Stop the reorder, work out your weeks of cover, then pick the exit that recovers most cash. Discounting on your main channel is the last move, not the first.
Sailo team12 min read
The shipment cleared customs on Tuesday. The thing stopped selling on Monday. You have 216 units in a spare room and a supplier asking whether you want the second batch.
Do three things in this order. Cancel or pause anything still on its way, today, before you finish reading. Work out your weeks of cover, which is the only number that tells you whether this is dead or just slow. Then pick an exit that gets cash back without teaching your regular customers to wait for a sale.
The money you already spent is gone regardless of what you do next. The only live question is which move recovers the most from here, and for cheap items the answer is almost never a public discount, because postage eats the whole recovery.
Money is probably still leaving. Find it and stop it.
The reorder. Cancel it, or at minimum push it out and convert it to a smaller quantity. If you've paid a deposit, ask to convert the deposit to a different product rather than losing it. Suppliers say yes to this far more often than sellers expect, because they'd rather keep a customer than keep $300.
Any ad spend pointed at it. Off. You're now paying to acquire buyers for a product with no margin left in it.
Any bundled purchase order that includes it. Split the order if you can, even at a worse unit price on the rest.
The second batch is what turns a bad quarter into a closed business. One dead order is a loss you absorb over a year. Two dead orders is your working capital.
Two numbers, sixty seconds.
Take the units you have left. Divide by the units you sold in the last full week. That's your weeks of cover, and it's the honest answer to "will this sell eventually".
216 units, selling 3 a week, is 72 weeks of cover. That isn't a slow product, that's a storage problem with a price tag on it. Under about 12 weeks and you have a normal, if unexciting, inventory position. Between 12 and 26 you should be actively pushing. Above 26, stop pretending it's going to recover and start choosing an exit.
Do it weekly for a month before you conclude anything, because one bad week is noise and four bad weeks is a trend in the other direction. And check whether the fall is the product or the traffic: if everything you sell dropped at once, the problem isn't the trend, it's that nobody's visiting, and what to do when nobody is buying is a different piece of work entirely.
Weeks of cover is the number to write on the outside of the box in marker. It stops you having the same optimistic conversation with yourself every Sunday.
Bea sells phone and desk accessories out of Cebu, mostly through Facebook and Instagram, roughly 120 orders a month at an average of ₱480. Nearly all of her buyers pay cash on delivery or by bank transfer.
She bought 300 units of a clip-on ring light at ₱95 landed, so ₱28,500 committed, and listed them at ₱349.
Month one: 84 units. Good. Month two: 11 units, and three bigger sellers in the same city at ₱199.
At 3 units a week and 216 left, that's 72 weeks of cover. Here's what each exit was actually worth to her, per unit, after the ₱48 she pays a courier for a small parcel and the ₱12 of packaging.
| Exit | Price to buyer | Cash back per unit | Units it could move | Effort |
|---|---|---|---|---|
| Hold at ₱349 and wait | ₱349 | ₱289 | Maybe 40 over a year | Low, but slow |
| Public sale at ₱199 | ₱199 | ₱139 | Maybe 80 | Medium, damages price perception |
| Free add-on above a ₱900 order | ₱0 | ₱0 direct, but lifted her average order | 120+ | Almost none |
| Bundle of 3 at ₱499, local pickup only | ₱499 | ₱166 per unit, no courier cost | 60 | Low |
| Wholesale to two market stallholders | ₱120 | ₱120, no packaging, no courier | 150 in one go | One afternoon |
| Job lot to a liquidator | ₱60 | ₱60 | All of them | One message |
The row that surprised her was the public sale. Cutting to ₱199 gets ₱139 back per unit, which is more than wholesale. But she'd have to find 80 individual buyers, pack 80 parcels, confirm 80 payments by hand, and answer 80 messages, and every one of her regular customers would see a 43% discount on her shop and file that away for next time.
Selling 150 units to two stallholders at ₱120 got her ₱18,000 in one afternoon, with no packing and no postage, against ₱11,120 for the 80-parcel version. That's the whole decision in one comparison, and it took her three weeks to see because "wholesale below my cost" sounded like failure and "sale" sounded like business.
She kept 30 units back as free add-ons above ₱900, which lifted her average order by about ₱140 for two months. Those 30 units earned more than the 150 she wholesaled.
This is the part people model wrong.
On a ₱349 item with ₱60 of packaging and courier cost, the fixed cost is 17% of the price. Cut the price to ₱199 and the same ₱60 is now 30%. Cut to ₱99 and you're posting parcels for nothing.
So the rank order of exits for anything under about $10 or its local equivalent is: get rid of the parcel, not the margin. Bundles, local pickup, market stalls, add-ons, wholesale, in-person events. Every one of those removes the fixed cost that's actually killing the recovery. How to work out delivery charges has the underlying arithmetic if you've never separated your fixed shipping cost from your margin.
For expensive items the calculation flips, and price cuts genuinely work, because the postage is a small fraction and the buyer pool is more price-sensitive.
One email on pricing, photographs, delivery and getting paid. No pitch, no filler.
The instinct is to put a banner on your shop. Resist it for a fortnight and think about what the banner teaches.
A visible 40% off on your storefront tells every regular customer two things: that your prices have 40% of air in them, and that waiting is rewarded. Both are expensive and neither is reversible in a season. How to run a discount without losing money goes through the versions that don't do this.
Better shapes for clearing dead stock without repricing your brand:
The one thing not to do is nothing. Stock does not improve with age, storage isn't free even when it's your spare room, and the emotional cost of walking past the boxes every day is real and it makes you cautious in ways that hurt the rest of the business.
The awkward part of a trend dying is the people who bought at the top of it. Three situations, and all three are cheaper to handle generously than to argue about.
Someone paid full price last week and now sees it half off. They will notice. Refund the difference to anyone who bought in the last 14 days, before they ask, with a one-line message saying why. On 12 buyers at ₱150 that's ₱1,800, and it buys you twelve people who tell other people you're fair. Doing it after they complain costs the same money and buys you nothing.
A pre-order you can no longer justify fulfilling. Refund in full, fast, and don't offer store credit as the first option. Offer the refund, then mention that credit is available if they'd rather. Sellers who lead with credit are the ones who end up in a public argument, and the amount involved is never worth it.
A cash-on-delivery order refused at the door because the buyer found it cheaper in the meantime. You've paid the courier both ways and the unit comes back. Two defences: confirm the order by message the day before dispatch so the buyer has a moment to cancel cheaply, and stop dispatching COD on the dead line entirely once you've cut the price. Switch it to prepaid or pickup only.
There's a fourth case worth naming because it's the one people get wrong. If you're cancelling a pre-order that people have been waiting on for six weeks, tell them before they ask, on the day you decide. A refund that arrives with an explanation is a neutral event. The same refund, arriving after three unanswered messages, is the reason someone posts about you.
A hard bit of accounting that helps more than it sounds.
Write down the loss. Actually write it: units unsold times landed cost, minus whatever you expect to recover. Bea's was ₱28,500 spent, roughly ₱21,000 recovered across all routes, so about ₱7,500 lost plus a lot of her own time.
Having the number stops it being a vague dread and starts it being a line in a bad quarter, which is what it is. It also gets it into your accounts properly, where it reduces the profit you're taxed on, and it means next year's version of you can see what a trend buy actually cost rather than remembering it as "that thing that didn't work". Working out if you are actually profitable is where that number belongs.
Then, and this matters, go and check your good products. A dead trend line absorbs attention wildly out of proportion to its size. Bea spent five weeks on a ₱28,500 problem while her ₱480-average core business, which turns over ten times that a year, ran on autopilot.
Practically, clearing stock means changing prices often, taking more small orders, and confirming more payments by hand. Sailo does the first easily: prices and products change on a live link without a rebuild, and you can hide a product rather than deleting it if you want to bring it back at a market.
Manual rails cost you nothing, because Sailo never touches that money. Bank transfer, cash on delivery, and orders handed off to WhatsApp, Instagram, Telegram, email or phone carry no commission at all, which matters a lot when your margin is already down to ₱139.
Three honest limits.
Discount coupons are a Business plan feature, and Business is $49 a month. So a coupon-code clearance costs $49 before it recovers a peso. On the free plan or on Pro at $19, you clear by editing prices by hand, which works fine but means you can't run a code for a specific group of buyers.
The free plan caps at 10 products, so a dead line in four variants is a fifth of your catalogue sitting there doing nothing. Hiding or removing it is the right move regardless.
And Sailo can't tell you a bank transfer arrived. Only your bank can. A clearance push generates a lot of small payments to confirm by hand, and 80 of them is a genuinely different job from 8. Keeping track of who has paid is the system worth having in place before you start rather than after.
Message the supplier and stop or shrink whatever is still coming. That's the highest-value twenty minutes available to you and it doesn't require any decision about the stock you already have.
Then count the units, divide by last week's sales, and write the weeks of cover on the box.
If it's over 26, don't run a sale. Ring two people who sell in person in your city and offer them the lot at a price that's clearly good for them. Getting ₱18,000 back this week beats getting ₱21,000 back across five months of packing, and the difference is five months of your attention going back to the products that still work.
Before you buy the next thing, what trends are worth chasing has the lead-time test that would have caught this, and planning a year of drops is how the calendar looks when stock is committed against dates you chose rather than dates a feed chose for you.
Written by
Sailo team
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