In today’s digital world, inventory management and data tracking is a critical part of any retail business. One important step in this process is to account for items you can’t sell by marking them as “non-sellable” or “non-saleable” in your inventory management system. By doing so, you will be able to remove obsolete inventory from on-hand and accurately track the quarantined merchandise.
Why is it important to track inventory that is not sellable/saleable?
- You receive a damaged product from a retailer and need to return it.
- A customer returns an item that is broken or damaged.
- Your store experiences an unforeseen disaster such as a flood and you need to submit an insurance claim.
- You experience inventory shrinkage or loss.
It is essential to remove your non-sellable inventory from your on-hand inventory count because you don’t want to have merchandise in your system that you can’t sell. You need to have data that is up to date and accurate and shows which products are actually available for the customers who want it. Don’t disappoint customers or cause confusion if you don’t have to.
By classifying an item as “non-sellable,” it means that it is unable to be sold and therefore necessary to replace, even though it was not purchased. This will ensure that your on-hand inventory count is up-to-date and you will know what you need to reorder.
The next question you might be thinking is, “what should I do with my non-sellable inventory?” Well, there are a couple of solutions to get the most out of these items.
What should you do with your non-sellable inventory?
- Return to Supplier – Items will be returned to a supplier as non-sellable inventory.
- Discard – Items will be thrown out.
- Donate – Items will be donated to a charity or non-profit organization.
- Sell to Store Owner – Items will be purchased by another store.
- Sell on Secondary Market – Items will be sold on a secondary market such as eBay.
Regardless of what you do with the merchandise, your priority should be getting it off of your hands so that you can create room for inventory that will sell. Run reports for your non-sellable inventory to track what merchandise has not been reliable and has caused problems with your customers. This will give you a starting point in discussing refunds or marketing dollars back from the suppliers.
By accounting for the items that you can’t sell, your inventory management system will have the most up-to-date data to help you make sales and future buying decisions.
Ready to learn how RICS can help you identify your best and worst sellers to inform and improve your buying decisions? Click here to learn more.