Every distributor carries some stock that is not moving. A few slow sizes, an older season, a category that underperformed. Left alone, it ties up cash and warehouse space and loses value every month. Managed well, excess inventory becomes one of the most reliable sources of margin in the business.
This playbook covers how distributors and wholesalers can spot, price and move excess stock without damaging brand relationships.
1. Define what "excess" means for you
Excess is not just old stock. A practical definition combines three signals:
- Age: units held longer than your normal sell-through window, for example 120 days.
- Cover: more weeks of stock than recent sales justify.
- Fragmentation: broken size runs that wholesale accounts will not take.
Tag these units in your system so you can report on them every month.
2. Segment before you sell
Not all excess is equal. Split it into groups:
- Near full price: recent seasons and core styles that simply need more reach.
- Controlled discount: last season, saleable with a capped discount off MSRP.
- Deep clearance: aged or damaged-packaging stock.
Each group deserves a different channel and price. Treating them all as clearance is the most common and most expensive mistake.
3. Set a net price floor for every SKU
Decide the lowest net price you will accept per SKU and never sell below it. A clear floor protects your margin and your brand partners, and it lets a distribution partner price confidently in each market.
4. Widen distribution instead of cutting price
Most excess is not unwanted. It is simply in the wrong place. A size that sits in one market may be in demand in another. Listing single units across many approved online retailers usually realises far more than selling the lot in bulk.
This is what Stork does for suppliers: one integration lists your catalog across approved online retailers in 10+ markets, AI matches each SKU to where demand is strongest, and nothing sells below your net price.
5. Protect brand relationships
- Respect each brand's channel and regional restrictions.
- Avoid bulk lots that end up in channels you cannot see.
- Keep a clear record of where units sold.
6. Review monthly
Track sell-through by segment, price realised against MSRP and days to sell. Use what you learn to buy smarter next season.
FAQ
What is a healthy level of excess inventory?
It varies by category, but most distributors aim to keep aged stock to a small share of total units and clear it within one season.
Should I sell excess to jobbers?
Only for genuine deep clearance. For near-full-price and last-season stock, wider distribution through approved retailers usually returns more.
How fast can I start?
Most Stork suppliers go live within 7 to 14 days, starting with one category. Apply as a supplier.
