July Is the Best Time for Inventory Cleanup

Mid-year is the calm before the Q4 storm. Sales often slow in July, making it the perfect time to reset your inventory strategy. Sellers often overlook this window, but those who act now can enter the holiday rush leaner, smarter, and more profitably.

Cleaning out deadstock now can improve your inventory turn ratio, lower storage fees, and free up cash to invest in bestsellers.

The True Cost of Deadstock

Dead inventory chips away at your efficiency and margins. Left unchecked, it can cost you:

• Storage fees (especially long-term or aged inventory penalties)
• Lost opportunity cost (cash tied up in unsellable goods)
• Brand perception damage (cluttered store, unclear value proposition)
• Reduced fulfillment efficiency (excess SKUs slow down pick-pack-ship)

To win the long game, you need to treat deadstock like a liability. Next? Turn it into leverage.

1. Run a “Christmas in July” Flash Sale

Add a festive spin to your clearance efforts. A limited-time, holiday-themed sale creates urgency and energy, perfect for reactivating email lists or sparking engagement on social. Countdown timers, holiday-style graphics, and fun  “Santa’s summer sale” language can push conversions even further.

2. Create Limited-Edition Bundles

Bundle older inventory with popular ones and label them as:

• “Legacy Pack”
• “Throwback Box”
• “Collector’s Combo”

Use scarcity psychology, make it clear that these bundles won’t return. If it’s a final run, it may feel special.

3. Sell Through B2B, Not Just B2C Channels

Retail isn’t the only option. Wholesalers, dollar stores, and resellers are often eager to scoop up overstock, especially when it’s in bulk. Platforms like Faire, Abound, or even targeted outreach on LinkedIn can help you offload SKUs quickly.

4. Add Slow Sellers to Subscription or Loyalty Boxes

Have a subscription or loyalty program? Sweeten the first box with a surprise product from your slow-moving stock. It feels like a gift, costs nothing extra, and clears warehouse space.

5. Rebrand and Repackage

Sometimes a product isn’t dead, it’s just misunderstood. Try:

• New packaging
• Fresh photography
• Positioning for a different audience or season

 “Winter hand cream” could become a “Summer hydration balm” with a little creative direction.

6. Offer “Buy More Save More” Threshold Deals

Encourage larger cart sizes by offering tiered discounts. Offer deals like buy two, save 10%; buy three, save 20%; buy five or more, save 30%. This works really well for consumables or items with multiple variations.

7. Let Customers Choose Their Freebie

Offer customers a free item of their choice (from your deadstock pool) with a qualifying purchase. This adds perceived value and gives slow movers one last spotlight.