Dead Stock

Dead Stock refers to inventory that has not been sold for a long time, cannot be converted into cash, or turns over extremely slowly. It is usually caused by changes in market demand, product obsolescence, order cancellations, quality issues, or over-purchasing. In foreign trade, it directly affects capital occupation, warehousing costs, and profits, and is commonly seen in inventory management, clearance, return, or resale scenarios. Unlike 'slow-moving' items, dead stock emphasizes 'almost no movement' and may have completely lost its original sales value; it is the opposite of 'safety stock,' which is intentionally held to cope with fluctuations. Note: When handling dead stock, it is necessary to assess residual value, tariffs, and return costs to avoid anti-dumping risks caused by low-price dumping; also distinguish 'dead stock' from 'scrap,' as the former may still be monetized through discount channels or secondary markets. Foreign trade practitioners should conduct regular inventory counts, set inventory age thresholds (e.g., over 180 days), and reduce losses through promotions, bundled sales, donations, or recycling.