Dead stock on Shopify: how to find it, clear it and stop buying it

1. Find it

• In Shopify, run the percent of inventory sold or sell-through report for the last 90 days and sort lowest first.
• Cross-check with average inventory sold per day. Divide units on hand by daily sales to get months of stock. Anything over 6 months is a candidate.
• Flag products with zero sales in 90 days that still have stock.

2. Work out what it's costing you

Every unit sitting on the shelf costs roughly 20% to 30% of its value a year to hold. Run your numbers through the carrying cost calculator. That's the budget you can spend on discounts and still come out ahead.

3. Clear it, in this order

1. Bundle it with a best-seller as a gift or add-on.
2. Discount it to your email list or as a "last chance" collection.
3. Sell wholesale to another retailer, or list it on a marketplace.
4. Liquidate to a jobber or liquidation marketplace.
5. Donate if storing it costs more than it will ever return.

4. Stop buying it

Dead stock is almost always a reorder decision made on gut feel or on last year's numbers. Reorder from recent sales velocity, size each order to cover the lead time plus a set number of days, and let products that stop selling drop off the reorder list. SteadyShelf shows days of stock for every product and only suggests reorders when the math says so.

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

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