← Glossary

Dead stock

Dead stock is inventory that is no longer selling and is unlikely to sell — items that are obsolete, expired, out of season, or overordered. It ties up cash and warehouse space, raises carrying costs, and eventually becomes write-offs. Brands reduce it with better demand forecasting, ABC analysis, markdowns, and bundling slow movers.

How it works

Dead stock is identified, not produced by a single formula — it's inventory with little or no sales over a chosen window (for example, no units sold in 90+ days) that is unlikely to move. Common causes are over-ordering, seasonality, obsolescence, and expiry.

Sell-through rate and ABC analysis are the usual tools for surfacing it early, before it quietly accumulates.

Why it matters

Dead stock silently drains a Shopify business — it ties up cash, consumes warehouse space and carrying costs, and often ends as a discounted write-off. Catching it early lets you act while the goods still have value: markdowns, bundles pairing slow movers with best sellers, or clearance. Better forecasting and reorder discipline keep it from recurring.

Track this automatically

Logistified calculates and monitors metrics like this across your whole Shopify catalog and turns them into reorder alerts and purchase orders.

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