What is dead stock?

Dead stock refers to inventory that has not sold within a specific timeframe and is unlikely to be sold in the future, often resulting in lost revenue and storage costs for the business.

How do you look for dead stock?

You can identify dead stock by analyzing inventory turnover rates, tracking sales data over a set period (typically six months to a year), monitoring product age, and identifying items that have not moved or been sold. Additionally, reviewing seasonal sales patterns and customer demand can help pinpoint products that are no longer in demand or relevant. If certain items consistently show low sales and have been in stock for an extended time, they are likely dead stock.

How can you clear out dead stock?

To clear out dead stock, you can implement several strategies, including:

• Discounting: Offer sales or discounts to encourage customers to purchase slow-moving items.
• Bundling: Combine dead stock with popular products in a bundle deal to increase perceived value and encourage sales.
• Promotions: Run targeted marketing campaigns or clearance events to draw attention to the dead stock.
• Donations: Consider donating unsold items to charities or non-profits, which can also provide tax benefits.
• Return to Supplier: Check if you can return unsold items to the supplier, especially if they are still within the return period.

By actively managing and promoting these strategies, you can effectively reduce dead stock and free up valuable inventory space.

How can I use Easy Insight to find and manage my dead stock?

Easy Insight's out of the box dashboards for inventory management systems include a page for identifying aging quantity and value. You can look at this data by category, brand, product tag, or anything else that makes sense:

You can click to dig into the underlying aging stock to find out when and where the stock came from.

Want to learn about other inventory metrics? See Metrics for other ways to help measure and improve your business.