Obsolete Inventory (Dead Stock)
Stock that has stopped selling and is unlikely to move at full price.
Definition
Obsolete inventory, also called dead stock, is product that has stopped selling and is unlikely to move at full price, whether from changed demand, seasonality, a newer version, or simple over-ordering. It is the inventory that quietly ties up cash and warehouse space while aging toward a write-off.
Why dead stock is so expensive on Amazon
It keeps paying monthly storage and, once old enough, the aged-inventory surcharge. It drags your excess-inventory ratio and your IPI, and it freezes cash you could be reinvesting in winners. On FBA it compounds, because even getting rid of it through a removal order costs money on the way out.
How to spot obsolete inventory early
Watch for sell-through trending toward zero, days of supply ballooning into the hundreds, and age buckets creeping up month over month. The earlier you catch a SKU sliding toward dead stock, the more options you have and the cheaper each one is.
How to clear obsolete inventory
Work from cheapest to most drastic: a price drop first (it keeps the listing and its rank), then a bundle with a faster mover, then Amazon's Liquidations program or an outside liquidator, and finally a removal order if nothing else clears it. Decide before it ages into the highest surcharge tier, where every extra month only makes the math worse and a write-off more likely.
Related terms
Catch dead stock while you still have options
Inventory Hero buckets inventory by age and flags units sliding toward dead stock, so you can promote or remove them before the surcharge bites.