Your worst nightmare is happening to you. You thought that item was brilliant and you have spent quite a lump sum of money stocking up on it. But no, no one is buying them – no one likes them. You are having a cash flow problem and you are panicking. I bet you are thinking of lowering the selling price of the product – at least I can get some money back from it! Hold your horses, retailers – there may be another way out for you…
First of all, do some analysis and try to understand why they are not selling. Is it because:
1. …it is not well presented?
Revisit your product description and your product pictures and see if you can improve them. You should also ask for other people’s opinion – sometimes they can make you see things from a different angle. Is your description too vague? Are the pictures doing the product justice? Compare this product to your best selling one, or your competitors’ one, and see if you can make any improvements.
2. …no one knows about your product?
Look into your analytics and see if people can actually find the products or not (check your page impression out – if it’s very low it means that people cannot see your products). If this is the case, work on its SEO by using better keywords and building more internal and external links.
You can also promote the product by many other methods such as featuring it on your homepage, sending out e-shots, or doing a shout out on various social media platforms. For something more creative, consider making a short video, or write a blog article about it. For instance, Pinterest is a good platform to showcase your products photos, and Vine allows you to demonstrate your product in a short but sweet 6 second video.
3. …it is too expensive?
Before you drop the prices, consider pairing up your slow moving stock with your strong sellers. For example, you can put up an offer like ‘buy this and get that for 50% off’, or ‘buy this get that free’. This can boost sales and encourage customers to spend more in each transaction.
If you have gone through all these methods and your stock is still not going, then perhaps it’s time for you to drop the selling price. You can take reference of your competitors’ pricing and work out how low you think you should price your own product. Don’t forget to promote the price drop by doing some marketing work!
4. Are they still not selling?
If dropping the price does not help, you can seek help from third party sellers. Although you would not gain as much profit as you wish, you could at least keep your cash flow moving. Some good examples would be Groupon, Wowcher, or our very own clearance store here and on Amazon.