The 10 secrets of major retailers for selling off their unsold stock

Having too much stock is one of the main reasons why brands and retailers (online or physical) don't grow as fast as they'd hoped. As well as taking up valuable space in the backroom, on the shelves or in their warehouses, unsold stock ties up capital and can prevent you from reinvesting in your business or buying resources you really need.

That's why it's vital to keep an eye on sales and inventory trends, so you can make the right purchasing and marketing decisions.

To deal with the problems of overstocking caused by uncontrollable factors such as trends and your market's environment, we're going to let you in on the secrets of the major retailers by answering the following question: How do you sell off unsold stock?

1. Renew your merchandising efforts

When an item doesn't sell, the problem isn't necessarily the product itself. In some cases, the problem may lie in the way you market or position the merchandise in your physical or online store.

Try to renew your marketing and merchandising efforts on items that have a low turnover rate and should therefore now be considered unsold.

One thing you can try is to reposition them in a more strategic place in your store, or simply change the way they're arranged. According to the experts, this is a great way to boost sales.

It's important to make your products look new and fresh to your customers, who may not even have seen the items at the previous location. Renew the design of product locations with bright colors, and don't hesitate to replace worn-out price tags for physical signs.

For e-commerce, it's a good idea to rephotograph items for the website, thinking "how can I showcase my products with beautiful photos?", post articles on your blog or social networks about the uses and benefits of the product(s) concerned, and finally feature these articles on your online site.

The only downside to this method is that it can be costly, and increase the cost of your article in view of the effort involved. Not to mention the fact that success is in the hands of your customers, and given market fluctuations, the result may not always live up to expectations.

But it's still important to be optimistic, especially if you have an item that's a seller, even if your current image or marketing efforts don't always make it so, it can be a good strategy.

2. Increase the exposure of your unsold products

Large retail chains and Pure Players frequently use this procedure. If you have slow-moving stock, doubling or tripling the exposure of your merchandise is a smart tactic.

In practical terms, this means arranging your products in a greater number of locations in your physical or online store. You could, for example, display them towards the front of your store (first page) and then have the same products at the back. 

On the Web, setting up an Adwords campaign targeting these articles can also be a good solution.

In order to optimize this method, it's essential to perfectly analyze the flow of customers within your store, and to know which areas (pages) of your store are frequented by shoppers. This information will help you decide where to place your unsold stock. 

3. Reduce the price of your unsold goods

If your merchandising renewal isn't working, it's time to consider lowering prices for unwanted inventory.

To do this, it's advisable to carry out this reduction in stages, starting, for example, with a 30% promotion and then continuing according to the evolution of your sales.

You can also directly set up sales events dedicated to your unsold products, such as a flash sale, to instill a sense of urgency in your customers.

The more "noise" these events make, attracting as many visitors as possible, the stronger the result. Making visitors feel that this is an extraordinary event will encourage them to think "if I don't buy it now, it won't be there later", which makes sales soar. So the sale is more about the event than the discount itself.

What's more, if you do things right, you'll win new customers who will make regular sales in the future.

The frequency of these events varies according to the number of unsold items and the capacity to carry them out, as they require a great deal of resources. Many companies hold this type of event every month or at the end of a collection, in order to be able to invest in future collections with greater peace of mind.

Flash sales work in the same way online as they do in a physical store. The important thing is to stand out from the crowd with your style, and to plan them wisely so that they are well executed and don't lose their appeal for your customers.

Finally, don't forget that while these discounts are a way of attracting customers and increasing your sales, it's not always the right strategy for you. If you're a retailer who caters to high-end markets, or if you're trying to preserve a certain image, you might want to think twice before organizing this type of sale. The same goes for retailers who have tighter margins and can't sell their products at a loss. In such cases, it's best to implement a different inventory liquidation strategy.

4. Group items and create packs

Grouping different items together is another technique retailers use to reduce unsold stock. According to experts, this is the second most frequently used method, after reducing sales prices. According to studies, 90% of retailers claim to have implemented it within their store or online site.

Creating this type of pack by grouping together different or identical products and offering them at a more attractive price than separate purchases pays off, since the average value of your orders will increase, while at the same time reducing your surplus stock.

It's also possible to offer the extra item free of charge to boost your sales if your margins allow it.

The best practice is to group a slow-moving item with one that has a much higher turnover.

The most common case is to have low-margin items that you sell faster than other high-margin items that become unsold over time. So, choose to bundle them at a slightly lower price in order to sell off these undesirables faster while maximizing your profits.

5. Offer unsold products as an incentive to buy other items

This tactic works for inexpensive items. If a product is hard to sell, use it instead as a gift or an incentive to buy another item.

In fact, if you find that a particular item is a "dud", but doesn't have a high cost price, it's useful to offer it as a gift for consumers, so that they'll sign up to your mailing lists or help you win another sale. In this way, you pass on the cost of the product as a marketing expense.

For example, you could distribute your unsold goods free of charge to customers who buy three or more items, in order to amortize as much as possible the loss of the cost price of the item offered.

For physical stores, it's a good idea to promote this type of offer at the entrance to your store with posters, for example. This will attract customers' attention and naturally increase footfall.

6. Return or exchange them with your supplier

Whenever possible, you should consider returning the goods to your supplier in exchange for a credit or new products. To do this, make sure your products are undamaged and in their original packaging. Your supplier is bound to want to keep you as a customer, so use this argument to your advantage.

If you have a good relationship with them, you should definitely explore this option in order to work hand in hand and try to find a solution.

7. Sell unsold goods with specialized start-ups

This method involves using another company to sell its unsold goods on your behalf. The practice of "dropping" unsold goods is booming, driven in particular by digitalization and the many start-ups being created with the aim of becoming digital intermediaries.

New platforms are specializing in these anti-waste models, particularly in the food sector, with companies such as Phenix and Too Good To Go. In ready-to-wear, the big trend is second-hand, with platforms such as Vinted and Place2swap.

Mastodons such as Veepee or ShowroomPrivé are obviously very good solutions, but they are positioned more on the resale of products from major brands and on ready-to-wear.

Recently, 18h08 decided to launch its offer for small and medium-sized businesses that are unable to use the services of the platforms listed above due to lack of brand awareness or product typology.

With 18h08, you don't have to worry about your unsold products, as they give you the ability to simply put your unsold products online and sell them for you. Commissions and fees on sales vary according to the solution and your product type.

These companies can also refer you to liquidation companies or collect your products for donation (Steps 8 to 10).

8. Sell on marketplaces

You could try selling these items on sites such as eBay, Amazon or Etsy. This will take a little time, however, as you'll need to create product pages and photograph each item (if you haven't done so already), but these sites could be great ways to help you sell your excess.

If you choose this option, it's important to bear in mind that each marketplace has its own rules and commissions, so read the notes carefully before signing up.

9. Use specialist liquidation companies

You can also opt to sell your surplus stock to a liquidation company.

These companies will choose the items that suit them and buy goods at very low prices, either per item (between 1% and 10% of the initial price of your product) or per kilo, depending on the type of product. This method allows you to get rid of your stock quickly, but will not allow you to make a profit on the cost of your items. However, it will at least free up space and a little capital for your business.

10. Make a donation and benefit from tax advantages

A final option is to donate your unsold stock to non-profit organizations and associations for tax deductions. 

Find out how these deductions work from the government. Depending on the case, the state can deduct up to double the cost of its products.

But it's not just about taxes: donating your goods can also have a positive effect on your brand image, depending on the publicity you give them.

Summary table of methods :

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