What to Do with Excess Inventory: The Wholesale Action Plan

What Is Excess Inventory and Why It Matters

Excess inventory isn’t just unsold product, it’s locked-up cash, tied warehouse space, and a missed opportunity to reinvest in next season’s growth. For fashion brands and retailers, understanding the real financial and operational impact of overstock is the first step toward smarter wholesale management.

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With consumer demand shifting rapidly and sell-through windows shrinking, having a data-driven approach to inventory visibility is no longer optional, but crucial to survive in an evermore competitive market.

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Excess Inventory: What to Consider at a Glance

• Understand the true cost of excess inventory: Learn how unsold stock impacts cash flow, storage, and future growth potential.
  
• Improve forecasting accuracy with real-time data: Discover how integrated digital tools help brands predict demand and reduce overproduction.
  
• Move surplus stock strategically: Explore smart discounting, bundling, and multi-buy tactics that protect brand value while driving sell-through.
  
• Strengthen Supplier & Production Planning: Build data-sharing partnerships and negotiate flexible MOQs to align supply with real demand.

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‍Why Wholesale Brands Struggle with Excess Inventory

Overstocking is a common challenge in fashion wholesale, often caused by a mix of operational and market pressures. Some brands over-order due to inaccurate demand forecasting, while others make the mistake of agreeing to supplier MOQs that were too high for their brand to ever realistically sell.

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Sometimes, overstocking occurs after experiencing a stockout, with the fear of the issue repeating, leading brands to then order far too much stock. Sudden consumer shifts or economic factors such as tariff announcements or new tax announcements can halt spending and leave brands with unsold inventory piling up. 

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Turning Surplus into Strategy: The Wholesale Action Plan

Every brand faces overstock at some point , the difference lies in how effectively it’s managed. The most successful brands approach excess inventory as a strategic opportunity rather than a loss. By connecting digital showrooms, data analytics, and global retail partners through JOOR, brands can re-route excess stock, drive sell-through, and protect margins without heavy discounting.

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Improve Forecasting and Use Real-Time Inventory Data

Poor forecasting is one of the main causes of excess inventory, but smart digital tools can make a significant difference. With the right integrations, brands can sync product, inventory, and order data for real-time, accurate stock visibility.

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These seamless connections can help prevent costly errors, enabling quicker adjustments to forecasts and replenishment. Beyond technology, analyzing historical performance alongside market trends and wider industry insights can help brands build a more accurate picture of future demand. 

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Apply Smart Discounts, Bundles, and Promotions

When faced with excess inventory, strategic pricing can help move stock without compromising brand value. Instead of trying to entice buyers with a markdown that might make them question your product’s value, try implementing tiered pricing and gradual discounts over time (e.g., 10% off, then 20% and finally 30%). This makes a discount more justified in a buyer’s mind and also lets brands make large discounts without damaging their reputation.

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Another tactic to sell excess inventory is bundle pricing. Pair slow-moving items with more popular products to create an attractive package deal that increases the perceived value of the excess stock item. Multi-buy promotions, such as “buy one, get one free,” can also help clear stock quickly, but should be used carefully to avoid diluting brand perception.

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Prevent Future Excess with Better Supplier and Production Planning

To minimize future overstocking, brands should work on building stronger supplier relationships. By having open lines of communication with suppliers, brands can share data to help with production planning and negotiate smaller MOQs more easily.

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Smarter planning also means distinguishing between core, proven styles and high-risk, trend-led pieces. Managing these categories separately, and tailoring assortments by region, helps brands align supply with demand, maximise sell-through, and reduce the need for markdowns.

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How Technology and Virtual Showrooms Help Optimize Inventory

Brands can use JOOR’s virtual showrooms and digital line sheets to present collections to global buyers without the need to create physical samples, which helps reduce inventory waste. These tools also capture valuable data on buyer interactions and preferences, which can help with forecasting and allow for more accurate planning. 

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Additionally, JOOR’s Shopify integration allows for seamless data flow for real-time inventory updates, while its in-platform messaging systems make building stronger supplier connections simpler. Together, these features empower brands to plan smarter, sell more efficiently, and minimize the risks of excess inventory.

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Ready to manage inventory in a smarter way? Request a JOOR demo today.

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FAQs

How can virtual showrooms help move inventory?

Virtual showrooms give brands global, 24/7 visibility, allowing buyers to explore collections anytime, anywhere. This constant accessibility expands reach, speeds up the sales cycle, and helps brands introduce new inventory to market faster.

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How do I know if my inventory levels are too high?

If you are holding stock for an extended period of time with limited orders, or you’re finding your brand is lacking capital, it could be a sign that your inventory levels are too high. 

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How can I prevent extra inventory in the future?

Implement real-time data updates, improve your forecasting, and try to negotiate smaller MOQs in future to reduce your chances of excess inventory. 

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Which sales channels work best for selling surplus inventory?

Surplus inventory can be sold to discount stores and outlet retailers, who will often buy significant quantities of inventory.

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What are the best ways to reduce excess inventory costs?

The most effective way to reduce excess inventory costs is to try and sell as much of it as possible. Use various discounting strategies, like bundle or multi-buy pricing, to entice buyers.

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