Dead stock

Also calledoverstockresidual inventory

Dead stock is inventory a business has bought but cannot sell through at full price, tying up cash and margin until it is discounted or written off.

Dead stock is the mirror image of out-of-stock: one shop is short of a product while another sits on the same product as ageing inventory. In trend-driven categories, demand swings faster than purchase orders can react, so some residual stock is almost unavoidable.

An inventory network turns dead stock into sales by surfacing it to shops elsewhere that have the demand — without the holding shop running a discount or a new sales push.

See the whole picture.

The guides go deeper than the definitions — how shared inventory actually works, end to end.