How Online Retailers Can Eliminate Excess Inventory
Avoiding and reducing excess inventory has become a top priority for retailers. It is a problem of all kinds that sellers face at some point in their lives, whether it is because of economic failure, the wrong desire, or just investing in products wrong.
But the current global situation makes this a hot topic for many sellers, both domestically and internationally.
In some product categories, rising concerns and economic uncertainty are reducing online purchases. Therefore, some brands and retailers realize that they have mistaken the demand for their products and end up with a larger inventory than before.
If you are a marketer facing excessive stock pressure and want to prevent this from becoming a major problem in the coming months, there are still many ways to reduce these issues, remove the indicators and keep running.
Unfortunately, there is no one-size-fits-all approach. Many factors come into play when deciding which solution is right for you, from your budget to your specific product type to your ultimate business goals. Keep experimenting and find out what works for your business.
Below are some of the recommended advertising and marketing strategies that the marketers we work with have had success with.
[Keep in mind that these tips are for sellers (ie direct sellers). Models with special challenges have limited inventory, and we will address them specifically in an upcoming blog.]
How much to spend on advertising your product range – or whether to spend at all – is a tough question for marketers. It all depends on your profit margin. After deducting advertising revenue, would you be profitable with these product lines? Or does it make sense to dump the inventory or put it on a discount seller? These are important questions to ask yourself when considering the plans below.
Pay attention to your paid search
When it comes to paid search campaigns, you should always be testing new keywords, both broad and long, to find the right combination for your budget and profitability.
- Play the long game. One of the most common mistakes advertisers make during peak marketing times is to spend too much money on peak days and blow their budgets. But many shoppers look for deals in the weeks leading up to these traditional shopping periods, and the weeks after. If you want to boost your product’s passive segment, you can reach potential buyers more effectively – and at a lower cost per click – at a time when competition is low.
- Focus on product design. Good segmentation is the key to effective advertising. Consider separating your promotions from Google Merchant Promotions by different product categories, such as bulk items, to exclude those products.
- Organize your list. Use the brands in your Google and Bing links to highlight the types of products that have high listings, and organize more aggressive campaigns around them. Dividing campaigns by profit margin (eg, leads or leads) can also be an effective strategy to test on your social media channels like Facebook.
- Throw away the gift. When thinking about promotions or giveaways, consider promoting your low-cost products as a way to give your customers something to buy.
- Upgrade the product package. Grouping products into a single SKU is often a good strategy for retailers trying to promote add-ons, increase awareness of certain products, and move inventory. Run targeted advertising campaigns to promote these packages to consumers as the holiday season approaches and passes. Product mix is also useful for increasing your average order value (AOV) and increasing the ROI of paid search campaigns.
- Find competitive advantage. If you have a stock issue, a competitor may also have a stock issue. Perhaps their problem is lack of inventory due to delays in the supply chain. Watch out for competitors and look to make money by selling to those who have similar products but are struggling to meet demand.
Test a new marketing campaign
Advertising has become an important thing for every seller who wants visibility for his products in the market and other business sites. But because everyone is doing it, your efforts should be very progressive. In addition to experimenting with the different types of advertising available to you, here are some other strategies to help you rethink your approach to advertising:
- Be more targeted with your Amazon ads. Whether you play defense on your product description page by protecting your own ASIN or beat your competitors by offering theirs, sponsored ads can give you increased conversion rates. When you’re running sponsored ads, updating the product’s front-end changes can help
- Get a recommended presentation. Buyers may not be familiar with your product because it is slightly different from the products their competitors are looking for. Sponsored Ads can help you increase product awareness by targeting competitive ASIS directly below the Buy Box. You can also upgrade any upgrades you are currently doing.
- Try Sponsored Videos. If you are also a registered brand and have access to promotional model options, video campaigns are a great new way to present branded content that sets you apart. Again, departmental campaigns (eg, branded or unbranded, top sale or sale). overstocked) is always a good practice to create the best performance when advertising.
Bring back interested customers
It is a well-known fact that it is cheaper to keep an existing customer than to acquire a new one. Bringing back the original customers of your product (or those who have been interested in your product) can be very useful and cost-effective in reaching potential buyers.
- Use the opportunity to resume advertising. In addition to retargeting search and social media advertising, Amazon Product Display Advertising allows you to target a specific audience on Amazon, including those who have already viewed your product.
- Segment your mailing list. Reach out to your recent (and historical) customers to remind them of your brand and product line. Perhaps a recent client needs an add-on? Or an older market that needs a new model? When segmenting your list, try to create a group just for business seekers who bought into an old promotion you ran and then offer a new promotion that might grab their attention.
Improve your product listing – again
Taking the time to optimize your product listings is E-Commerce 101. But it may be time to review them and ask yourself if you can improve. Think about your customers. Consider how they do business. where they do business. And what they are planning this month, this season and this year. What can you do differently to get their attention?
- Review your search terms. The terms you provide in the subject area of your marketplace template may be outdated and need updating. Improve your listing by adding new product descriptions that can help their search results.
- What does your product name say about your product? Likewise, tweaks to your title can help draw more attention to the product you want to move.
- Have you updated your image recently? For some things, and especially in certain categories (for example, fashion), it can be a good idea to use good, high-quality photos and videos to enhance your image to attract new clicks.
- Product mix within the same SKU. As mentioned above, product packaging is a proven way to showcase complementary products and raise awareness of lesser-known products.
- Testing and publishing plans. Repricing can be a sophisticated strategy to help you achieve various business goals. They are not all the same. You can choose between algorithmic feedback, rule-based feedback, or speed feedback to help you move products and stay within your desired profit margin.
Expand into new markets or new regions
Expansion is often seen as a positive and a byproduct of growth. New regions or new channels mean new customers.
But expanding into new channels and countries makes sense if it’s profitable. Expansion becomes a bad business plan when it stretches you too far or you don’t have the resources to supply, store and deliver products to new countries.
- Explore the new landscape in your current market. Entering international markets can increase customers and sales. But you don’t have to learn a new business. Did you know that Amazon operates in 12 different countries, offers Prime members in more than 19 countries, and delivers more than 100 products? The Amazon Global Selling program is an option to “test the waters” of business across borders and open your products to buyers who shop on Amazon. eBay also has a worldwide shipping program that handles international shipping and customs procedures for you.
- Find channels that are looking for products like yours. Looking for a fresh start in a new market? ChannelAdvisor’s Commerce Network is an interactive portal that allows channel marketers to discover, attract and connect with each other.
Think of social channels as an extension of your product page
Social media offers a great opportunity to build a new audience for your product, whether it’s through giveaways, impact research, viral trends and more. Depending on your industry, one thing to keep in mind is to avoid marketing your new product by focusing too much on the promotion of your old product.
- Try a new channel. TikTok is no longer a secret, but its influence continues to grow exponentially. Consumers are turning to social media to find deals, even if they can’t buy them there. According to Marketplace Pulse, a video titled #primeday2022 was viewed 52 million times on TikTok during the sale this summer. Even if you don’t advertise on channels like TikTok or Instagram, think of ways to increase awareness of your product this holiday season.
- Take the hassle out of the buying journey. Consider any channel where your product appears as a buyable channel. In your social media, email promotions, or other digital touchpoints, use buyable media to enhance your product’s customer journey and remove any barriers to converting an interested customer.
Review your next step
Making major changes to your fulfillment process is a long-term strategy and affects all of your inventory, not just inventory.
But in addition to discounts, offers and new channels, you can also see if changes in your fulfillment process help bring in orders. Whether you’re reducing your free shipping threshold, using your data to drive shipping pricing strategies, or working with a third-party logistics provider (3PL) to help you increase your efficiency , focusing on elimination can help you reduce debt and be able to pass. save money for customers (which makes your product more attractive).
Having the right amount of inventory at all times can seem like a good idea. But it is not always like that. There are still many ways to eliminate excess inventory and keep orders moving.