Posted on 05 Jul, 2019
Money is made by not storing the boxes, but moving them. Sellers hold on to their deadstocks for very long, with a hope that they will sell one day, but that never happens due to unacceptance of the reality that the buyers are not ready to accept the worth that you as a seller are putting out there. The fact is, once an item goes on the shelves and stays there for more than expected, it’s a lost cause. There are very rare chances those items would ever make it back to the ‘hot selling products’ list again, and it’s better if you get rid of them as soon as possible.
How can a business owner get rid of their dead stock?
There are different ways businesses can cut loose their dead stock and convert it into cash to realize their true potential. Among all, one of the best ways to convert dead stock into cash is by finding buyers interested in buying the entire inventory and pay a fair price. That said, finding such buyers is quite difficult. Even if you, as a business, succeed in finding such buyers, you won’t have the bargaining power to negotiate the deal in your favour. You can list your dead stock on platforms like Hotshelf before the gross profit on the product erodes to a negative level.
Hotshelf is an online marketplace for all kinds of buyers and sellers, allowing them to connect with each other and sell their dead stocks.
Benefits of listing your dead stock on Hotshelf?
1. Helps you get noticed
Hotshelf is an online platform. It leverages the potential of the ‘World Wide Web’ to allow business owners from the farthest corners of India to connect and trade their dead stock for money. The platform has an expansive reach and it does help you get noticed. Your product listing on Hotshelf has higher chances of reaching the right audience compared to other advertorials. In other words, the online marketplace makes it really easy for potential buyers and sellers to find each other without wasting much time.
2. Adds life to your dead stock
“One man’s trash is another man’s gold.” This saying perfectly applies to business owners who have dead stocks piling up in their inventory. So, listing non-moving inventory on Hotshelf lets businesses add life to their dead inventory. The takers can recycle and use the otherwise useless stock to manufacture new products.
This also helps businesses reduce their carbon footprint. Most industries dispose of their non-moving inventory by either burning them or by dumping them at landfills. This increases the carbon footprint of that particular business and severely impacts the environment.
3. Helps your business save money
Holding on to dead stock costs your business every day. The inventory management cost keeps on killing the gross profits. So, the longer you store your stocks the more you’ll lose: you’ll have to pay for the insurance, you’ll have to hire people to manage the inventory, etc. Therefore, find a way to get rid of your dead stock or list it on Hotshelf. The online platform lets you connect with interested takers of your non-moving inventory to help you convert potential waste into profits.
Posted on 04 Jul, 2019
Whether you’re a local brick and mortar store or a large-scale business organizations, the common cry of all businesses is dead stock. Dead stock refers to the excess inventory which has been on the shelves for a very long time. Since slow-moving inventory also stays on the shelves for a considerably long time, distinguishing between dead stock and slow-moving inventory can be a little difficult.
While the slow-moving inventory is mostly seasonal products which still have a chance to go off the shelves but non-moving inventory, also referred to as dead stock for the obvious reasons, have very rare chances of making it back to the ‘selling’ item list again. Irrespective of whether you are aware or not, holding on to dead stock costs your business and leads to a loss which is beyond time to repair. So, the moment you realize you have dead stocks piling up, find out ways to get rid of them and earn a decent profit.
While you’re finding out ways to convert your dead stock into cash, let’s delve a little deeper into the reasons and find out why inventory turns into a dead stock. You know; prevention is always better than cure. Besides, there won’t be dead stock if you already know what causes a healthy inventory to turn into non-moving inventory and have a plan to avoid that in place. Below is an in-depth analysis of factors that converts a healthy inventory into a dead stock.
1. Incorrect market predictions: Incorrect market predictions is one of the major reasons why businesses end up with dead stock in the first place. Incorrect market predictions = increased risk of ending with excess stock, which, later, would surely occupy space
on the shelves. Once a product hits the end of its life cycle, it won’t sell anymore.
2. Poor product quality and design: Products designed poorly or products that don’t match the design and quality expectations of the customers will soon lose the demand and turn into a non-moving inventory. Though it would not only affect the lifecycle of that particular product, the reputation of the brand also goes for a toss.
3. Inefficient supply chain: Inefficient supply chain leads to longer lead time. Needless to say, long lead time leads to accumulation of inventory which loses their life cycle and never goes back off the shelves.
4. Lacking a dead stock management plan: Holding on to your stock which is likely dead with a hope that they would sell again is only going to cause dead stocks to pile up, which isn’t what efficiency sounds like. Instead, take help from an inventory management expert and formulate an inventory management plan to mitigate the risk and avoid obsolete stocks from accumulating.
What can be done to get rid of dead stock?
There are numerous ways businesses can get rid of their piling up dead stock. For instance, items from the dead stock can be sold as a complementary or free product with a selling product, businesses can announce a sale, etc. Though, one of the best ways to convert non-moving inventory into decent profits is by finding a buyer interested in buying all of it. As a business owner, you can list it on
Hotshelf and wait for interested buyers to contact you. Hotshelf is an online marketplace that lets business owners from distant corners to connect with each other and trade.
Posted on 22 May, 2019
Trends change. What’s hot-selling today will lose the buzz eventually and turn into a dead stock soon, costing your business lots of money. Dead stock, also known as non-moving inventory, refers to products which couldn’t find takers before being removed from sale.
How does a good inventory turn into a dead stock?
Businesses, quite often, even the ones which are well-managed, commit mistakes which leads to non-moving inventory. Talking about that, the three major reasons which cause dead stock are:-
● Incorrect market predictions: Incorrect forecasting = increased risk of ending with dead stock. Once a product hits the end of its life cycle, it won’t sell anymore.
● Poor quality and design: Products designed poorly or don’t match the quality expectations of the customers, will soon lose the demand and turn into a non-moving inventory.
● Bad inventory management: Lack of a good inventory management system is one of the biggest reasons that inventory turns into a dead stock.
● Inefficient supply chain: Inefficient supply chain leads to longer lead time. Needless to say, long lead time leads to accumulation of inventory which loses their life cycle and never goes back for sale.
● Lacking a dead stock management plan: Hoping the obsolete products would sell causes stocks to pile up, which isn’t what efficiency sounds like. Instead, an inventory management plan to mitigate the risk to improve the inventory process avoids obsolete stocks from accumulating.
How does dead stock cost your business?
Non-moving inventory or dead stock has very low chances of getting back on the shelves again. Thus, holding on to them isn’t a good idea. It’s only costing your business more money, leading to loss which is beyond recovery. Here’s how obsolete or non-moving inventory is costing your business.
1. Wasting money in dead stock management: Capital invested in non-moving inventory leads to further loss. If you’re holding up to your dead stock, you’re wasting your money towards its management. Dead stock occupies space which can be used to store other products which are still in demand. The potential loss increases in case the business depends on rented inventory space.
2. Finance & Insurance: Businesses often buy raw products on credit. The longer they hold the stock without liquidating it, the more interest is accrued, increasing the total debt obligation. In addition, products stored in the inventory are secured using insurance - and excess stocks result in higher premiums, which is a substantial additional expense.
3. Paying employees: Pulling out the dead stock from shelves requires employees, and paying them for doing the said task is only adding up to the loss. Warehouse personnel are paid by the hour, and it takes at least a few hours to count and arrange the non-moving inventory. Besides, the longer the inventory is held more it would be moved around, and the administrative cost would keep on adding to the burden.
How to get rid of dead stock without any further loss?
Dead stock is a lost cause. Ditch any plans which lead to no profit. While reusing it a good way to convert the loss into profit, some businesses don’t have the option. Selling your dead stock to those who need it is smart, but finding the potential takers is the challenging part. Hence, there’s a need for platforms which make the task of finding a fitting buyer easier; to solve the problem.
Talking about platforms, Hotshelf, which allow businesses to list their dead stock on their website can be a blessing in disguise. Hotshelf connects business interested in getting rid of their non-moving inventory with potential buyers, ensuring a better bargain.
Posted on 22 May, 2019
Hacks to Bring Dead Stock Back to Life
Dead stock is one term which can bring sleepless nights to business owners dealing in products. A cash-flow killer, the menace of dead stock has compelled several businesses to shut down at various instances. If you’ve a product based business you know how dreadful it could be. Therefore, it is essential that you take care of the non-moving inventory before time runs out and make necessary arrangements to save your business from any unwanted catastrophe. However, have you ever wondered how you would tackle the situation if your products unnecessarily and unproductively occupy the warehouse shelves thereby causing damage to your business? Worry not. We’ve accumulated 3 effective hacks to relieve you from the stress. Go through them and we bet you’ll be able to save a substantial amount of money by creating ways to sell those products that are getting dusted lying there on the warehouse racks.
1) Offer Discounts
A win-win situation for all, offering discounts on unsold products has always helped businesses to get rid of the dead stock and flourish in their respective industries. You can kick-off the idea by hosting a sale carnival in order to draw people to the stores, looking for your products. Running a flash sale can also create a sense of urgency among the audience, thus helping you to clear the stock that is waiting to see the light of the day. This method can even gain you potential customers for the future, as we humans love good deals and are always on a lookout for them. But remember that your decisions are rationale and do not interfere with other business strategies. Take optimum caution while timing and implementing the sale events, because one wrong move can cost you a fortune.
2) Bundle the Products
Bundling the non-moving products with hot-selling ones and selling them at a discounted rate is another excellent way to get rid of the inventory that is becoming useless and obsolete. You can also bundle relative non-selling products together and offer them at an irresistible price as a whole package. If executed properly, it can help you move out a significant amount of immovable products and enable you to recoup the investment. It has been observed that numerous businesses, which implemented this advanced technique of bundling their products, have been able to eliminate the dead stock quite effectively. However, it is important that your strategy is fool-proof and doesn’t lack precision.
3) List Your Non-moving Products on Hotshelf
Although not many are aware of it, yet listing your excess stock on Hotshelf can help you to a great extent in liquidating the non-moving inventory. By listing your dying products on the portal can create opportunities for you to connect with potential buyers, thereby helping your sales to soar and your business to thrive. A trenchant method to curb the plague of dead stock is displaying the non-moving inventory on the website. It can certainly enable you to push the unmovable stock and cover up a considerable amount of loss. Get in touch with Hotshelf and see your dead stock coming back to life. Albeit the fact that these above mentioned techniques can help you immensely in obviating the evil of non-moving inventory, yet it is of sheer importance that you take the necessary measures before time, as they say ”Prevention is better than cure”. It has been evident that businesses fail due to the lack of proper planning and execution of the inventory management system and poor business decisions. Hence you need to make sure that you’re on the appropriate track right from the beginning. A few informed and rational decisions and you’re all set to take your business to new heights of success.