How to Recover Revenue from Surplus Fashion Inventory: A Guide for Fashion Brands and Retailers

Surplus inventory is an inevitable part of business for most fashion brands and retailers. Whether its unsold products from previous seasons or customer returns, even after the traditional sales period ends, some inventory remains unsold. At this stage, many retailers face a tough choice: continue with further discounting, which risks cannibalising full-price sales of current collections, or remove the items from sale and write them off.

But there’s a third option. surplus stock buyers, like SellSurplus, provide a way for brands and retailers to sell their excess fashion inventory in one simple transaction. This approach not only helps recover lost revenue but also frees up valuable space in your warehouse.

In this article, we’ll share five key tips to help ensure you get the best outcome when selling to a surplus stock buyer.

1. Find a Reputable Surplus Stock Buyer

When it comes to selling your excess fashion inventory, partnering with a reputable surplus stock buyer is key. A quick online search will reveal numerous buyers who deal with various types of surplus stock across different industries. However, for fashion brands, it’s best to work with a buyer who specialises in fashion, like SellSurplus. Specialist buyers understand the nuances of the fashion market, such as seasonality and product trends, and can often offer better prices and a smoother process compared to general buyers.

2. Prepare a Detailed Stock List and Images

One of the first things a surplus stock buyer will ask for is a stock list. This list helps them quickly evaluate what inventory you have available. You can usually export this information from your inventory management system, but make sure it includes key details such as:

      • Quantity

      • Brand

      • Product type (e.g., jackets, dresses, accessories)

      • Product descriptions and model numbers

      • Size breakdowns

      • RRP (Recommended Retail Price)

      • Condition (new, returned, etc.)

    Along with the stock list, having clear product images is a huge advantage. Fashion products are often bought based on appearance, and surplus stock buyers need to visualise what they’re purchasing. If your items are still listed online, sharing the URLs can be helpful. If not, taking photos that show the products’ condition and packaging will help speed up the process and ensure you receive a more accurate quote.

    3. Be Ready for Product Inspections

    For large quantities of the same item or high-value inventory, many surplus buyers may request to see samples or inspect the stock before making an offer. This is particularly important for branded clothing or items with specific quality conditions. In some cases, buyers will make an offer conditional upon a final inspection during collection. Being prepared for this can help move the transaction along more smoothly.

    4. Be Realistic About Pricing

    It’s important to approach the sale of surplus inventory with realistic price expectations. If these products had strong demand at full price, they wouldn’t be surplus. Surplus stock buyers typically offer a significant discount compared to the original RRP. The average range is between 5% and 10% of the original price, but for popular or well-known brands, you may be able to get between 15% and 20%.

    Find out more about the financial benefits of selling surplus fashion inventory here

    Remember, the goal is to move unsold inventory that would otherwise sit in your warehouse or be written off. Even discounted sales can recover lost revenue while freeing up valuable space.

    5. Receiving Payment and Arranging Collection

    Once you’ve agreed on a price, most surplus stock buyers will arrange payment upon collection. For larger quantities of inventory, buyers typically handle the logistics themselves, coordinating collection directly from your warehouse. However, for smaller quantities, it may be more economical for the buyer to request that you ship the items to them via courier.

    In either case, it’s important to ensure that you receive payment in full before any inventory leaves your premises. This helps avoid potential complications or delays in receiving your funds.

    Read more about the warehousing benefits of selling your surplus fashion inventory here

    If you’re working with a trusted buyer like SellSurplus, the process should be smooth and straightforward, allowing you to focus on more profitable areas of your business while we handle the details.

    Conclusion

    Selling your unsold or returned fashion inventory to a surplus stock buyer offers an efficient way to recover revenue and regain valuable space in your facilities. By working with a specialist surplus fashion stock buyer, you can ensure a smooth, straightforward process and the best possible return on your excess inventory.

    If you have surplus fashion inventory taking up space, contact SellSurplus today. Let us help you turn your unsold stock into recovered revenue.