How to Handle Overstock Inventory: Today’s $1 Trillion Problem

How to Handle Overstock Inventory: Today’s $1 Trillion Problem

14 July, 2023

 Handle Overstock Inventory

Last updated on 25 January, 2024

Written by Content Team

7 Ways to Manage Surplus and Overstock Inventory

It’s almost spring cleaning season! No matter how tight your operation is, your company will undoubtedly end up with overstock inventory at some point. Here are 10 ways that might assist you get your excess inventory solutions.


The truth is, overstocking is a widespread issue in e-commerce. Inventory management is never easy and even the largest companies still deal with excess inventory solutions. There’s no hard and fast rule about the amount of time before things are considered excess inventory. It will depend on the type of the business. It could be weeks, months or even years. Excess inventory management can also assist you prevent a net loss in your business. In this post, you will explore a variety of ways for dealing with excess inventory solutions so that you can still either earn money on your overstock or decrease your losses, thereby boosting your bottom line

What is Overstock Inventory?

Overstock inventory is stuff that for whatever reason, it hasn’t sold within a realistic timeframe. Perhaps you overestimated the demand for a product, or maybe manufacturing quality issues triggered a wave of returns.

In other words, inventory management can be challenging. You need to order things in advance and swiftly adjust to market changes to control your inventory and its costs. It can be mission-critical to find out the strategies to clear off overstock and isn’t simply cost-effective. An overloaded inventory can be a major strain while storage and maintenance costs grow. However, there isn’t enough interest in them. Overstock inventory negatively affects your inventory turnover ratio

Why Is Having an Excessive Amount of Inventory Bad?

Unsuccessful inventory management may be indicated by excessive surplus inventories. So you might be overspending, then. Here are four major costs that come with keeping inventories on hand.

1.Capital cost: The capital cost is the sum of the purchase price for all of the inventory goods.

2.Cost of storage space: The price of the store where your inventory is kept, such as a warehouse or additional space away from your main location.

3.Inventory service cost: Inventory service charges include your inventory's taxes and insurance premiums.

4.Inventory risk costs: The chance that your stock will lose value. The income you might lose in the inventory if you don't sell quickly enough.

7 Ways to Manage Your Overstock Inventory

If your stockroom runneth over, here are a few strategies and tactics that can help you shift your overstock. Before you start putting everything on sale, have a look at the following techniques to properly handle your overstock without damaging your brand. Have a look at various ways to wind up your business with extra earnings.

Sell Your Overstock Inventory Online Marketplaces

The world of e-commerce gives all sorts of new options for business owners to make a profit. If you already manage an online store, your first aim for inventory disposal by offering competitive deals on them. Not only will things most likely move quickly, but this may be a terrific approach to getting new customers. There are many online marketplace platforms available online including Amazon, Flipkart, eBay, Jio Mart, and more that are an excellent way to sell outmoded inventory. When you sell online, you’ll still earn some money for your excess inventory and improve your business’s cash flow.

Charitable Donation With Your Excess Inventory

You may also serve yourself well in the form of a donation to local groups or initiatives to spark client interest. Depending on what you sell and what you’re wanting to move to local organizations can profit from your contribution of store goods. Making a charity donation of your overstock inventoryaround you. Some charity gifts may also be tax deductible, so it’s a win for both your business and the group you’re supporting.

Make Strategies for Excess Inventory Management

Almost every company will have excess inventory from time to time for a number of varied reasons. Economic conditions fluctuate, new inventions occur, and market demand is some of the different reasons for what you anticipated. But whatever your business is, inventory optimization is crucial to preventing excess stock from becoming an issue. You can make strategies to gain excess inventory solutions for your business.

Recycle Your Excess Inventory

If you’ve explored every imaginable option to rid yourself of surplus inventory and still find you have undesired things on hand, you might have to recycle them. You can reuse or repurpose surplus goods to ensure it doesn’t go to waste. It is a good approach to free up your storage space for newer, fresher inventory. Recycling procedures allow maximum capacity for the inventory that produces your business money.

Offer Bulk Discounts

A fantastic strategy to close out inventory is to offer huge discounts on products. Bulk discounts can help drive sales and clear excess inventory in a timely manner. You can also kick this technique into high gear by hosting a sale event. The bigger the event is the better seeing a crowd and signals huge deals.

3. Offer an Inventory Liquidator Your Stock for Sale

Selling your excess product inventory to an inventory liquidator is another alternative if you don't want to deal with the headache of doing it yourself. They'll purchase a large quantity of your product at a markedly reduced cost, then market and sell it independently. If you receive payment in a lump sum, this can help you swiftly get rid of a lot of goods and also enhance your cash flow.

3. Return for a Reimbursement or Credit

This can be the best option for you if your provider permits it and is willing to issue you a full refund or a reasonable discount. Shipping and handling will definitely be more expensive, but at least you may exchange the dead surplus for useful items. This can be the best solution for inventory optimization.


It’s time to take control of your overstock inventory. Eliminate inventory problems as soon as they arise and reduce the danger of having an overstock of items. There are several ways described in this blog post that you can immediately begin implementing. Your bottom line is impacted by overstocked inventory. If you sell surplus stock it will keep a balance between getting the most money possible and continuing to use staff time or other resources. Think about adopting an inventory optimization strategy that is examined annually. If you want to manage your overstock inventory, visiting GoNukkad is an ideal option.

Q. What issues does overstocking inventory cause?

A. Overstock refers to having an excessive amount of unsold inventory in a warehouse, which raises storage expenses and lowers working capital. Ineffective inventory control causes overstock issues like expiration, obsolescence, and decreased returns.

Q. How to handle excess inventory?

A. There are numerous ways to deal with excess inventory, including selling it on online marketplaces, holding auctions, or recycling it

Q. What are the advantages of reducing inventory?

A. Reducing inventory has various benefits, including requiring less warehouse space, less holding inventory costs, and lower insurance costs. Products that have expired or are out of date are lost less frequently.

Q. When should I stay away from keeping inventory?

A. You should stay away from keeping the quantity of rejected inventory will rise if production does not match your quality standards.

Q. What is the best tip to improve inventory management?

A. Here are some best tips to improve inventory management.

1.Audit your inventory

2.Know how to use ABC analysis

3.Use last-in and first-out (LIFO) methods

4. Maintain perishable items using the FEFO principle - first expiring, first-out

Supercharge your E-Commerce Business:

Go from surviving to thriving!

Amplify sales with our expert account management. Unleash your true potential now!

Call Us

Read More
GoNukkad Text
By continuing past this page, you agree to our Terms of Service and Privacy Policy, All rights reserved.