How to sell excess inventory: which route fits which stock?
Excess inventory has several possible routes: hold, mark down in your own channel, bundle, sell to a screened buyer, work with an outlet, or prepare for reuse. Compare the net return, time, brand risk and effort per article. There is no guaranteed recovery percentage; recycling is subject to the applicable rules.
The six routes side by side
The time ranges below are planning examples, not measured platform lead times or guarantees. Calculate returns from your own prices, actual bids, fees and handling costs.
| Route | Net return | Lead time | Brand risk | Effort | When it fits |
|---|---|---|---|---|---|
| Hold | Expected selling price minus carrying costs | A season or more | Low | Low | Basics without seasonal features, small quantities, full size run |
| Mark down in your own channel | Your net price after discount and selling costs | 4 to 12 weeks | Medium: your customers learn to wait for the discount | Medium | Articles that still sell, only slower; sizes still complete |
| Bundle or repack | Your net bundle price minus handling | 4 to 10 weeks | Low | High | Odd sizes, sets, gifting and seasonal moments |
| Sell as a lot to screened buyers | The bid you accept, minus agreed costs | 2 to 4 weeks | Low when you set channel and country; high with a liquidator who may do anything | Low | Broken size runs, old seasons, volume, anything that stopped moving in your own channel |
| Outlet or flash sale partner | Contract terms minus commissions and costs | 8 to 16 weeks, paid later | Medium to high: your brand and price are visible online | Medium | Larger brands with an outlet strategy of their own |
| Donate or recycle | No assumed sale proceeds; check costs and tax treatment | 1 to 2 weeks | Low | Low | Condition B and C, no demand left, closing the file for ESPR |
Hold
- Net return
- Expected selling price minus carrying costs
- Lead time
- A season or more
- Brand risk
- Low
- Effort
- Low
- When it fits
- Basics without seasonal features, small quantities, full size run
Mark down in your own channel
- Net return
- Your net price after discount and selling costs
- Lead time
- 4 to 12 weeks
- Brand risk
- Medium: your customers learn to wait for the discount
- Effort
- Medium
- When it fits
- Articles that still sell, only slower; sizes still complete
Bundle or repack
- Net return
- Your net bundle price minus handling
- Lead time
- 4 to 10 weeks
- Brand risk
- Low
- Effort
- High
- When it fits
- Odd sizes, sets, gifting and seasonal moments
Sell as a lot to screened buyers
- Net return
- The bid you accept, minus agreed costs
- Lead time
- 2 to 4 weeks
- Brand risk
- Low when you set channel and country; high with a liquidator who may do anything
- Effort
- Low
- When it fits
- Broken size runs, old seasons, volume, anything that stopped moving in your own channel
Outlet or flash sale partner
- Net return
- Contract terms minus commissions and costs
- Lead time
- 8 to 16 weeks, paid later
- Brand risk
- Medium to high: your brand and price are visible online
- Effort
- Medium
- When it fits
- Larger brands with an outlet strategy of their own
Donate or recycle
- Net return
- No assumed sale proceeds; check costs and tax treatment
- Lead time
- 1 to 2 weeks
- Brand risk
- Low
- Effort
- Low
- When it fits
- Condition B and C, no demand left, closing the file for ESPR
Route by route
Hold. The most expensive option if you do nothing, the cheapest if the article really fits next year's collection. Always count the yearly cost and be honest about the odds that an AW25 jacket still works in AW26. Holding is a decision, not a postponement.
Mark down in your own channel. Returns the most per unit, but only while there is demand. The risk is what it does to the rest of your range: every sale teaches your customer that waiting pays, and a sale that runs too long pulls down the price point of the new collection. Rule of thumb: if an article has not moved after four weeks of discount, more discount does not sell the article, it only sells your margin.
Bundle. Two odd sizes or colours that do not sell on their own sometimes sell as a set. Works for underwear, socks, basics and gifting moments. It costs your team's time and often new packaging; count that in.
Sell as a lot. The route for everything that stopped moving in your own channel: broken size runs, old seasons, volume. This is where the gap between done well and done badly is largest. Done badly: you call a liquidator you know, they name one price, and you never learn where your articles end up. Done well: several screened buyers bid on the same lot at the same time, you decide beforehand which channels, buyer types and countries may see that the lot exists, and your name stays hidden until you accept a bid.
Outlet or flash sale partner. Players such as Otrium, Secret Sales or a physical outlet take stock on consignment: you get paid when it sells, and your brand sits online at a discount. For brands with their own outlet strategy that is fine; for a brand protecting its price point it is the most visible route there is.
Donate or recycle. For large companies the ESPR ban on destroying unsold apparel, accessories and footwear applies from 19 July 2026; for medium-sized companies from 19 July 2030. Recycling also counts as destruction under this regulation. Prioritise resale, donation and preparation for reuse. Recycling requires an applicable, documented derogation when the ban applies.
How to choose per article
Three questions per article, in this order:
- 01Does it still sell in my own channel, being honest about the pace?Yesmark down or bundle.Nogo to 2.
- 02Is it condition A and is there still demand for this type of product among other sellers?Yessell as a lot, with channel restrictions that fit your brand.Nogo to 3.
- 03Is it condition B or C, or a category no buyer wants?ThenPrioritise donation or preparation for reuse; check legal eligibility before recycling and record the reason.
Unworn's analysis makes exactly this call per article, with your own sales velocity, cost price and storage cost in it, and sets the expected return of each route side by side, ranked on return per week of capital tied up.
Frequently asked questions
Excess inventory is more of an article than you can sell at a normal price in a normal period; it may still be selling. Dead stock is what is left once selling has stopped: end of season, broken sizes, discontinued styles.
There is no verified universal percentage. Compare actual bids for the same goods and conditions, then deduct the applicable costs. Brand, category, condition, age and the available buyers affect the result. A sample bid spread does not establish a market benchmark.
Yes. On a private bidding platform buyers see the lot (category, quantities, condition, photos) but not your brand name, until you accept a bid.
For large companies the ESPR ban on destroying unsold apparel, accessories and footwear applies from 19 July 2026; for medium-sized companies from 19 July 2030. Recycling also counts as destruction under this regulation. Prioritise resale, donation and preparation for reuse. Recycling requires an applicable, documented derogation when the ban applies.
Usually you do not know, and that is the problem. Without agreements your article can resurface on a marketplace in your home market, label in, at a price your own customers can see.
- 01Regulation (EU) 2024/1781: ecodesign and unsold products · European Union