Chances of selling it may go down

A lot toy companies, manufacturers and also retail outlets often face several problems with regards to their inventories. Sometimes, no matter how hard they plan ahead of time, their inventories may either end up short, resulting in an out of stock situation (OSS) or may have acquired or ordered too many of those stock keeping units or SKU, which ends up sitting in their warehouse. Aside from these two major problems, toymakers, importers and manufacturers will also be encountering other issues that may affect their inventory and their business in general.

Toys are usually seasonal and what may be IN today may not be popular tomorrow. Toys unlike those products like a basketball which are popular whole year round, has a shorter “shelf life.” Once the novelty or popularity of these toys wanes down, chances of selling it may go down as well. Remember Elsa of the popular animated movie Frozen? The Elsa doll during the movie’s popularity coupled with the enticing song was selling like hotcake and manufacturers grabbed the opportunity and produced a lot of this item. Importers and retailers, just like the manufacturers, ordered this doll and piled up inventories of Elsa. After almost a year, the movie is no longer as popular and so is the doll, the result a huge inventory of Elsa dolls sitting at their warehouse. 

Wholesale Buyers

Manufacturers, importers and retailers having large quantity of excess wholesale toys, assorted toy closeouts or education toys closeouts, often contact toy wholesale distributors or a wholesale toy liquidator. They know that dead inventory is like money sitting in a checking account earning them no interest. So know from experience that they must act quickly and liquidate their closeout toy inventory. 

Another problems related to this is the seasonality index. It is great if manufacturers were able to deliver the toys they created to retailers before the season i.e. Christmas where people are on a buying spree. If Importers however failed to ship the products on time, chances are those toys may end up in shipyards and the holiday sales may go to waste, and those toys that the retailers ordered may be shipped back to the manufacturers.

We are Closeout buyers

Vendors will also try and contact various national closeout buyers to rid themselves of their toys closeouts and toy overstock. One of the largest toy liquidators is AAA Closeout Liquidators, a trusted and well known closeout buyer, in business since 1979. They specialize in purchasing overstock toys, wholesale toys and games and surplus toys for cash. Another issue that they may face in handling the inventory of toys is projection. Most companies rely too much on their marketing strategies thinking their product in this case toys will be a big hit and will be sold out once it hits the shelves. Unfortunately, a lot of these products are being sold at a cost even at a loss just to acquire what they have spent. It is wonderful if they managed to sell everything, otherwise, these products will be left sitting inside their warehouse, and usually retailers ship it back to manufacturers again with the products waiting to be stored inside the warehouse.

Overstock toys for sale

Having defective overstock toys for sale can also be a headache not only to manufacturers or toymakers but also to the importers and retailers. Just imagine having those robots inside a bulky case. A kid opens it and boom, the robot’s body falls apart. Everybody with this product will surely swamp the retail outlets, not to buy but to return the defective product and with the advent of social media, this toy will never sell as expected by the manufacturer.

There are actually a lot of issues and problems that the manufacturers down to the retailers will face especially those with huge toy closeout inventories gathering dust inside their warehouse.