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Glossary · Operations

What is Dead Stock?

Dead stock is product that has not sold for a long time and is unlikely to. It takes up warehouse space, locks up capital and, in systems like FBA, generates extra storage fees. It is the quietest killer of profit in e-commerce.

Detail

Clearing dead stock, even below cost, is almost always more profitable than holding it, because the freed cash goes back into products that move. A simple rule works for identifying it: anything with zero sales in the last 90 days, or with more than 12 months of cover at the current rate, counts as dead stock.

Example

40,000 TL of stock with zero sales in 90 days, cleared at a 40% discount, frees up 24,000 TL in cash.
FAQ

Common questions on this topic.

How is Dead Stock calculated?

Clearing dead stock, even below cost, is almost always more profitable than holding it, because the freed cash goes back into products that move. A simple rule works for identifying it: anything with zero sales in the last 90 days, or with more than 12 months of cover at the current rate, counts as dead stock.

Why does Dead Stock matter?

Clearing dead stock, even below cost, is almost always more profitable than holding it, because the freed cash goes back into products that move. A simple rule works for identifying it: anything with zero sales in the last 90 days, or with more than 12 months of cover at the current rate, counts as dead stock.

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