Business Practices
7 Tactics Alexandria Used to Increase Inventory Quality and Sell-Through Rates
Kent Atkinson
Oct 26, 2024
Improve the Quality of Inventory to Boost Sell-Through Rates
Improving the quality and sell-through rates of inventory is one of the few ways to drastically boost profitability (sell-through rates tell how quickly inventory is sold within a given time frame). Most of us have experienced how packing the store with more inventory doesn’t actually increase our bottom line. Besides opening a new location, this is one of the few ways to increase profits at a high level.
How Alexandria Keener Hammond Optimized Inventory
Alexandria Keener Hammond, owner of the successful My Girlfriend’s Wardrobe, has implemented several smart strategies to grow her business from modest beginnings to a thriving luxury resale hub. We explore those tactics blow, first looking at tactics from the selling side—like how to organize inventory, use data, and leverage social media to increase sell-through rates. Then we look at tactics from the sourcing side—how to attract consignors through distinct channels (email, social media, text) to meet customer demand.
1. Establish a Clear Brand Hierarchy
Since the earliest days, Alexandria had a strict accept/deny policy for certain brands and categories. Customers exploring her inventory could expect a consistent level of quality.
"We have everything organized from Level One, which I’ve renamed ‘Do Not Accept,’ to Level Six, which is our luxury brands like Louis Vuitton, Chanel, and Hermes."
Since then, Alexandria has adopted a systematic approach to organizing inventory based on six brand levels, inspired by Sarah Marshall's consignment coaching program: “This setup allows my team to quickly assess what brands we should accept based on demand and quality.” Her categories are:
Level 1: Do Not Accept
This level includes brands that her store no longer accepts. Alexandria and her team regularly review this list, which helps them avoid taking in items with low demand or quality issues.
Example Brands: Lower-quality or low-demand brands that no longer align with her store’s standards.
Level 2: Filler Brands
This category covers “filler” brands, which Alexandria accepts selectively based on current inventory needs. Items from this level are typically lower-priced and taken in only if they are new with tags or fill a specific size gap in her store.
Example Brands: Old Navy (new with tags), Target designer collaborations, and select Gap pieces.
Level 3: Lower-Priced Sellers
Items at this level include mid-range brands that sold steadily but at lower price points. These brands are in demand but do not command high resale prices.
Example Brands: J.Crew, Ann Taylor, Loft, Banana Republic.
Level 4: High-Demand, Mid-Tier Brands
These are solid performers in her store, with a higher price point and good sales turnover. This category includes brands that consistently sell well but are not considered high-end.
Example Brands: Free People, Lululemon, Athleta, Aviator Nation.
Level 5: Designer Brands
This level includes designer brands that have significant resale value and are often highly sought-after by customers. These items are more premium and command higher prices.
Example Brands: Coach, Michael Kors, Kate Spade.
Level 6: Luxury Brands
The highest level of Alexandria’s hierarchy, this category includes true luxury brands. These are the most valuable and sought-after items in her store, including high-end designer and luxury fashion brands. Alexandria creates extra incentives, like special email alerts, to notify customers when these items arrive.
Example Brands: Louis Vuitton, Chanel, Hermès, Cartier, Tiffany & Co.
This method streamlines her intake process, allowing her team to easily assess what to accept based on demand and quality. The clarity of this system not only increases efficiency but, pertinent to our discussion, helps maintain a consistent level of quality for her store’s offerings. This level of inventory organization is only possible using software that can tag and track such levels of specificity.
Tactic: Implement a tiered categorization system for inventory to maintain consistency and quality control. It simplifies training and helps staff make informed decisions quickly.
From the Selling Side
To improve the sell-through rates of inventory, and to match inventory with customer demand, follow these three tactics that Alexandria has used to make her designer and luxury items "fly off the shelves."
2. Leverage Data for Smarter Inventory Decisions
In the early years, Alexandria relied on gut instinct to determine stock and sell-through rates. While beneficial, this tactic was not enough to optimize brand quality and sell-through rates.
"For the first few years, I was doing everything by hand, so my analytics were really only detailed down to categories. Once I switched to software, I started getting deeper insights. I’m now using ConsignCloud’s reporting features to track brand performance and inventory, which allows me to make more factual decisions."
After adopting inventory software like ConsignCloud, she began using data to guide her business decisions. She tracks brand performance to determine what sells best and when to phase out underperforming brands. Using ConsignCloud’s analytics report called Inventory Insights, Alexandria is now able to make data-backed decisions about inventory, making her business more profitable.
While simple, we have identified tracking sell-through rates as one of the most critical business practices a consignment store can adopt. This is the quickest and most accurate method to identify what you should stock your store with.
Tactic: Use analytics tools to track brand performance, helping you identify top sellers and remove underperformers. Software like ConsignCloud offers these insights, enabling businesses to optimize inventory and boost sales.
3. Utilize a Request List for Hyper-Personalized Service
In addition to email marketing, Alexandria developed a "Request List" where customers could specify exactly what they were looking for, down to the brand, size, or style. When matching inventory arrived, her team would notify those customers directly via text or call. This personal touch helped move high-ticket items quickly and cultivated long-term relationships with clients.
"We have a request list for very specific items—like a Louis Vuitton from 1987. We send personalized text messages to those customers when we get something that matches what they're looking for. This morning, I sent over 40 texts to notify people about Louis Vuitton bags that just arrived."
Tactic: Maintain a request list for high-value or niche items. Notifying customers when specific items come in provides a personalized service that can lead to quicker sales and stronger customer loyalty.
4. Create Tailored Email Lists for Targeted Marketing
With a well-organized inventory, Alexandria developed specialized email lists, such as her "Bag Alerts"
"I have an email list for ‘Bag Alerts.’ Every time we get a new luxury bag, I send an email to those customers who are specifically interested. This helps sell a lot of luxury items really quickly—sometimes within minutes of sending out the email."
Over time, she expanded this strategy to other product categories.By directly marketing high-demand items to interested buyers, she keeps customers engaged and increases the likelihood of fast sales.
Tactic: Build segmented email lists for different product categories, allowing you to target interested customers with relevant inventory updates. This personalization increases engagement and drives conversions.
From the Sourcing Side
Having identified high-demand brands and found ways to optimize the sales of those brands, we now move to the tactics Alexandria used on the sourcing side to increase the supply of those specific brands.
5. Build Trust Through Proof of Quick Sales
One of Alexandria’s core strategies for earning consignor trust is showcasing how quickly items, particularly luxury goods, sell. She posts consistently about fast sales of high-end items. This is not only a sales tactic that motivates customers to come in and buy since items are in high demand, but also tells consignors that their luxury items can be sold fast, putting money in their pockets.
"We started posting how quickly things sold. For example, we’d post, ‘This Louis Vuitton bag sold in 24 hours,’ and that would get more consignors to bring their luxury pieces in, knowing we could sell them fast."
Tactic: Share sales success stories on social media to build trust and urgency among both customers and consignors. Showcasing quick sales can inspire action, driving both purchases and consignments.
6. Leverage Social Media Groups
Alexandria set up a private Facebook group for her consignors, where she shares updates on what types of inventory are currently in high demand. “We have a Facebook group just for consignors. We post updates on what items our customers are looking for, so consignors know what will sell well if they bring it in.” This group allows her to communicate directly with consignors and give them insights into customer needs, creating a strong feedback loop that encourages consignors to meet store demand.
Tactic: Adapt your social media strategy based on platform dynamics—short, snappy content for Instagram and more photo-based posts for Facebook. Posting consistently keeps your audience engaged and drives traffic to your store.
7. Simplify the Consigning Process to Attract More Sellers
Alexandria keeps her intake process straightforward and consistent, making it easy for consignors to drop off items without hassle. Her consignment hours are extremely consistent, and her consignment checklist and agreement are easy to find and fill out. Her rate for consignors is higher than software alternatives. This reduces the friction between her and her consignors. She trains her employees to be respectful and courteous when discussing drop-offs with consignors, which helps build a reputation for professionalism and encourages repeat consignors.
“We’re very consistent in how we handle drop-offs. I want people to feel good about bringing items in, so my team is trained to address things in a respectful way if there are any issues.”
Tactic: Make your store's consigning process as easy as possible. When you are the most convenient option, consignors will return to supply you with more inventory again and again.
Now It's Your Turn to Increase Your Sell-Through Rates
These tactics speak for themselves, as they have drastically increased the quality of supply and demand and sell-through rates of Alexandria's store My Girlfriend's Wardrobe. If you’re looking to grow your own consignment store like Alexandria, using the right tools and strategies can make all the difference. ConsignCloud offers analytics, inventory insights, and reporting features that help businesses optimize their inventory, improve sales, and build stronger relationships with consignors and customers alike. Start a two-week free trial with ConsignCloud, or if you already have a ConsignCloud subscription, start exploring options to categorize your inventory using tags and categories.