What are some examples of inventory exit strategies?

Online liquidation and trade-in opportunities serve as practical and effective inventory exit strategies. These approaches allow a business to effectively manage excess inventory and recover some value from products that may not be selling at regular retail prices. By utilizing online platforms for liquidation, a company can reach a wider audience and sell off old or surplus stock quickly, reducing holding costs and freeing up cash flow. Trade-in opportunities can also facilitate inventory turnover by allowing customers to exchange old products for new ones, thus incentivizing sales while simultaneously clearing out inventory.

In contrast, increasing product prices may not address the core issue of excess inventory and could further deter potential buyers. Charity donations, while noble, do not constitute a proactive exit strategy aimed at recovering financial value from excess inventory. Holding inventory indefinitely is generally not a viable strategy, as it can lead to increased costs, depreciation, and potential obsolescence of products.