PlayAbly Podcast Episode 35: Turn Dead Inventory Into Brand Gold: Smart Ways to Liquidate Overstock Without Killing Your Margins

If you’ve got shelves stacked with slow-moving SKUs, this episode is for you.

On this episode of the PlayAbly Podcast, we dive into creative, high-ROI strategies for liquidating excess inventory without slashing prices or damaging your brand. From strategic bundling and loyalty point hacks to viral mystery boxes and surprise-and-delight lead gen campaigns, we’re exploring how innovative ecommerce brands are turning deadstock into powerful customer engagement tools.

You’ll learn how a skincare brand boosted AOV with a clever seasonal bundle, how a fitness brand used mystery boxes to drive organic reach and repeat purchases, and how a tea company turned overstock into a loyalty magnet with VIP treatment. We’ll even break down how a pet brand used free toys as a lead gen funnel that converted like crazy.

And of course, we wrap with a look at retail gamification
—specifically, the Buy Now, Win Later model that lets you move stale inventory while delivering excitement, anticipation, and real rewards for your customers. It's part of a growing trend in gamified Shopify experiences
that blend commerce, play, and performance marketing.

Because sometimes, your slowest product is your fastest path to deeper engagement, better retention, and breakthrough marketing.

Welcome to the PlayAbly Podcast, where we dive into the art and science of gamification, customer engagement, and driving conversions. 

At PlayAbly, we turn passive audiences into active customers through shoppable games and playable experiences that transform how brands connect with their customers. Book your free demo here.

Get Your First Month of PlayAbly free when you mention this Podcast during your free PlayAbly Demo - learn how gamification can improve your ecommerce shop at www.playably.ai

Transcript

Welcome back to the PlayAbly podcast, your go-to source for fresh thinking at the intersection of ecommerce, psychology, and performance marketing. With the end of the year coming up, I know everyone has some overstock inventory that just did not sell as expected, was impacted by the economy, or some other reason that leaves it taking up space in your warehouse so Today’s episode is about What do you do when your inventory isn’t moving? 

Dead inventory costs retailers over $50 billion annually in lost profits - but today we're exploring how some brilliant companies are turning that massive liability into pure marketing gold.

You know what fascinates me about this topic? It's not just about the money sitting on shelves - it's about how this problem keeps business owners up at night worrying about their cash flow.

Well, let me share something surprising - we're seeing a complete revolution in how companies handle excess inventory. Instead of slashing prices, they're creating these incredible marketing opportunities that actually strengthen their brands.

Oh tell me more about this first strategy - the bundling approach. I've been known to fall or a bundle because it's a good deal.

So - this skincare brand took their slow-moving SPF lip balm and bundled it with their best-selling moisturizer as a "Fall Skincare Reset" kit. But here's the kicker - it sold out in just two weeks AND increased their average order value.

Hmm... so instead of screaming "clearance sale," they created this seasonal narrative that actually made customers want both products together?

Exactly right! And speaking of clever marketing, let me tell you about this fitness apparel brand that completely transformed their overstock situation with what they called "Surprise Packs" - $50 mystery boxes with 3-4 items from their excess inventory.

The psychology behind that must be fascinating - tapping into people's love of surprises and unboxing experiences.

Well get this - their inventory cleared 40% faster than traditional sales methods, and here's the real gold: 18% of those mystery box customers came back to buy full-price items later. Plus, all those unboxing videos on social media? That was pure organic marketing.

So they essentially turned their excess inventory into a customer acquisition tool - that's pretty clever.

And wait until you hear about this specialty tea brand's approach - they created what they called a "Limited Reserve Vault" for their overstock teas. Instead of discounting, they offered triple loyalty points and early access to future blends for customers who purchased from the vault.

Let me guess - by making it exclusive rather than desperate, they actually increased perceived value?

EXACTLY! They sold through their inventory in just 5 days and saw a 22% boost in premium membership sign-ups. But here's what's really interesting - they created this whole narrative around limited-time access, complete with detailed tasting notes and brewing recommendations.

That reminds me of the Disney VHS tapes that they used to "release" from the vault a few times a year. It was like you can buy Snow White now or you can wait 5 years if you ever want to watch it in your home. Thank goodness for the internet and streaming. You know what's fascinating about all these approaches? They're completely flipping the traditional clearance sale model on its head.

Well, speaking of flipping models - let me tell you about this pet brand that used their overstock as a lead generation tool. They offered slow-moving toys for free, just charging shipping, and collected 10,000 new email addresses. But here's the brilliant part - they converted 17% of those contacts into paying customers.

The economics of that approach must be incredible when you consider the lifetime value of a customer versus the sunk cost of inventory.

That's right - and they didn't just stop at collecting emails. They created this whole nurture sequence educating these new contacts about pet care, featuring their best-selling products, and building real relationships.

So what you're saying is that successful inventory management isn't just about logistics anymore?

Not at all! Inventory isn’t just a supply chain issue—it’s a marketing opportunity. It's about understanding customer psychology, crafting irresistible narratives, and deepening the emotional connection between your brand and your audience.

Take something like the Buy Now, Win Later concept—it flips the traditional clearance model on its head. Instead of discounting and devaluing your products, you turn the purchase into an experience. Customers buy a product and get a chance to win something even bigger—maybe a free gift, a VIP experience, or exclusive access. Now you’re not just moving inventory—you’re creating moments of delight, anticipation, and connection.

So the ripple effects go way beyond just clearing out space on the shelves. This is impacting brand perception, customer engagement, and even loyalty.

Exactly. When you make the liquidation process fun, you're also reinforcing brand value. And here’s what’s really exciting—these strategies aren’t one-size-fits-all. You can mix and match to create something unique to your audience.

We’ve seen brands turn overstock into limited-edition mystery boxes—but add in loyalty point multipliers to drive future purchases. Others are bundling slow-moving SKUs with hero products and layering in gamified spin-to-win mechanics or unlockable discounts based on engagement.

The point is: when you stop viewing overstock as a burden and start seeing it as an activation lever, the creative possibilities are endless.

That really reframes the challenge. It’s less “How do we get rid of this?” and more “How can we make this valuable again?”

Exactly. These strategies show how creative thinking turns business problems into brand-building moments.

So I’ll leave everyone with this:

The next time you’re staring at a pile of slow-moving SKUs, don’t just ask how to offload them. Ask yourself:

How can we turn this excess inventory into an experience that builds loyalty, drives engagement, and strengthens our brand?

Because sometimes, your biggest operational headache is actually your next marketing breakthrough—waiting to be played.

Thanks for joining us on the PlayAbly podcast and we'll catch you next time.