Inventory glossary
What is Dead stock?
Dead stock is inventory that has not sold in a long time and is unlikely to sell in the future at full price.
Dead stock ties up cash in products customers no longer want. The money sitting in those units could have bought inventory that actually sells, and the longer dead stock sits, the more storage space and attention it takes up for no return.
To manage it, review sales by SKU regularly and flag items with no sales over a set period, like 90 or 180 days. Once you spot dead stock, clear it with discounts, bundle it with bestsellers, or write it off so your reports reflect real inventory value.
Example
A candle store has 40 units of a holiday scent left in March, five months after the season ended. It sold zero units in the last 90 days while every other scent sold at least 20. The owner marks it dead stock, drops the price from $18 to $9, and clears 30 units in a month, recovering some cash instead of storing it another year.
Common mistakes
- Waiting too long to admit a product is dead stock instead of acting at 60-90 days of no sales.
- Reordering the same quantity next season without checking if the item is turning into dead stock.
- Not separating dead stock from slow-moving stock, which leads to wrong reorder decisions on items that still sell, just slowly.
Dead stock and SteadyShelf
SteadyShelf's forecasts are based on real sales velocity, so SKUs with no recent demand naturally get flagged for zero or minimal reorder instead of being restocked again.
Work it out for your own products with our free tool: Shopify dead stock.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Obsolete inventory · Excess inventory · Sell-through rate · Inventory valuation · SKU rationalization
FAQ
How is dead stock different from excess inventory?
Excess inventory is stock above what you need but it can still sell over time. Dead stock has stopped selling entirely and is unlikely to move without a markdown or write-off.
How long before stock counts as dead stock?
There is no fixed rule, but many small stores use 90 to 180 days with no sales as the point to flag an item and decide whether to discount, bundle, or write it off.
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