5 Reasons A Warehouse Sale Is A Great Way To Sell Excess Inventory

5 Reasons A Warehouse Sale Is A Great Way To Sell Excess Inventory

Excess inventory has always been a pain point for retailers, no matter how large or small. The fact of the matter is, even the best teams aren’t able to forecast what items will sell-through or predict extraordinary global circumstances.

With this being said, bloated inventory doesn’t have to be an issue; it can be an opportunity to appease loyal shoppers, generate new customers, and recoup revenue while instilling a positive brand message.

Sample sales and warehouse sales are a great way to sell excess inventory. Here are five reasons why to consider them:

1. It creates a sense of urgency.

People love a good deal. That’s a universal fact. Shoppers will go to great lengths to save money because it’s worth it — particularly for brands they love.

In 1999, StyleDemocracy, previously Paradigm Retail Group, was one of Canada’s first third-party warehouse sale providers in the fashion industry. Its concept came to life after Michael Berg, StyleDemocracy’s President and Founder, liquidated his family’s retail business, Ira Berg. After witnessing how shoppers reacted to the limited-time offers, Berg was able to identify an incredible opportunity to provide brands with warehouse sales as inventory solutions.

With shoppers savvier than ever, warehouse sales are an incredible opportunity to shop for an abundance of products for amazing prices. Most consumers are willing to invest time in a warehouse sale experience because the deals are worth it; this often results in larger transactions. 

why warehouse sales are good for excess inventory

2. Brands get a higher dollar recovery than other excess inventory solutions.

With excess inventory, there are two typical avenues retailers take: warehouse sales or wholesalers. The alternatives to these routes are donating the product, or even destroying the product, which is not only detrimental to the environment but can negatively impact a brand’s image.

Typical wholesale solutions offer a brand pennies on the dollar, while a warehouse sale sells the product directly to a customer and offers a brand higher recovery on these goods.

At StyleDemocracy, inventory is not purchased from brands and instead works off of consignment. This model allows a higher recovery and allows brands to focus on developing a great event, rather than worrying about margin.

3. Brands receive revenue quickly.

Due to the urgent nature of a sale event, traditional warehouse sales typically last no longer than a week. StyleDemocracy’s events last three to five days. At the end of a sale, clients receive funds within three business days. In comparison to a wholesale solution, which typically takes 30 to 90 days for the payment of goods, this is a much speedier recovery.

4. Sample sales and warehouse sales offer positive brand experiences.

When it comes to the options available for dealing with excess inventory, a sample or warehouse sale event is by far the most impactful in creating a positive brand experience.

StyleDemocracy has worked with some of the largest companies in the world, including Ted Baker, Nike, PUMA, adidas, October’s Very Own, Altitude Sports, HUGO BOSS, Nordstrom, and SSENSE, to name a few.

Clients love StyleDemocracy because the model focuses on one brand at a time. The approach fosters a new relationship between the brand and StyleDemocracy’s customers ultimately creating a new subset of shoppers and brand loyalists.

warehouse sale excess inventory

5. Sample sales and warehouse sales get product out into the market faster.

One of the greatest aspects of a warehouse sale is how quickly a brand’s inventory is able to get into the market. Compared to other excess inventory solutions where a brand’s products can sit on racks and shelves of retailers for months or years side-by-side with its competitors. StyleDemocracy’s events have proven to move massive amounts of inventory for clients; it’s possible to move anywhere from 5,000 to 100,000 units of inventory at one event.

If you’re interested in learning more about how a sample sale or warehouse sale can benefit your company, reach out to the StyleDemocracy team for a complimentary inventory assessment.