Liquidating a small retail business

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Turn your unwanted inventory into a “gift with purchase.” If your unwanted inventory could be useful to the majority of your customers, consider offering the surplus product as a free gift for customers who spend more than a certain amount in your store. Online marketplaces, including Ebay and Amazon, provide an ideal way to sell excess merchandise fast.You can either use an auction model, in which you can set the lowest price that you’re willing to accept for the item, or use a set pricing structure.If you don’t want to do the work in-house, consider using an online auction service company to handle your sales; however, you’re likely to lose a substantial amount in commission fees.

You may lose out on some potential profits, but you’ll be able to clear the space quickly and receive cash immediately.If you’re using a set price, be sure to research what other sellers are charging for the same product: Online marketplaces offer access to a broad network of customers, but have much heavier competition than selling locally.It can take some time to market your products online, so consider asking an assistant or intern to photograph the items and list them on your sites of choice.Particularly if your brand is high-end, you may want to use this method to avoid damaging your brand name by offering deep discounts.

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It happens to every retail business owner: You buy too much stock of a certain type of merchandise, and then a newer, better model comes out. Have some extra Christmas decorations lingering around after New Year’s?Or, maybe it’s just not selling as fast as you’d like, and you’re running out of shelf space for new products. Unless you want to sit on the product until next year, cut the prices to entice bargain-hunters.

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