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An Inventory Liquidation Guide for Retail Companies

All companies have to deal with inventory management, even if sometimes the wrong choices are made, foreseeable or not. With poor inventory management, you can end up with costs that could ruin the company, so in times like this it’s important to know all the options you have.

What is Inventory Liquidation?

Inventory Liquidation is a unique way of selling stock, mostly prioritising efficiently moving stock by taking a reduced price for it. This opens up many possibilities to you and your company as you can get rid of costs that the mass stock would have while still turning it into cash unlike something like giving it away.

When Should You Liquidate Inventory?

It’s best to see inventory liquidation as a sort of panic button, when you need stock gone quick to either avoid costs, that will soon come in, or to make space for new stock. When doing this, it’s important to still remember that there will still be downtime between finding an outlet to liquidate the inventory and having it old. This strategy still works as liquidation is extremely quick, but remember it won’t be instant.

Why Should You Use Inventory Liquidation?

It’s important to fully understand what you’re getting with liquidation and be able to weigh up the pros and cons yourself to give a balanced idea on what to do next.

Quickest Sales Available

Liquidation is best known for its fast sales, being the defining feature of it for most of the people using it. This is down to how they utilise sales of bulk stock rather than individual products and taking priority on larger amounts of that bulk stock as liquidators thrive in reselling mass amounts of identical products.

Less Profitability

As a result of the quicker sales, the price they get sold at is decreased compared to what they would normally otherwise the person buying the liquidated stock would have no reason to take your stock compared to regular products.

More Room for Better Stock

One great upside to moving the stock quickly is that you can make room for more stock when it’s needed, as stock for liquidation will take up massive amounts of storage space due to how it’s sold as bulk stock.

Simple Process

Liquidation is much simpler than selling regularly for many reasons, the main one being that you only have to deal with, most of the time, one person rather than several customers. This both reduces time needed to spend arranging moving it and makes things quicker.

How Should You Sell Liquidated Inventory?

Due to how common it is to have to liquidate your inventory, there are many places to sell it. These ways vary in profitability and speed, most of the time being proportional to each other as you sacrifice one to get the other.


If you’re in a position where you have to get inventory gone instantly, auction houses can be great. They often have large communities of people looking to bid on a selection of auctions, so it’s easy to find someone, but do note that you may not get as much as you hoped due to people not bidding enough. For auctions, make sure you pick a good floor price as, depending on the product, it may be likely you’ll end up with that much.


Marketplaces can be great both in person and online in mostly the same ways as they have vast amounts of people that could be potential buyers. For marketplaces, make sure you pick one with the most amount of people that would be interested in your product, though do note that depending on your stock you may have competition that can sell more than you, so make sure to choose wisely where you go.


Hosting sales are good ways to get people who are already your customers to buy more, and oftentimes also bring in new customers that might stay loyal. A flash sale is a good route to go for inventory liquidation as it makes customers think that if they don’t buy now they’ll miss out on your product so buy out of fear of missing out, which then gets rid of the stock quicker.

Bulk Sales

Another good strategy for sales is to have bulk sales, giving the customer a deal for buying several. A common strategy for this sales for ‘buy X get Y free’ which often drives people in as the word ‘free’ entices customers much more than a regular sale. The result is more customers and those customers buying more of your stock than normal, perfect for getting rid of liquidation stock

Sell to Liquidation Companies

Many liquidators will be able to take your stock off you depending on what it is. Selling to a liquidation company offers much quicker sales due to them having the skills and knowledge to be able to get the stock off of you easily. At Pink Liquidation we would be able to take any stock other than food for a good price. Just click ‘sell your stock’ and we can get to organising the sale.

Freebies and Samples

If you really can’t sell it, then you can always give some smaller batches to potential customers to try to get them to want to buy more. While doing this may not directly give profits, it makes the customer want to buy more to experience what your product gives more. For some products, this just won’t work due to how they are, but for some this is a good strategy when all the others can’t work.

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