What is dead stock?

Slow-moving stock still sells, just slowly. Dead stock does not sell at all, or only after deep discounts. Where you draw the line depends on the product. Six months without a sale is dead for a fashion accessory, but is only a slow week for a once-a-year seasonal item. Decide a rule for your shop, such as 'no sales in 90 days', and apply it the same way every time.

A phone shop has 18 cases for an older phone model, bought at $2.50 each. None has sold in six months, and the supplier will not take them back. The shop has $45 tied up (18 x $2.50).

That is not a large sum, but it is also shelf space. Here are the options in order of preference:

1. Bundle: give a case free with a screen protector sale.
2. Discount: price at $1.50 and recover $27 rather than nothing.
3. Sell together as a lot to another seller for whatever they will pay.
4. Write it off: record the loss and clear the space.

Selling at $1.50 is a loss of $1.00 per case, or $18 in total. Keeping them forever costs more, because the space and attention have a price too.

• Buy small first. Order a few units of anything new and reorder only after it sells.
• Review slow sellers monthly. The earlier you act, the less discount you need.
• Watch fashion-led lines. Cases, trends and seasonal goods lose value fast.
• Do not bury it. Stock in the back room is stock you forget.

The full method is in the guide on slow-moving and dead stock.

The slow movers report in Shopkeepa lists the products selling least, so dead stock shows up in a list rather than being hidden in a back room. When you clear or discard stock, record it as a stock movement so your counts stay true.