Updated January 27th, 2025 – Anyone running a retail operation is all too familiar with the acronym SKU or stock keeping unit. You’re probably also familiar with SMI or slow-moving inventory, if you’re managing your inventory.
What is Slow-moving Stock/Inventory?
Slow-moving inventory is merchandise sitting in your warehouse and not moving out the door. What defines slow-moving inventory varies by business, but generally, it’s defined as SKUs that haven’t moved in 90, 120, or 180 days.
Slow-moving inventory is a problem – it ties up capital and space. No retailer wants products that don’t sell, so how do ecommerce merchants find themselves in this predicament? And better yet, how can you prevent it from happening?
Here are a few common mistakes that lead to inventory issues:
Site Search
Site design and speed are critical in ecommerce. Your customers need to be able to find products quickly. Some products may not sell simply because they can’t be found, not because they aren’t quality items.
Categorize products appropriately, include enough drop-down menus, filter options, keyword search, and have other names for your products in the description. If you can push slow-moving inventory to the forefront on your main category pages, you will get them noticed.
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Product Descriptions & Imagery
Product descriptions are important since the text is key to helping potential customers find them via an online search. Check to see if your current product descriptions provide enough information, like features, sizing, and color, and ensure it 1 keywords that customers use to find that product online. Images speak for products online.
Products MUST be photographed well and from all angles to be considered “good” photos. Take extra care with your slow-moving inventory and give them a little makeover. Style them differently, re-photograph them, and use those images in your email and social media marketing campaigns.
SEO, Marketing & Promotions
SEO is the name of the game, and potential customers need to be able to see your products when they search online. Look at how well your slow movers rank in terms of keywords. Perhaps cleaning up the descriptions and metadata on your site will help. It also pays to keep track of the customers who do buy some of those slow-moving items.
Perhaps you can offer the same at a discount or in bulk. If nothing else, innovative marketing and retargeting campaigns can also help push some of that stock off the shelves and into carts. Another way to use slow movers is to bundle them up as gifts! Teasing customers with a ‘free gift’ option over a certain dollar threshold can help increase average order size while liquidating some of that stock.
Other Strategies for Slow-Moving Inventory
Dealing with slow-moving inventory requires innovative approaches beyond standard promotions or placement. Here are a few fresh ideas:
- Offer Subscription-Based Discounts
Encourage customers to subscribe to recurring deliveries of slow-moving items at a discounted price. This works well for consumables or seasonal products and helps maintain consistent sales. - Collaborate with Influencers
Partner with influencers to showcase your slow-moving items in creative ways. Influencer marketing can give these products a new audience and generate interest that existing campaigns might miss. - Repurpose for B2B Use
If certain products are struggling in the retail space, consider offering them to businesses. Bulk discounts for corporate gifts, event giveaways, or wholesale opportunities can quickly move inventory that doesn’t appeal to individual consumers. - Create Limited-Time Exclusive Bundles
Build themed bundles around upcoming seasons or events featuring slow movers. For instance, curate a “Holiday Prep Kit” or a “Summer Essentials Box” to align with customer needs.
Turning Slow-Moving Inventory Into an Opportunity
Slow-moving inventory doesn’t have to be a liability—it can be an opportunity to refine your operations and boost your sales. By addressing common issues like site design, product descriptions, and SEO, you can increase visibility for slow-moving items and give them a better chance to sell. Implementing creative strategies such as bundling, targeted promotions, and improved placement can further help clear out stagnant stock while maximizing your profit margins.
Managing inventory effectively requires proactive planning and consistent adjustments to ensure a balance between fast-moving and slow-moving products. With the right approach, you can turn these challenges into opportunities for growth and efficiency. Remember, successful inventory management is about making every product work for your business, not against it.
