What is Dead Stock (Obsolete Inventory)?
An authoritative operational guide, calculation formulas, real-world e-commerce examples, and margin optimization strategies.
Dead stock refers to unsold merchandise that has remained in storage for an extended period (typically 90–180+ days) with zero sales velocity and little probability of future sale at regular price.
Formula & Calculation
Real-World E-Commerce Example
A fashion merchant has 2,000 pairs of winter jackets stored in May valued at ₹15,00,000. This inventory is consuming warehouse bin space and racking up monthly storage fees.
How Dead Stock (Obsolete Inventory) Impacts Your Margins
Traps valuable working capital, incurs ongoing warehousing fees, and increases risk of inventory obsolescence, requiring liquidation discounts.
How PointNXT Automates & Solves This
PointNXT aging inventory reports categorize SKUs by days-without-sale, alerting merchandising teams to run clearance campaigns before stock turns dead.
Related Operations & Logistics Concepts
Common Questions: Dead Stock (Obsolete Inventory)
What is Dead Stock (Obsolete Inventory) in simple terms?
Dead stock refers to unsold merchandise that has remained in storage for an extended period (typically 90–180+ days) with zero sales velocity and little probability of future sale at regular price.
How does Dead Stock (Obsolete Inventory) affect e-commerce margins?
Traps valuable working capital, incurs ongoing warehousing fees, and increases risk of inventory obsolescence, requiring liquidation discounts.
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