Craft Store Inventory Turnover: Stop Tying Up Cash in Dead Stock

Craft store shelves fill up quickly, and not everything sells the way you planned. Whether it’s lingering Valentine’s ribbon in July, 200 fidget spinner kits that never made it past their 2017 peak, or dusty rose yarn sitting untouched while hot pink sells out, each slow mover ties up cash and takes up space you could use for products customers want now.

This problem isn’t limited to a few duds. Craft retailers juggle thousands of stock keeping units (SKUs), endless color and size variations, and trends that change faster than a TikTok craze. Throw project-based buying into the mix, and suddenly you’ve got mismatched leftovers — the beads sell out, but the clasps linger.

To stay profitable, you need to know how each SKU performs. For that, you need automated point of sale (POS) tools. POS software makes it easy to track turn rates, tweak orders, and roll out discounts that keep products moving.

In this blog, we’ll explore common craft store inventory turnover pitfalls, how to handle them, and POS strategies that protect your margins. 

Let’s dive in.

When Seasonal Inventory Misses Its Window

Seasonal merchandise fuels excitement in craft retail, but its shelf life is short. Valentine’s Day card kits fly off the shelves in January — by midsummer, they’re collecting dust in the storeroom. Holiday decor, summer camp crafts, and back-to-school items follow the same short-lived cycle.

To reduce overstock, try these tips: 

• Plan inventory closer to demand: Use last year’s sales numbers to guide this year’s orders — if you sold 60 Halloween kits, don’t order 120.
• Set firm clearance deadlines: Mark down seasonal products the week after the holiday — 30% off right after Valentine’s Day, 50% off two weeks later.
• Create off-season bundles: Package leftover Valentine’s ribbons or heart-shaped embellishments into general “love” or wedding-themed kits.
• Rotate displays: Move holiday items up front early and phase them out quickly to signal urgency.

Pull seasonal reports from your POS to gauge project inventory needs and place orders that match customer buying patterns.

How To Handle Trend Casualties and Overstock Nightmares

Craft fads move quickly, sometimes outpacing fashion. Yesterday’s hot items, like slime kits, tie-dye kits, or diamond painting sets, can leave you with hundreds of units that no one wants today.

Make craft store inventory turnover work for you:

• Monitor sales velocity: Check weekly POS data to see when sales start sliding. For example, if resin coaster kits fall from 50 units a week to 15, pause reorders.
• Launch promotions early: Roll out buy one, get one (BOGO) or bundle deals as soon as that slowdown shows up, like pairing punch-needle kits with embroidery hoops.
• Link with core items at checkout: Package poor performers with staples. You might add leftover macramé beads to top-selling cord displays.
• Slash prices quickly: Drop prices by 20–30% when sales start leveling off — it’s better than losing profit to clearance later.

Real-time insights warn you as trends cool, giving you a head start on cutting losses and clearing space for what sells now.

How Color and Size Variations Shrink Your Margins

Color and size options bring shoppers in, but they also multiply SKUs to a level that’s hard to manage. Fast sellers like white canvas panels and standard yarn colors move quickly, while niche shades or oversized scrapbooking pages sit untouched.

 To organize them:

• Use ABC analysis: Group colors and sizes by their sales value — A items are top earners, B are steady movers, and C are underperformers. Order heavily in A, moderately in B, and lightly in C.
• Refine purchasing with reports and alerts: Set alerts for when specific colors or sizes stop selling, and cut back on future orders before excess builds up.
• Limit variety strategically: Use historical sales data to identify which colors and sizes lose momentum and adjust orders to focus on consistent sellers and trends.
• Showcase in samples: Display finished projects to feature hard-to-sell SKUs — like a scarf knit in pale lavender yarn — so shoppers can see the potential.

Backed by the right POS software, these craft store inventory turnover strategies provide ordering recommendations based on turn rates, so you can make better purchasing decisions.

What To Do With Leftover Supplies From Project Kits

When you build kits, the bulk parts you buy rarely match what each kit requires. For example, if a jewelry kit needs 12 clasps but suppliers only sell them in packs of 20, you’re left with extras. Those leftover pieces fill bins and tie up cash.

Here are some ways to address this craft store inventory turnover challenge:

• Repackage into clearance packs: Sell leftover items as grab bags or discounted assortments, like bundles of yarn scraps or mismatched buttons.
• Offer advanced workshops: Host design classes featuring extras, such as fabric-painting sessions that use surplus stencils or dyes.
• Cross-promote components: Place spare soap molds or candle jars near fragrance oils so customers associate them with new projects.
• Explore alternative suppliers: Look for vendors that offer flexible pack sizes or special ordering options, and select those that match your kit quantities to minimize leftover parts.

These tactics turn surplus kit supplies into usable stock. 

Master Craft Store Inventory Turnover With Rain POS 

Craft retailers manage thousands of SKUs across yarn, beads, fabrics, and seasonal kits. That variety requires a POS system built to handle the unique challenges of hobby stores.

Rain POS is made for this challenge. SKU-level reports show exactly which products sell and which don’t, while alerts flag slow-moving items. Seasonal tracking helps you plan markdowns at the right time, and purchase order tools recommend quantities based on actual sales data.

Free up cash for products your customers actually want. Try our Build and Price tool today to see how Rain POS improves craft store inventory turnover and protects your bottom line.