What is Excess & Overstock Inventory?

Liquidate Inventory can help you turn your excess and overstock inventory into cash. What is excess and overstock Inventory?

Excess inventory, Overstock, Ageing stock, or surplus inventory, is the consequence of some type of mismanagement of stock demand due to factors consisting of over-buying, Seasonal Overstock, inaccurate projections, canceled orders, bad economy, unexpected climate change, or late or early delivery of goods that has not yet been sold and that exceeds the projected consumer demand for that product. Excessive stock is likewise connected with loss of revenue owing to additional capital bound with the purchase or simply storage space taken. Excessive inventory can result from over delivery from a supplier or from poor ordering and management of inventory by a buyer for the inventory. When relating to overstock or excess inventory in the form of consumer goods in a retail operation, the term refers to goods that have never been purchased by a customer but that are considered excess stock or inventory from retailers, showrooms, distributors, wholesalers shelves and/or company or brand warehouses. Excess inventory is typically discarded of in the following ways: returned to the manufacturer, brands or original distributor / wholesalers / retailers, liquidated to companies that then resell it on the secondary wholesale or retail market, sold at an extreme discount to existing customers, sold to salvage companies which then process metals and components of value. The prior damage caused by excess inventory is an early exhaust of cash flow, and later the loss of free disposable capital for investing.