Dead Stock
Sellingnomics Issue information
How to deal with dead stock, and prevent it in the future
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Predicting demand is difficult, especially after the holiday season. E-commerce businesses face two challenges: maintain revenue and manage unsold inventory. Much of this inventory is nearing the end of its life cycle and is unlikely to sell. This inventory is referred to as Dead Stock.
Online stores often try to avoid dead stock rather than prevent it, resulting in lost profit margins or opportunity costs—the difference between the cost of the item and its potential sale price. In this issue, we explore tactics to help prevent dead stock.