What is Dead Stock?
Dead stock is defined as an e-commerce good that is no longer sellable and will most likely never sell again, frequently due to expiration, obsolescence, poor quality, or being out of season. Deadstock refers to inventory that has never been sold, excluding refunds. In other words, deadstock inventory refers to unsold items over a specified time period. Items that have not sold for a set amount of time, such as a year, are considered deadstock, which locks up your capital and warehouse space, increases operational costs, and reduces profit margins. Preventing or minimizing deadstock improves your competitiveness and can help your firm succeed.
Geeky Takeaways:
- Deadstock, also known as outmoded inventory, can be detrimental to retail organizations because it consumes resources, requires storage space, and reduces profit margins.
- To avoid dead stock, precise demand forecasting, just-in-time inventory management, regular inventory audits, stock level optimization, and product diversification are critical.
- To get rid of dead stock, give discounts or promotions, create package deals, cross-sell and upsell, donate to charity, return to suppliers, liquidate sales, repurpose or recycle, and sell in secondary markets.
Table of Content
- Why is Dead Stock Bad for a Retail Business?
- How to Calculate the Cost of Dead Stock?
- Causes of Dead Stock
- How to Avoid Dead Stock?
- How to Get Rid of Dead Stock?
- Tips to Effectively Manage or Repurpose Dead Stock
- Frequently Asked Questions (FAQs)
Contact Us