What is dead stock?
Dead stock is product that has not been sold, or has not left the warehouse at all, for a set period — in general retail usually 6 months, in slow-moving businesses 12 months. Although it isn't selling, it keeps cash equal to its purchase cost tied up on the shelf, takes up warehouse space and loses value over time. It is measured by the dead stock ratio: dead stock value ÷ total stock value × 100; if 52,000 ₺ of a 400,000 ₺ inventory has been idle for 6 months, the ratio is 13%.
Dead stock mostly doesn't come from a single wrong decision but builds up from small, unnoticed over-purchases. That is why the first job is to make it visible: which product, for how many months, how much money.
Dead stock, slow-moving stock and excess stock
The three are often confused, but their solutions differ:
| Type of stock | Situation | Solution |
|---|---|---|
| Excess stock | The product sells, but you have more on hand than you need | Shrink the next order and the stock runs down on its own |
| Slow-moving stock | The product sells, but less often than expected | Pull the order quantity and reorder level down |
| Dead stock | Not sold at all during the threshold period | Ordering has already stopped; the goods on the shelf have to be cleared |
The distinction matters because the “wait, it will sell” approach that works for excess stock doesn't work for dead stock. Excess stock runs down over time; dead stock only gets older.
How to identify dead stock: five steps
1. Set the threshold by product type
Dead stock has no single time limit; the threshold is set by the product's normal turnover speed. In general retail and stationery, 6 months, and in slow-moving businesses such as spare parts and furniture, 12 months with no movement are commonly used limits. For products with an expiry date the period is much shorter: a food or cosmetic product that has spent half its shelf life idle is already a dead stock candidate. Write the threshold down once and use the same one at every check; lists made with a threshold that changes every month can't be compared.
2. Pull the last movement date of each product
The measure is when the product last left the warehouse — a sale, issue to production or a transfer. The receipt date doesn't count: adding new goods to the shelf doesn't show that the old goods have sold. If you keep records in Excel, take the latest issue date for each product code from the movement list; if you keep them in software, pull the sales report for the period you chose and set aside the products that don't appear at all in the list. A product that hasn't sold even once in the period is the list you are looking for.
3. Sort by cost value, not by quantity
Sort the list by quantity on hand × purchase cost. 300 idle screws and 3 idle generators are not the same problem; clearing starts with the item that ties up the most money. In most warehouses, the first few items on the list hold most of the dead stock value.
4. Calculate the dead stock ratio
Formula: dead stock value ÷ total stock value × 100. For a business with 400,000 ₺ total stock, of which 52,000 ₺ has seen no movement for 6 months, the dead stock ratio is 13%. On its own it is neither “good” nor “bad”; its meaning emerges at the next check. Calculate the ratio every quarter with the same threshold and record it: if it falls, the clearing is working; if it rises, the problem is in purchasing.
5. Write a decision for each item
Next to every product on the list, write one of four decisions: sell at a discount, bundle it with a fast-moving product, return it to the supplier, or dispose of it. “Let's wait” is not a decision — dead stock that waits loses a bit more value every month and keeps taking up shelf space. An item with no decision written beside it will show up again on the next list unchanged.
How to clear dead stock
1. Discount sale. The fastest way. Don't hesitate to cut the price below purchase cost: the value of goods sitting on the shelf today is not the purchase price but the price at which they could be bought today. Selling below cost looks like a loss on paper but frees up the tied-up cash.
2. Bundle sale. Sell the idle product together with a best seller. The customer buys the second item for a small extra payment on top of the one they were already buying; the dead stock borrows the sales speed of the fast-moving product.
3. Return or exchange with the supplier. If the purchase had a return clause, use it; if not, ask for an exchange against a new order. For unopened goods with intact packaging this often costs less than a discount.
4. Wholesale or outlet sale. Hand over the items you can't clear one by one in bulk, at a low price, to another seller. Shelf space is freed the same day too.
5. Disposal. The last option for goods that are expired, damaged or obsolete. Donation, scrapping or destruction must be documented and written off the records together with your accountant.
Why does dead stock occur?
Ordering by carton size. The supplier sells cartons of 48 and you sell 3 units a month: each order means a year of stock. Order quantities according to your own sales speed; the calculation of the threshold is in the what is a reorder level guide.
A big batch of an untested product. A new product is bought in a full batch before its sales have been seen. If it doesn't catch on, the entire batch turns into dead stock.
Wrong records. A product that was sold but not recorded looks idle in the system. See every item on the list on the shelf once; if the system says 40 units and there are 12 on the shelf, the problem is not dead stock but the records — the how to do a warehouse stocktake guide explains the steps to find the difference.
Two records for the same product. If the same goods were opened under two different codes, sales land on one and stock on the other; the second card always looks dead. We explained the product code system in the warehouse inventory tracking guide.
Pulling the list in the software
To find the last issue date of each product in Excel, all movements must be kept in a single list. If you work with software, that list builds up on its own: in Ofisx, open the “Best-selling products” report in the Reports section for the last 6 or 12 months and compare it with your product list: the products at the very bottom of the list and those you can't find on it are dead stock candidates. Verify each candidate from the product's movement history — the last issue date is shown there. You can export the product list to Excel and sort the candidates by cost value. The program has no separate “dead stock report” screen; the list comes from comparing these sources. For working in the warehouse from your phone, the mobile and web versions share the same data.
After clearing out dead stock, recalculate your inventory turnover; once the inactive items are gone, you can see how fast the rest of the warehouse really turns over.
Frequently asked questions
What is the difference between dead stock and slow-moving stock?
Slow-moving stock does sell, just less often than expected; dead stock has not sold at all during the period you set. Slow-moving items are fixed by reducing their order quantity and reorder level. With dead stock, ordering has already stopped; the problem is the goods still on the shelf, and they need to be sold off.
What does dead stock cost a business?
Four things: money tied up on the shelf (money that could have bought fast-moving products), the warehouse space it takes up, goods ageing or passing their expiry date over time, and the labor spent counting it. The first is the biggest and the least visible: dead stock still looks like an asset in the books, but until it turns into cash it brings the business no return.
After how long can dead stock be written off?
There is no single time limit, and the decision depends on tax regulations. Ask your accountant how goods that have lost value or been destroyed can be removed from the books, and what documents and records are required. This guide covers identifying and clearing dead stock; the accounting entry is a separate matter.
How does dead stock affect inventory turnover?
It pulls it down. Dead stock sits inside the average inventory value but adds nothing to the cost of goods sold, so it inflates the denominator of the turnover formula. Even if the rest of the warehouse turns over well, your overall inventory turnover comes out low. Recalculating turnover after clearing out dead stock shows the real picture.
Can I return dead stock to the supplier?
Yes, if you agreed on return or exchange terms when you bought it; some suppliers will also swap unsold goods for a new order. If there are no terms, it is a matter of negotiation. That is why, when buying a new product for the first time, starting with a small batch and agreeing on return terms up front is the cheapest safeguard against dead stock.
How do you prevent dead stock?
With three habits: test a new product with a small batch, set order quantities by your own sales rate rather than the supplier's case size, and produce the dead stock list every quarter using the same threshold. Producing the list regularly works even on its own, because an inactive product gets noticed within a few months, not after two years.
Last updated: 2026-09-21
Sales report and movement history in the app
Every sale and outbound movement is recorded; you can read from the report which products are not turning over.
Spot inactive products within a few months, not two years later
Open a free account and import your Excel list; as sales are recorded, the products that aren't turning over show up.