In electronics, stock loses value while it sits. A phone model drops in price when its successor launches, and a laptop configuration goes stale when the next processor generation arrives. Inventory turnover, meaning how many times you sell through your average stock in a year, is one of the most useful numbers a retailer can track.
Measure it first
Inventory turnover = cost of goods sold ÷ average inventory (at cost).
If you sold ₹60 lakh of stock (at cost) last year and held ₹10 lakh on average, your turnover is 6: stock sits about two months on average. Then work it out by model. The store average hides the three models that have sat on the shelf since Diwali.
Buy smaller, more often
The biggest lever is the buying side:
- Order to sell-through, not to discount. A bigger order at ₹200 less per piece isn't cheaper if half of it sits for three months.
- Reorder weekly on fast movers instead of monthly.
- Post buy requests when you need stock, rather than holding safety stock of everything. On Elex Exchange, sellers with your model are told when you post, so restocking a fast mover can take hours, not days.
Clear slow stock early
The first price cut is the cheapest one. Set a rule, for example any model unsold after 30 days gets action:
Sell it to another trader
What's slow in your city may be in demand in another. List the stock on Elex Exchange: buyers with a matching request are told as soon as you post, exact matches first. You can post many models in one go, with a row per model for quantity and price.
Keep your listing current
Listings on Elex Exchange stay live for a set number of hours, so the market only shows current stock. If the stock is still with you, renew the listing from My Listings in one tap. An expired listing can still be renewed for a while.
Post without showing your name
If you'd rather competitors didn't know you're clearing a model, post it anonymously. Your listing still carries the verified mark, and the stock still shows on the market.
Watch the calendar
- Launch cycles: sell down the outgoing model before its successor is announced.
- Festive season: stock up before Navratri and Diwali, and avoid being left with heavy stock in the weeks after.
- Price drops: a brand's official price cut lowers the value of every unit you hold. Keep stock of models due for one lean.
The payoff
Faster turnover means less cash tied up, fewer forced discounts and more room to buy the models that are moving now. Register your business to post stock and buy requests. Registration, browsing, posting and contacting traders are free, with no commission.