Excess Inventory

Excess Inventory

Also referred to as surplus inventory, denotes the surplus stock held by a company beyond what is necessary to meet demand and safety stock requirements.

While maintaining a certain level of excess inventory can serve as a buffer against unexpected spikes in demand, excessive surplus inventory can pose significant challenges for businesses. These challenges include increased storage costs, tied-up capital, risk of obsolescence, and potential disruptions to cash flow and operations.

Related Terms

Product Listings

A product listing is an item’s entry in the broader catalog of an eCommerce website, designed

Dollar

Refers to a retail outlet that specializes in selling a wide range of general merchandise and

Base Price

Also referred to as non-promoted price, it is the average price of an item across all