Spot dead stock early
Dead stock rarely appears overnight. It starts as a slow size, a colour nobody picked or a festive line that missed its window. Set a simple rule, such as no sales in 90 days, and check it every month. List each slow item with its units, its cost and how long it has sat. Rank them by the cash tied up, not the number of pieces. Note the shelf space each one takes, too. A shelf full of slow stock is a shelf your bestsellers cannot use. The earlier you act, the more of the price you keep.
Why deep discounts hurt
A big clearance sale empties shelves fast, but it teaches buyers to wait for the next one. It also tells new visitors your full prices are not real. So keep public discounts as the last step, not the first. Use quieter ways to move stock that protect your price. And if you must discount, do it in a closed channel, such as an email to past buyers, rather than on your homepage.
Ways to clear stock, gentlest first
| Method | How it works | Best for |
|---|---|---|
| Bundles | Pair a slow item with a bestseller at one price | Add-ons, accessories, spare colours |
| Gift with purchase | Add the item free above an order value | Low-cost items that feel valuable |
| Loyalty rewards | Offer it as a points reward | Items your regular buyers already like |
| Private sale | An email-only offer to past buyers | Seasonal lines |
| Wholesale or B2B | Sell the lot to a retailer or reseller | Large quantities of one SKU |
| Donation | Give it to a charity or NGO | Stock you cannot sell at all |
Bundles and gifts with purchase
Bundles move slow stock on the back of your bestsellers. Pair a slow scarf with a popular kurta, or a slow candle with your best diffuser, at one price. The buyer sees value, and your full prices stay intact. A gift with purchase works the same way. Add the slow item free above an order value, which also lifts your average order. On the GST side, CBIC's Circular 92/11/2019-GST says a buy-one-get-one offer is two goods sold for one price. Input tax credit stays available for goods supplied as part of such offers.
Sell in bulk to other businesses
Retailers, resellers and corporate gifting buyers often want a lot at a fair price. Offer your slow stock as a single lot, away from your own store, so your buyers never see the lower price. Local boutiques in Tier-2 and Tier-3 cities can be good buyers for fashion and home goods. Ask for payment upfront, or part upfront. Then issue a proper GST invoice with the buyer's GSTIN. Take the lot out of your store's stock count as soon as you agree the deal, so you never sell units already promised.
Donation and write-offs under GST
Some stock will never sell. Giving it away helps someone and frees your shelf, and writing off damaged goods cleans up your books. Both have a GST cost. Section 17(5)(h) of the CGST Act blocks input tax credit on goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples. CBIC's circular confirms that credit is not available for gifts given without payment. So if you claimed credit when you bought the stock, ask your accountant about reversing it. The CGST Rules also expect your stock accounts to record goods written off or given away as gifts or free samples.
Stop it happening again
Clearing stock fixes today. Buying better fixes tomorrow. Order smaller first batches of new designs, then reorder what sells. Watch sizes and colours one by one, because a bestseller often has one slow variant. On a paid plan, The Storemate's inventory reports include a dead-stock view that counts products with no sales in the last 90 days. Check it each month and act on the list early. Your clearance sales will get smaller.