Dead stock is inventory that hasn't sold in a defined window — commonly 90 days for general retail — and is unlikely to without intervention. Spot it with a sales-window report, clear it early with bundles, clearance pricing, supplier returns, or a deliberate write-off, and prevent it by reordering from sell-through data instead of habit.
Dead stock isn't just unsold stock — it's stock that's actively costing you money to hold. It ties up cash, takes shelf space from items that sell, and usually loses value the longer it sits.
How to spot it
The simplest useful rule: flag any item with zero or near-zero sales over a defined window. The right window depends on the category:
| Category | Typical "no sale" window | Why |
|---|---|---|
| Perishables, FMCG | 30–60 days | Expiry dates arrive before a longer window would |
| General retail | 90 days | A common default that avoids flagging normal slow sellers |
| Seasonal goods | One full season | Off-season silence is expected |
| Spare parts, slow industrial items | 6–12 months | Low but real demand; check before clearing |
Too short and you'll flag normal slow sellers; too long and genuinely dead stock sits for months before anyone notices. Review the list monthly, alongside items approaching expiry.
What it really costs
Holding inventory commonly costs 15–30% of its value per year once you count capital, space, handling, and risk (see what holding cost means for your margins). Example: ₹60,000 of dead stock at a 25% holding cost costs about ₹15,000 a year to keep — before any markdown you eventually take to clear it.
Six ways to clear it
| Option | Best for | Trade-off |
|---|---|---|
| Bundle with a fast seller | Complementary items | Small margin hit on the bundle |
| Clearance promotion | Items with real but low demand | Sets a lower price expectation if overused |
| Return to supplier | Recently bought items, flexible terms | Restocking fees; only if your terms allow |
| Sell to a liquidator or another shop | Larger quantities | Low recovery per unit, but cash now |
| Donate | Usable goods with no resale route | No cash recovery; may have tax treatment to check |
| Write off | Expired, damaged, or obsolete stock | Records the loss honestly; frees space immediately |
Whatever you choose, make it a decision with a date, not a hope that the item will eventually sell.
Preventing it next time
Dead stock is usually a symptom of an ordering decision made without sell-through data — reordering a slow item out of habit, over-ordering for a promotion that didn't perform, or buying a supplier's minimum quantity for an untested product. Three habits prevent most of it:
- Set per-item reorder points from real sales, not a flat number.
- Test new products in small quantities before committing to a full order.
- Review C and Z items each quarter and stop reordering the ones that don't move.
StashBill's inventory intelligence flags dead stock automatically against a sales window you set, instead of relying on someone noticing a shelf hasn't moved.
Frequently asked
What's a reasonable time window to call something dead stock?
90 days with zero or near-zero sales is a common default for general retail; shorten it for perishables and lengthen it for seasonal or slow-turning categories.
Is dead stock the same as excess stock?
No — excess stock is more than you need of something that still sells; dead stock isn't selling at all. Excess stock left too long often becomes dead stock.
Should I discount dead stock or write it off?
Discount or bundle while the item still has resale value; write it off once it's expired, damaged, or obsolete. Clearing earlier almost always recovers more than clearing later.