Deadstock is inventory that has stopped moving — finished products that will not sell at the current price, or materials bought for a line you no longer make. It is not lost the way shrinkage is; it is simply frozen, occupying space and cash while contributing nothing.
The cost of deadstock is opportunity: every dollar sitting in unsold stock is a dollar not buying materials for what does sell. Spotting it early — by watching which items have not turned over in months — lets you act while the goods still have value, through a sale, a bundle, or repurposing materials.
For one-of-a-kind sellers like vintage and antique resellers, deadstock management is the whole game, since each item carries its own cost and an item that lingers is capital stuck in a single object. (Note: in apparel, "deadstock" can also mean unworn old-stock merchandise — a desirable thing — so the meaning depends on the trade.)
Related terms
Inventory Valuation
The total monetary value of all inventory currently in stock, calculated based on purchase costs. A key report for understanding the assets held in your business.
Shrinkage
Inventory lost to causes other than sales — spoilage, breakage, theft, miscounts, and waste — measured as the gap between recorded and actual stock.
Specific Identification
An inventory accounting method that tracks the actual cost of each individual item, rather than averaging or formula-based costs — ideal for one-of-a-kind goods.
Finished Goods
Products you have manufactured or assembled from raw ingredients and components. These are the completed items ready for sale to customers.