How to get rid of dead stock

What counts as dead stock

Dead stock is inventory that has not sold in a long stretch, usually 90 to 180 days depending on your category. It is different from slow stock that still moves occasionally. Check your sales history per variant, not just per product, because one color or size can be dead while others in the same listing sell fine.

Stop the bleeding first

Before you discount anything, make sure you are not still ordering more of it. Pull it out of any standing reorder plans and set its target stock to zero or near zero. There is no point clearing old stock while new stock of the same SKU is on its way.

Move it out

Markdowns work best when they step down over time: a modest discount first, then deeper if it still does not sell. Bundling a dead SKU with a strong seller at a small combined discount can clear it without you taking a loss on your best products. For stock that will not move even discounted, consider a clearance channel, an outlet sale, or selling it in bulk to a liquidator. Returning stock to the supplier is worth asking about if you bought on terms that allow it.

Prevent the next batch

Dead stock usually comes from ordering too much, too early, or for a product that was a one-off trend. Tighten your safety days and order quantities for slow movers, and treat new or seasonal products as a separate case with smaller initial orders.

Step by step

1. Run a report of units sold per variant over the last 90 to 180 days.
2. Flag any SKU with zero or near-zero sales in that window as dead stock.
3. Remove dead SKUs from any active reorder or forecast settings so you stop buying more.
4. Apply a first-round discount, 20 to 30 percent off, and watch for 2 to 3 weeks.
5. If it still does not move, bundle it with a top seller or push it to a clearance channel.
6. For anything left after that, sell in bulk to a liquidator or ask your supplier about returns.
7. Review why it went dead and adjust order quantities for similar products going forward.

Worked example

A store has 240 units of a phone case style that has not sold in 150 days, bought at $4 each, so $960 is tied up. They cut it from reorder plans, run a 25 percent off sale and sell 90 units over three weeks. The remaining 150 units get bundled with a best-selling phone case at a $2 combined discount, which clears another 100 units in two weeks. The last 50 go to a liquidator at $1.50 each, recovering $75. Total recovered: roughly $590 of the original $960, plus shelf space back.

How SteadyShelf helps

SteadyShelf will not run your discounts, create bundles, or talk to liquidators, that part is manual. What it does help with is the first step: its sales forecast per variant makes it easy to see which SKUs have gone cold, and you can zero out their reorder quantities so you stop adding to the pile while you clear it.

$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related guides

• How to handle a short shipment from a supplier
• How to handle a supplier price increase
• How to handle a supplier that ships late
• How to free up cash tied up in inventory

All inventory how-to guides · Inventory glossary

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