Everyone buys more than they can “use”. This applies not only to consumers who make purchasing decisions spontaneously and emotionally, but also to sellers – retailers and wholesalers, who usually plan their purchases in detail (or at least they should do so).
Space in the warehouse may also be occupied by uncollected orders, returned goods, or products with slight defects that are not profitable for us to put on sale. Therefore, the key is knowledge of the market and your own customers, as well as detailed checking of the product quality. However, stock lots are often created by experienced trading companies, despite good contact with customers and the highest quality control standards.

Planning errors
Sometimes this is due to an inaccurate assessment of market needs or excessive optimism, and sometimes due to completely independent and difficult to predict reasons, such as a breakdown in the weather (so-called poor season) or the economy (crisis in a given industry or global crisis). Regardless of the reason, excess inventory leads to an increase in costs – disposal or storage and freezing of capital.

How to prevent inventory surpluses?
To some extent, the risk of warehouse surpluses can be minimized by implementing modern, although often expensive, IT systems that monitor data from customers and suppliers, improve supply and inventory processes, and change ineffective procedures. We then usually increase the frequency of orders and reduce their size. Ordering smaller batches more frequently usually involves not only more work, but also an increase in purchase prices. So bad, and so bad…

How to increase sales so as not to be left with surpluses?
There are many sales strategies based on price reduction. A good practice is to reduce the price as the order increases, combining homogeneous products into collective packaging or special sets of various elements. Of course, a discount, promotion or sale will not always make us get rid of the goods quickly, but it can help us if we do not wait with it until the last minute, when the market is saturated or the season is over.

What to do with a product that is already oversaturated on the market?
There are several ways to deal with surpluses. They can be stored (waiting for an increase in demand), given away, disposed of, or resold to another trading company such as STOCKLOTS.

The STOCKLOTS team