What are the most common overstocks on the market?
Author: John Coorey
Overstocked goods can be a real headache for many business owners, but some types of products are more prone to becoming obsolete inventory than others. So what are the most common overstocks and why are they so prone to being left on the stockroom floor?
Out of date food is the most common form of overstocks
Out of date food is one of the most common types of goods to be sold at a reduced rate after becoming obsolete inventory. The problem with food such as canned goods is that it has a limited lifespan and comes with a ‘best before’ date as standard. As a result, if orders are slow or demand falls the retailer is left with out of date food that is no longer desirable to supermarkets or grocery stores. However, out of date food is not unsafe to consume. If a product passes its ‘best before’ date rather than its ‘use by’ date it simply means that the product has decreased in quality slightly. Nutritional values may be affected but there is no danger in eating the products. Out of date food which has passed its ‘best before’ date does not need to be destroyed and can still be sold, usually at a reduced price.
The clothing trade is also prone to getting tied up with overstocked products. This is the reason behind the frequent seasonal sales that you will find on the high street several times a year. Fashions change quickly and shops are keen to supply shoppers with the most up to date range, so anything that is deemed ‘last season’ will be classified as overstocks. Changing weather also encourages shops to rotate their stock frequently so most obsolete inventory is sold off in late autumn and late spring.
The electrical industry often suffers from overstocks
Another industry that is heavily prone to the problem of overstocks is the electrical industry. Technological innovation is at an all time high and retailers are struggling to keep up with demand. Sadly, that often means that products go out of date very quickly. In a similar way to the clothing industry, electrical manufacturers and retailers are subject to changing fashions and will frequently be left with obsolete inventory when a new product replaces an existing one. Although they still work perfectly, these products can decrease dramatically in value within weeks.
Actually, any retailer can suffer from overstocks
Overstocks come in all shapes and sizes and any retailer can be left with excess product that they struggle to sell on. If you find yourself in this situation there are several ways to find stock buyers who can help to ease the financial burden. Discount retailers, wholesalers, deals websites and offline auctions are all possibilities. You can also contact a dedicated stock buying company such as Coorey & Co. We’re always happy to talk you through your options and help you find the best price for your overstocked goods.
Author: John Coorey
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