Glossary · Inventory

Dead stock

Also called: Obsolete inventory

Dead stock is inventory that hasn't sold for a long period — often six months or more — and is unlikely to sell at its normal price.

It ties up cash and shelf space, and keeps adding holding cost until it's cleared. Common causes are over-ordering, seasonal leftovers, discontinued models and expired or damaged goods.

Ways to clear it include bundles, markdowns, supplier returns or swaps, and donating or writing it off.

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