slow moving inventory

Quit Dusting Your Dead Stock! How Delivery Options Can Boost Slow-Moving Inventory Sales

slow moving inventory

slow moving inventory

Even in a well-run business, there could be 20 to 30% of inventory that is dead stock.

Carrying dead stock and slow-moving inventory can increase your costs and harm the rest of the store.

There are ways you can move these problem items and get the cash your company needs.

Continue reading this article to learn how to keep inventory moving and decrease the time it spends on your shelves.

Say Goodbye to Slow-Moving Inventory

The same shelf of products is staring back at you. It has been for months now and it is taking up valuable retail space. There could be a number of reasons that you have dead inventory on your shelves, such as:

  • Lack of customer interest
  • Selling products that are too similar
  • Failure to train staff to sell a product
  • Defective products

No matter what the reason is for having excess inventory, there are solutions that can help you get those annoying boxes off the shelves.

What Is Dead Stock?

Dead stock is inventory that doesn’t sell. If your company doesn’t use inventory management software, you may have product hiding out in your warehouse for years.

Whether you manufactured the products yourself or brought them through another company, if you aren’t moving inventory, you are amassing costs. The cost of storing the products is only one of the costs. Having old stock in your store can make your store look out of date and behind the times. Instead of looking like a retail professional, your store might look like a once popular liquidation special.

Avoiding Dead Stock

The first step to solving your problem is knowing that you have a problem.

Having software that will alert you when you have an aging inventory will allow you to get to work on a solution.

Instead of the wait and hope “strategy”, you can put systems into place that will help you shed the dead weight.

You might find some of your products aren’t worth saving, and they have to meet the dumpster, but that isn’t always the case. There are many smarts ways to get rid of these products and recoup some of your costs.

Some ideas for cost recouping are:

  • Selling to discount stores
  • Donation to charity (Hello tax write-off)
  • Using it as a gift giveaway with selective purchases
  • Offering the product in a bundle

Inventory should sell in 90-120 days in most situations. After the 90-120 day period, it is time to get concerned.

Since cash flow is the life-blood of any business, you need to get that inventory moving even if it means taking a loss.

Before implementing any of these strategies, make sure you are not continuing to order products that are not selling. If you are getting rid of the product at a discount only to have more come in behind it, you will never be able to solve your problem.

Quick and Free Shipping Are Your Friend

When selling your products online, it is important to have the best shipping services possible. Shipment is one of the determining factors for whether a customer buys your product or a product from your competition. The days when your company could charge hefty fees for shipping are far in the past.

When inventory isn’t moving, you can offer free, fast shipping on those products to get them to move. If the free and fast shipping alone isn’t enough to make them move then offer a deep discount to sweeten the deal. The longer you leave the product on the warehouse shelves, the more money you will put out in expenses.

While you will not make a profit off of these sales, your company will come out better in the long run since you didn’t have to count these products as a total loss.

You can use the situation as a way to win new repeat customers by giving them an amazing first experience. When first-time customers buy one of your deals, they will experience your fast shipping and customer experience.

If you haven’t thought much about your customer experience when they receive your package, this is a point you need to address. Your customer’s first connection with your product is often when they open your package.

Getting Customers to Promote You for Free

Once you’ve wowed your customers with free, fast shipping and a great deal, the experience needs to continue when they open the product package.

Pay special attention to the wrapping of the package, the messaging within the packages and any promotions you include. All these things are part of the customer experience, which will make or break the relationship and any free promotion you get from the customer.

If your packaging is unique, interesting and enjoyable, it is likely they will share it on social media or at least send it to a friend to see. Word of mouth and social media advertising is very powerful and can turn your dead stock into a part of your marketing campaign.

What to Look for in an Order Fulfillment Company

As you choose the company that will fulfill your orders, keep in mind that their commitment to their promises to your customers. If they can’t deliver product when they say they will, your customers are going to blame you, not them.

Working with a company that has a great reputation for following through on their promises is a must. Not only should they offer long-distance shipping, but having same-day delivery allows you to get packages to local customers at the speed of light.

Read customer reviews, speak with the sales team and even call customer service to make sure there is a good match between your companies.

Keep the Inventory Moving and Customer Satisfaction High

Slow-moving inventory can be a thing of the past. Offering the best shipping services to your customers will put you out in front of the competition that is skimping on shipping services. Speak with our professionals today to learn more about how we can help you and your business.

shipping restrictions

Shipping Restrictions: What You Can and Can’t Ship

shipping restrictions

shipping restrictions

Since the inception of the United States Postal Service, we have been ‘shipping’ things back and forth to each other across valleys and mountains alike. It’s a great way to keep in touch with friends and family – sending care packages and gifts. Or leftovers from childhood. Or trinkets from your travels. We like sending things to others because we want to share our environments with them. Especially those that live particularly far away.

Whatever you’re sending, you need to be sure there are no shipping restrictions associated with the items in your outgoing packages. Every service, from the USPS to FedEx and USPS, and other carriers have shipping restrictions. These restrictions range from limitations on items and how they’re packaged to that of which may be considered illegal activity.

We’re here breaking down a list of shipping restrictions across the globe so you can rest easy when you’re sending something in question. Keep reading to learn more.

Alcoholic Beverages Come With Strict Shipping Restrictions

It is absolutely illegal to ship alcohol through the United States Postal Service. There are no acceptions to this rule.

If you must ship alcohol, you’ll need to learn about the specific guidelines and regulations in your state.

Generally, you can ship alcohol via FedEx if you’re licensed to do so. UPS doesn’t accept shipments of beer or alcohol for delivery to consumers. But UPS does ship between selected states depending on the nature of the transaction.

When shipping alcohol, it is imperative to wrap it with several layers of soft packaging to prevent leaks if it breaks or becomes compromised. You’ll also need to include the Adult Signature Required option on your shipping package. The Adult Signature Required option will require the recipient to present their ID at time of delivery.

You should try to stick with sending only a few bottles of alcohol at any given time to avoid penalties associated with these regulations that recommend you don’t ship in volume.

Breakables

You can ship things that are breakable but it is strongly recommended that you package the materials accordingly.

Depending on the value of what you’re shipping, it could require insurance. Even while shipping services take the best care possible with your packages, accidents happen and breakables do break.

Follow the packaging guidelines set forth by your carrier. Most carriers recommend selecting a box that is at least two inches larger than the item you are packaging in all directions. Then, put three inches of padding on the bottom and cover the item(s) with three more inches of padding.

Padding material should be something like bubble wrap or peanuts. Something that will withstand impact, such as dropping.

Computers and Electronics

The post office notoriously asks if you are shipping items with lithium or ion batteries because they have shipping restrictions associated with these items.

Computers and electronics often have lithium or ion batteries and they can ship with any carrier. You’ll need to find out the shipping restrictions for each carrier based on how and what you’re shipping. It will also depend on where it’s going that could cost additional fees.

Generally speaking, batteries should remain in the device that is shipping and they should be small batteries. Make sure if you’re shipping something with a particularly large battery that you’ve checked the shipping restrictions with your carrier.

You should probably insure electronics and technology items because they can damage easily, even if you pack them well.

Perishables and Baked Goods

It’s okay to send food and crafts made with perishables but again, pack it well and pack it accordingly. You’ll also need to select faster shipping so the items don’t go bad in transit.

Check with your carrier about how you should specifically package food items, especially if they need to be kept cold.

Firearms and Hazardous Materials

Guns and ammunition are prohibited through the United States Postal Service.

FedEx will ship firearms as defined by the United States Gun Control Act of 1968, but only between licensed importers. Individuals may ship to licensed importers or manufacturers and dealers. Likewise, these importers etc. may ship to individuals.

UPS accepts handgun shipments by next day air. You can ship rifles and shotguns using UPS’ ground service.

Hazardous materials include items like gasoline and explosives. You may not ship these items with any carrier. There are no exceptions to this rule.

The shipping restrictions for hazardous materials are maintained in the commercial sector and should not be violated.

Tobacco

FedEx prohibits the shipment of tobacco but UPS does accept shipments from shippers with the proper licensing. Shipping restrictions surround local and federal laws.

You can ship cigarettes and smokeless tobacco through the United States Postal Service. A Post Office or Postal employee must approve the package prior to shipment.

Live Animals

You can ship live animals with UPS from any UPS shipping facility for next day delivery only. You may not ship on Fridays or before a holiday in the origin or destination country.

FedEx ships zoo animals and horses but does not accept household pets such as domestic cats and dogs. Live fish are not accepted.

There are some animals that you may ship with the USPS but you should check their shipping restrictions. Mostly these conditions apply to special shipping options for animals such as live, day-old poultry, or adult birds.

When You’re Shipping

Whether you’re shipping across the street or around the world, there are regulations for your packages across all carriers.

Make sure to pack your boxes efficiently so that items won’t rattle and break or become exposed in transit. It’s always a good idea to get insurance on your packages. Your carrier should always provide you with a tracking number for your package so you know where it is and when it’s delivered.

As an added security measure, you should always notify recipients of packages that are getting delivered if you don’t ask for a signature on delivery. This will ensure that your recipients know when to expect the package.

When you’re ready to ship your next package, contact us for superior service and rates.