gennyr

Spring Cleaning - Part 3

Blog Post created by gennyr Employee on Mar 30, 2018

The last area that I want to cover is geared more toward BMVD sellers and entails actual, physical cleaning: Cleaning up your shelves. Our analysis shows that the salability of an item (excluding textbooks and other seasonal items) decreases dramatically after 90 days.

 

Everyone has a different strategy and criteria for culling inventory, but decisions are often guided by the amount of space available to bring in fresher inventory and the need to keep employees efficient when shelving and picking - you don’t want to slow your staff down by having them continually navigate around the same stale inventory time and time again. So when it comes to making a decision about what to cull, you should consider a combination of inventory age, retail price, margin, sales rank, and available shelf space. For inventory age, 90 days and 180 days are common intervals. Some folks do an annual cull.

 

The essential idea is that items in your inventory are paying their fair share of rent. As your cost of holding an inventory increases over time, doing an analysis of your inventory using the above criteria will give you an idea of the “profitable” items on your shelves and allow you to eliminate the unprofitable ones.

 

You can isolate items to evaluate for removal by filtering your inventory in Monsoon (My Inventory -> Browse -> Filter -> enter Filter criteria.) Here is an example of what your filter would look like if you wanted to isolate in-stock items with inventory age greater than 90 and a sales rank greater than 1 million (making sure that “all” is selected):

 

 

But before you cull, make sure that your settings are well-optimized to give your items the best chance of selling.

 

  • Are you selling on the maximum number of marketplaces?
  • Are you using Inventory Aging pricing strategies to become more competitive as items age?
  • Are you using pricing strategies that undercut competitors on slow moving items?
  • Have you lowered or removed your Cost of Goods to allow items to sell at the going market rate?

 

If you are doing all (or most) of the above your need to perform a wide-spread cull will be reduced.

 

See Spring Cleaning Part 1 (Pricing rules and strategies)

See Spring Cleaning Part 2 (Classifications and Smart Classifications)

Outcomes