Excess inventory represents frozen capital, and managing it requires careful consideration. Here’s how to approach the situation: 1-Market Analysis: Understand market trends and demands. 2-Profit Margins: Decide between selling at a lower margin for quicker turnover or holding out for higher profits with slower sales. 3-Perishable Inventory: Prioritize selling items that are time-sensitive to avoid losses. 4-Selling at a Loss: Consider selling at a loss to prevent larger losses down the line. 5-Storage Space: Optimize storage by prioritizing high-demand items to maximize efficiency. Balancing these factors can help in effectively managing excess inventory while minimizing financial impact.

Excess Inventory should be sale on discounted prices. Because it hold huge amount of capital, Carrying cost, outdated fashion products, chances of loss & damage also increased.

Discounting is better than waiting... Through Discounting we can quickly convert inventory into cash, reducing holding costs (opex) associated with storage, insurance, and obsolescence. The longer inventory sits, increase risk of depreciation or becoming unsellable. Early discounts can eliminate this risk.

There can be different approaches to handle the excess inventory. Best decision may be taken by considering the factors like holding costs, obsolescence, winning customer loyalties. However, the most important aspect should be looking inwards and finding the causes which led to piling up of excess inventory. Without weeding out the root cause you will be facing the similar problem very shortly.