The Real Reason You’re Drowning in Inventory

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Struggling with excess inventory that just won’t move? You’re not alone. In today’s episode, we’re diving into one of the most common challenges retailers face: what to do with all that unsold inventory—and, more importantly, how to stop it from happening again.

Here’s the truth: it’s not always about running another sale or marking things down (though we’ll cover that too). Often, the biggest problem with excess inventory starts long before the markdowns… and it’s all about how much attention and strategy you’re giving each piece.

The Real Reason You’re Drowning in Inventory

After working with thousands of retailers and coaching through Retail Bootcamp for eight semesters, I’ve found a common trend—retailers often have excess inventory simply because they didn’t give it the attention it deserved.

You go to market or hop on Hubventory, and suddenly, a flood of new inventory arrives all at once. You focus on promoting half of it—creating fit videos, styling reels, window displays, and live sales—while the other half gets left behind. The problem isn’t necessarily that the inventory is bad; it’s that it didn’t get the love it needed to sell.

Step 1: Learn from Your Inventory Mistakes

Before you discount, take a moment to analyze your stock. If a product didn’t sell because you never properly showcased it, now is the time to take action:

Reshoot product photos and feature them on your website and social media.
Re-merchandise in-store to give it a fresh look.
Wear the items yourself to generate interest.
Run ads—but only if you have enough stock to justify it.

If the demand for a product has completely faded, it’s time to move on to markdowns.

Step 2: Use Smart Markdown Strategies

The biggest mistake retailers make with markdowns is waiting too long. The longer you hold onto inventory, the less valuable it becomes. Here’s how to clear it efficiently:

Take a big markdown upfront rather than reducing it gradually in small increments.
Use bundle sales—group products together at a discount.
Try ladder sales—offer increasing discounts based on the number of items purchased (e.g., buy two, get 20% off; buy three, get 30% off).
Recognize that inventory is cash—treat every unsold item as money sitting on your rack. If it’s not selling, it’s costing you.

Step 3: Know Your Inventory Metrics

Use your point-of-sale (POS) system to track aging inventory reports. Ask yourself:

How old is this inventory?
What’s the demand for it now?
Is it seasonal, and if so, when does it expire?
Do I have too much of the wrong inventory (e.g., winter sweaters in summer)?

Treat your inventory like perishable goods. Just like groceries, if you buy too much at once and don’t use it in time, it will expire—and you’ll lose money.

Step 4: Optimize Your Store for Visibility

It doesn’t matter how great your inventory is if no one sees it! Whether you have a brick-and-mortar store or an online shop, make sure your business is attracting traffic:

Check your Google presence. If Google doesn’t recognize you, potential customers won’t find you.
Use analytics tools (available in your Hubventory dashboard) to track traffic sources, time spent on your site, and other key metrics.
Improve your SEO to ensure your store ranks in searches.

Final Thoughts

If you’re struggling with excess inventory, don’t just buy more—learn from your past purchasing and promotional habits. Adjust your strategy, implement markdowns wisely, and ensure your store is getting the traffic it needs to convert stock into sales. Need more help? Jump into our groups, ask questions, and let us know what other tips you’d like to see!

We’re here to help—let’s move that inventory and keep your business thriving!

Ready for more help?

Log into your Boutique Hub dashboard to check your analytics, scorecard, and get actionable insights to boost your visibility and traffic.

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