![]() Not to mention, aged stock and dead stock takes up warehouse space that could otherwise hold headstock. It actually costs you money.Īnd without inventory management software to pinpoint what SKUs are moving and which ones aren’t, you might be hoarding dead stock unknowingly.Īs a result of poor inventory visibility and control, you’re stuck paying high inventory holding costs, storage costs, utilities, insurance, and so on to protect this inventory on the off chance that it might sell. This probably goes without saying, but holding onto dead stock doesn’t make you money. As a result, slow-moving inventory comes with some pretty hefty hidden costs. As such, they only occupy valuable warehouse space that otherwise could house fast-selling products. In some cases, they are unlikely to be sold before their expiration date and go to waste. Most common examples of dead stock are seasonal items that are no longer in demand. But it can also refer to damaged or expired units, unsold seasonal products, products that were delivered by mistake, etc. Dead stock items are the ones that don’t sell as well as predicted. ![]() So, let’s break down how your company can get rid of dead stock.īut first, what does “dead stock” mean? And how can you avoid it in the first place?ĭead stock (or dead inventory) refers to inventory items that a business considers unsellable. ![]() This ties up capital and radically drives up operational costs. But for direct-to-consumer(DTC) brands, that number typically creeps up toward 33%. Typically, a healthy business has 15% dead stock (or less) in its active inventory. Still, it’s a familiar haunt in the ecommerce industry. “Dead stock” is one of those business terms that, even if you don’t know what it means, you know it’s not good. ![]() Ecommerce brands typically carry more than 2x the “healthy amount” of dead stock. ![]()
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