Excess and Dead Stock Clearance in India: 7 Ways

Excess stock costs money every month it sits: interest on the cash locked in it, storage, and a falling resale value. Clearing it is a maths problem before it is a selling problem. First work out what waiting costs, then choose the way to clear that fits the stock.

Short answer

Work out your monthly holding cost, decide the lowest price you will accept for the whole lot, and use two or three of these routes at once: sell the whole lot to one bulk buyer, split it into graded lots, offer it to your own customers, sell to a liquidator, list it on a stock board, bundle it with fast-moving items, or sell unsellable material as scrap.

Step 1: what is the stock costing you

Here is an example, using round numbers. Use your own. Stock worth Rs 10 lakh at cost, money costing 12 percent a year, which is Rs 10,000 a month, plus Rs 5,000 a month for storage. That is Rs 15,000 a month. After six months you have spent Rs 90,000, which is 9 percent of the stock value, and the goods are older. A 10 percent discount that sells the lot today costs Rs 1,00,000, about the same as holding it for seven months. So a discount is often the cheaper choice if the stock is not moving.

The 7 ways to clear stock

Sell the whole lot to one bulk buyer: fastest, one invoice, one collection.
Split into graded or size lots: better price for the good part, the rest goes cheaper.
Offer it to your own distributors and customers with a clear clearance scheme.
Sell to a liquidator or bulk trader: quick and certain, lowest price.
List it on a stock board such as ClearLot, so bulk buyers who are already looking can find it.
Bundle slow items with fast sellers in your regular orders.
Sell what cannot be sold as a product as scrap, by weight, to an authorised buyer.

Which route for which stock

Good condition and a known brand: wholesalers, retailers, resellers and your own customers
Old season or discontinued: outlet stores, resellers and exporters
Customer returns and open box: graded lots to resellers
Parts, raw material and machinery: factories, workshops and project companies
Damaged or obsolete material: recyclers and scrap dealers

Set a price and a date

Decide your lowest acceptable price for the whole lot and a date after which you will lower it or split the lot. Stock that is priced well and offered to several buyers at once moves in days. Stock that waits for the perfect price usually ends up cheaper later.

Mistakes to avoid

Waiting for the market to recover for a year
Hiding defects or changing dates, which ends in returns and disputes
Selling piece by piece when one bulk buyer would take everything
Releasing goods before the money has reached your business account
Calling fresh stock "dead stock". Buyers can tell, and it costs you trust

How ClearLot helps

Listing excess or dead stock on ClearLot is free and puts it in front of bulk buyers by category. ClearLot is a free-to-list stock board in India. Our team checks every lot before it goes on the board, and the seller's name, business name and phone number are not shown to visitors. When a buyer is interested, we speak to them first and then connect the two. ClearLot does not buy, hold or transport stock and is not a party to the deal: price, payment and dispatch are agreed between seller and buyer.

Frequently asked questions

How do I clear excess stock quickly in India?

Work out what holding costs, set the lowest price you will accept for the whole lot, and offer it to several buyers at once: a bulk buyer, graded lots to resellers, your own customers, a liquidator and a stock board such as ClearLot.

Is it better to sell excess stock at a discount or keep it?

If the stock is not moving, a discount is often cheaper than holding it, because interest, storage and falling value add up every month. Work out your own monthly cost and compare it with the discount.

Who buys dead and unsold stock in India?

Wholesalers, discount retailers, resellers, liquidators, exporters, factories (for parts and material) and scrap dealers (for material that cannot be sold as a product).

Can I list excess stock for free?

Yes. Listing on ClearLot is free. Your name, business name and phone number are not shown on the website.

Read next: How to sell dead stock in India. Or see what ClearLot is.

Excess and dead stock clearance in India: 7 ways to clear it