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Obsolete Inventory: What It Is, How to Manage and Prevent It
Some of the stock in your warehouse will never sell. Not at full price, not at a discount, possibly not at any price. A trend moved on, a newer model launched, a supplier changed the packaging, and now those units just sit there, taking up space and quietly draining cash. That is obsolete inventory, and for ecommerce sellers it is one of the most expensive problems precisely because it is so easy to ignore. Research on inventory costs suggests that obsolescence, shrinkage, and damage together can account for a meaningful slice of total holding cost, and the write-offs land directly on your bottom line. This guide explains what obsolete inventory actually is, how it differs from dead stock and excess inventory, how to identify and account for it, and the practical steps that stop it building up in the first place.