Dead stock: Definition, Formula & Why It Matters

Also called: Aging inventory, Obsolete inventory

Dead stock is inventory that has not sold for an extended period and is unlikely to sell without a markdown. It ties up space and working capital while earning nothing. For most sellers, items unsold for 12 months are treated as dead stock.

Dead stock formula

Dead stock % = value of dead stock ÷ total inventory value × 100

Example

If $10,000 of a $50,000 inventory has not moved in a year, dead stock is 20%.

Why it matters for Reverb sellers

Even well-run shops accumulate dead stock. It is a silent profit drain: capital you cannot reinvest and space you cannot use. Regular aging reviews let you take markdowns deliberately rather than all at once.

How Verbstack helps

Verbstack flags aging listings by bucket so slow movers surface before they become dead stock.

Try it yourself with the Inventory Turnover Calculator.

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