Slow moving inventory or popularly known as SMI differs not only from the point of view of sellers or retailers but also across various items. These are those items that have not moved generally over a period of 90, 120 or may be even 180 days.

The first step should be to identify how much storage space is being consumed by such articles. If it is only a negligible proportion then probably the problem is not a major one. However, if the inventory turnover report suggests that it is a significant number then it is best to take some steps to get rid of this burden.

One such step would include revamping the look and feel of the website so that it is easier for the online shoppers to locate the goods.  Besides easy navigation, the visual experience of the visitors should also be enhanced. Hence product description with proper product details and dealing with issues related to click rate can help in overcoming problems associated with slow moving inventory.

Proper marketing and promotions are the other alternatives. Daily or weekly deals catch the attention of the customers and help in boosting up sales. Such offers also help the customers to identify the existence and availability of goods that they were earlier ignorant about.

However, the retailer should keep in mind that it is desirable to keep a handful of items on hand so that it continues to feature in the website. However the optimum number of goods should be finalized only after doing a proper analysis, since no seller would want the warehousing cost to shoot up.

An Economic Order Quantity (EOQ) Model can also come handy in such situations. Such models help in analyzing which cost is minimum- the cost associated with introducing an item into inventory or instead hold an item within the inventory. Hence the optimal order quantity that provides the best long term value can accordingly be determined using this model.

Thus, it is extremely important for sellers to not only undertake the above mentioned measures but also ensure that the system, process and skill development of the organization is improved. This would ensure that slow moving articles are better managed.  Segmentation, guidance and deployment is the 3 step structured approach to tackle slow movers. Timely review and taking the right action in the right time would not only boost service and benefit the organization but also effectively deal with the problem of unwanted accumulation of slow moving inventory.