How to sell excess stock in India without hurting your brand's price
Seven steps for brands with stock that will not move: value it, set a floor, fence it off from your own channels, and sell it one level up.
Every brand ends up with stock its regular channels will not take: a festive pack after the festival, an overrun from the factory, a SKU that never found its customers. The quick fix is a deep discount through your own distributors or a marketplace sale. That moves the units, but it puts a cut price next to your full-price stock, and your retailers notice.
There is a better order of operations. These seven steps are how we think about it at Lotvine, and they work whether or not you use us.
1. Work out what the stock costs you to keep
Before you decide on a price, put a number on holding the stock. Add warehouse space, the cash tied up in it, and the risk that it loses value or expires before it sells. For short-dated or seasonal stock that last part grows every week.
This number tells you how much room you have. A lot that costs little to hold can wait for a good buyer. A lot that loses value every week should go to the first fair offer.
2. Set a floor price before you talk to buyers
The floor is the lowest price you will accept for a lot. Set it per lot, not as one discount across everything, and decide it before the first offer arrives. Once a buyer names a number, it is hard to think clearly about what you would have taken.
A useful floor sits above the point where holding the stock or writing it off becomes the better choice. Anything above the floor is a sale you are happy with. Anything below it is not a sale at all.
Offers below the floor never reach you. Offers above it are sales.
- ₹360 offer Below your floor. Blocked, and the AI counters.
- ₹400 offer Above your floor. The AI counters at ₹420.
- ₹410 agreed Inside your rules. You approve the deal.
3. Keep the stock out of your own channels
This step protects your price. Decide where a lot is allowed to sell, and where it is not:
- Regions and towns. If your brand is strong in Mumbai and Delhi, sell the lot in tier-2 and tier-3 towns where you have no distributor, or abroad.
- Channels. Keep lots away from marketplace sellers if your own online price matters to you.
- Brand name. You can sell a lot without naming the brand in the listing, and show private lots only to buyers you pick.
The lower price should never land in front of a retailer or customer who also buys your regular stock.
Choose where each lot may sell. Keep it away from your full-price stock.
- Tier-2 and tier-3 towns Open
- The Gulf and Southeast Asia Open
- Distributors and wholesalers Open
- Value retail Open
- Mumbai and Delhi Closed
- Marketplace sellers Closed
- Brand name in the listing Hidden
- Buyers you have not approved Closed
4. Sell one level up
Selling excess stock to shops one at a time is slow. Selling it to the businesses that supply shops is fast. India has about 4 lakh FMCG distributors, and about 32 kirana stores for every one of them, so one distributor puts your stock in front of many shelves.
The useful buyers for excess stock are distributors, wholesalers, value retailers, online sellers (if you allow them) and importers. Check each one: GST registration, KYC, and what they have bought before. A verified buyer is worth more than a fast one.
One distributor, many shelves. Sell to the business that supplies the shops.
5. Package it as a lot a buyer can say yes to
Buyers decide fast when the offer is clear. A good lot listing shows:
- Product, pack size and quantity
- Batch and expiry date
- Where the stock sits
- Minimum order, from cartons to a full container
- Price per unit, or an invitation to make an offer
Mixed leftovers can sell as a closeout bundle, as long as the buyer gets the full SKU manifest with quantities. Without it, buyers either pass or offer far less to cover the unknowns.
6. Get paid before the stock leaves
Off-price buyers are often new to you. Ask for payment in advance, before dispatch. For export orders, a letter of credit works. This removes the collection risk that makes many brands avoid selling to new buyers at all.
7. Keep the buyers
The buyer who takes one lot of excess stock is a buyer for the next one, and can become a buyer for your regular range in a town your team does not cover. Keep a record of who bought what, at what price and where. Next season you start with a list instead of a blank page.
Where Lotvine fits
Lotvine runs these steps for you. You upload one stock file and set the floor, regions, channels and which buyers see each lot. Lotvine's AI finds verified buyers, pitches each lot on WhatsApp, voice calls and email in the buyer's language, and negotiates within your floor. Buyers pay before dispatch, and we arrange pickup and paperwork. There is no listing fee; you pay a commission only on what sells. See how we sell surplus stock.
Sources: FMCG distributors and kirana stores, Kotak Neo (AICPDF), May 2026.
Common questions
Will selling excess stock at a lower price hurt my brand?
Only if the lower price reaches the buyers who pay full price. Keep lots out of your core towns and channels, hide the brand name where needed, and sell to businesses one level up.
How do I set a floor price for excess stock?
Set it per lot, above the point where holding or writing off the stock becomes the better choice, and decide it before the first offer arrives.
Who buys excess stock in India?
Distributors, wholesalers, value retailers, online sellers and importers. Check GST registration and KYC before you sell.
Have stock that won't move? We'll show you who would buy it.
Send a stock file. We share a reach plan within 48 hours.