What is Clearance Sales? Strategy to Increase Your Website Sales

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Usually, clearance sales are carried out by retail businesses to offer goods whose sales are slow because demand is small. That way, you don't pile up too many items in the warehouse. Goods with low sales levels can also be replaced with other more profitable goods.

Often, many business people stock their products or some even sell products based on current trends. Unfortunately, sometimes business people have a lot of inventory but only a few items are sold.

This means they have to think about the right promotional strategy so that product sales run out. To do this, you can apply a clearance sale strategy or commonly known as closeout sales. So, how do you do a proper clearance sale?

Clearance sales are a promotional strategy that is quite effective for adding new customers and increasing business profits.

So, your business can maintain the profit margin it should. So, how do you do a proper clearance sale? Check out the tips in the following article, OK?

What is a Clearance Sale?

What is Clearance Sales? Strategy to Increase Your Website Sales

Clearance sales are a promotional strategy that many people often look forward to, because they are usually held at the end of the year and in the form of a warehouse sale. This form of promotion is carried out by business people to offer goods that are in low demand.

But on the other hand, this strategy is quite effective to apply to your business, because it can add new buyers so that your sales can increase. The products being sold generally have low sales levels and like it or not, you have to use up the stock so that it doesn't pile up in the warehouse.

Tips for Conducting a Clearance Sale

Considering that the goods promoted through sales are old products with low demand, the right strategy is needed so that they can be sold quickly.

For those of you retail business owners who want to sell products so you can get maximum profits, you can try some of the tips below:

1. Select the items you want to sell

Before carrying out a promotion with a product sale strategy, you need to choose what items you will offer.

Reported by the Chron page, you must have a clear method for determining which items need to be discontinued. For example, by using inventory control software to show the ranking of items in a particular product category.

Even if an item has sold well in previous years, failing to outsell other items the following year may be a sign that the item is headed towards obsolescence.

If you want to hold on to these previously successful items in the hope that they will recover later, your business may need to increase inventory costs and provide storage space.

Rather than spending more money on storing inventory, it would certainly be wiser to put the product on sale so you can make a profit and replace it with another new item.

2. Determine the Right Time

Another tip that you need to apply if you want to sell products on sale is to determine the right time. Determining the right time will certainly increase sales so that your goods can be sold quickly.

For example, if you want to use up seasonal products from the remaining sales from the previous year, offer these items according to the season.

For example, offering warm clothes at the end of winter will certainly be much more efficient than selling them during the summer.

3. Pay attention to how the product is placed

Don't forget to pay attention to how the product is placed (displayed) when you hold a clearance sale. It's best if you place the products on sale in strategic places. Avoid placing discount products in places that are difficult for customers to reach.

In this case, you can consider placing the product near the shop entrance so that it is easy for potential buyers to see and reach.

Apart from that, you can also place items on sale at strategic points near the cashier. So customers who want to pay for products can see them while waiting in line at the cashier and are encouraged to buy more.

4. Give Massive Discounts

During a clearance sale, don't hesitate to offer big discounts. For example, by providing special discounts ranging from 50-70%.

With this strategy, the items you have on sale will certainly sell faster than just offering a 10-30% discount. Promotional strategies in the form of sales like this usually have the principle that the slower the commodity is sold, the bigger the discount will be.

So, the products offered will more easily attract customers and will sell out more quickly.

5. Set an Attractive Price

Apart from determining the amount of the discount, you also need to know how to set an attractive price so that your product sale strategy is successful.

Generally, using actual prices on product displays will be more effective at attracting sellers than providing signs in the form of percentages.

You can try setting discount prices gradually. For example, by providing discounts of 30%, 50%, up to 70% and showing the actual price in the product display. This is done to attract customers while keeping your business competitive in the market.

6. Promote Offline and Online

So that your sales strategy is successful in providing you with optimal profits, carry out intensive promotions. Be it offline or online promotions.

Spread the news about this clearance sale via email, online advertisements, social media, on your business website and even direct mail so that more customers know about it.

Greet every customer who visits the physical store and tell them that you are having a product sale with tempting discounts.

Show them display racks of discounted products or perhaps suggest items to them. Giving customers a bag or basket for shopping can also entice them to buy more.

Benefits of Clearance Sales

What is Clearance Sales? Strategy to Increase Your Website Sales

So, what are the benefits of holding product promotions on sale for retail stores? Here are some of the benefits you will get from the clearance sale:

1. Reduce Inventory

One of the benefits of having a sale on old products is of course that it can help you reduce inventory levels. 

As you know, there are various challenges that may color the product sales process. For example, changes in customer purchasing trends cause store inventories to pile up and disrupt the business supply chain.

When this happens, you need to develop a strategy to remove old products so that they continue to generate profits.

Well, for example by holding a clearance sale. Clearance sales will help you minimize the financial impact of unpopular or over-purchased products, without reducing the price level of other merchandise.

2. Increase Sales

Promotion of goods on sale can also help you increase sales. Goods offered at low prices will usually be more effective in attracting customers to make purchases.

When you hold a clearance sale, your business will get more new customers and make bigger profits.

3. Sell Seasonal Products

Holding product sales can also help you sell seasonal products. Products such as clothing, decorations, accessories and other products often feature seasonal components.

Through a clearance sale, you can move items from the previous season to free up storage space so that the next season's merchandise can come in.

4. Access Products at Low Prices

Clearance sales offer customers a way to access a company's items at a lower price point. For some types of products, such as beauty supplies, clearance sales encourage customers to try new products.

If customers like the product, they may become repeat customers at the regular price point. In the end, this can increase the customer base in your company.

5. Maximize Attendance

Another benefit of holding a product sale is maximizing attendance. Event companies or services selling tickets for date-sensitive events can use this clearance sale strategy to maximize profits and attendance.

Unsold seats, tickets or special upgrades may be sold at a discount closer to the event date. So, the company can still make a profit.


So, you can use social media such as email, Instagram, or online sales websites so that more customers know. Likewise, if you have an offline shop, you can use a banner that says "Sale" and show a display rack for products that are on sale or convey it directly.

Those are some tips for implementing product promotion strategies using clearance sales. Have you ever done promotions by means of sales? If not, are you interested in applying it to your business?

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