Slow-moving Goods

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📖 Detailed Explanation

Slow-moving Goods refer to inventory items with extremely low sales volume and slow turnover within a normal sales cycle, usually caused by changes in market demand, outdated styles, overpricing, or seasonal mismatch. In foreign trade, this term is commonly used in inventory management, procurement negotiations, and clearance promotions, such as when importers ask suppliers to provide discounts or returns for slow-moving goods. Unlike 'Dead Stock,' slow-moving goods still have sales potential, just at a slow pace; unlike 'Overstock,' which emphasizes excess quantity, slow-moving goods emphasize poor liquidity. Note: In contracts, the definition and disposal clauses of slow-moving goods should be clearly specified to avoid disputes caused by subjective judgment; at the same time, a distinction must be made between 'slow-moving' and 'defective goods,' the latter involving quality issues. Foreign trade practitioners should regularly analyze inventory turnover rates and promptly reduce losses through promotions, re-export, or return shipment.

📝 Examples

1. Due to changes in European market preferences, this batch of winter coats has become slow-moving goods locally, and we suggest the supplier offer a 30% discount for clearance. (Note: The importer provides feedback on the slow-moving situation to the supplier and seeks price concessions.) 2. When signing the procurement contract, the buyer requested the inclusion of a slow-moving goods disposal clause, stipulating that if not sold within six months, the seller must accept returns or exchanges. (Note: The contract clause clearly specifies the disposal method for slow-moving goods, reducing the buyer's risk.)

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