unsold inventory, how to maximize liquidation procedures to boost your profit margin, and what your best options are for getting rid of and making money off of unsold stock.
The more time you spend ignoring your overstock issue, the worse it will get. Unused inventory costs money, takes up room, and can harm the reputation of your company. In fact, unsold inventory costs businesses an average of 2.5% of their yearly sales, according to a National Retail Federation survey. Retailers lose billions of dollars in income as a result of this every year. Higher carrying costs might result from unsold inventory in addition to lost income. When retailers borrow money to fund their goods, they usually have to pay interest on that money. Retailers will have to pay higher interest rates the longer unsold product remains on the shelf. Unsold inventory might harm the reputation of your company as well. When buyers notice that your shelves are stocked with
