FIFO vs LIFO – Which Inventory Method for Your Shop?

FIFO (First In, First Out) and LIFO (Last In, First Out) are two ways to value inventory when prices change. Part of our inventory management guide.

FIFO – First In, First Out

Assume you sell the oldest stock first. Common for perishables (FMCG, food) where you want to avoid expiry.

Best for: Kirana stores, grocery, pharmacy.

LIFO – Last In, First Out

Assume you sell the newest stock first. Rarely used in India for physical inventory.

Best for: Mostly for tax/accounting in specific scenarios.

For Indian Shops

Most kirana and retail shops use FIFO—sell old stock first, reduce waste. Stockkeeper tracks stock movements so you always know what’s on hand.

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