{"id":176876,"date":"2023-01-20T09:56:55","date_gmt":"2023-01-20T08:56:55","guid":{"rendered":"https:\/\/packhelp.com\/?p=176876"},"modified":"2024-07-29T13:50:02","modified_gmt":"2024-07-29T11:50:02","slug":"slow-moving-inventory","status":"publish","type":"post","link":"https:\/\/packhelp.com\/slow-moving-inventory\/","title":{"rendered":"How Do You Handle Slow-Moving Inventory? The Ultimate Guide For eCommerce"},"content":{"rendered":"

Slow-moving inventory is a problem that most businesses will experience from time to time. <\/span><\/p>\n

However, it is challenging to identify the exact reason why this happens.<\/span><\/p>\n

This is because the reason behind sales being slower than anticipated for a particular product may vary greatly. <\/span><\/p>\n

What\u2019s more, the solution to each problem must match the cause itself. The retail business is fast-paced, and you need to keep pace with it.<\/span><\/p>\n

In other words, your inventory needs to move as quickly as the retail business moves (if not quicker). <\/span><\/p>\n

Knowing how to spot slow-moving inventory, discovering the underlying cause and effectively tackling the issue are key to business success. This is especially the case for businesses that sell physical products.<\/span><\/p>\n

No one wants stale, dead, obsolete stock lying around in the warehouse, eating up storage space and capital.<\/strong> <\/span><\/p>\n

The stock needs to move as forecast so that you can bring in new products, free up your capital and make top dollar from each item in stock.\u00a0<\/span><\/p>\n

In this article, you will learn what slow-moving inventory is, what negative effects it may have on your business, and ways to identify slow-moving inventory and deal with it.<\/span><\/p>\n

Let\u2019s get started!<\/span><\/p>\n

What Does Slow-Moving Inventory Mean?<\/span><\/h2>\n

Slow-moving inventory is the stock that takes longer to sell.<\/strong> These are excess inventory items that are sitting in the warehouse or storage without moving for a certain amount of time.<\/span><\/p>\n

The amount of time that it takes to determine whether the stock has become a slow-moving inventory is determined by the stock owner. <\/span><\/p>\n

T<\/span>his can be set at 90, 100, 120, or 180 days depending on the business in question, its operations and its current growth strategy.\u00a0<\/span><\/p>\n

For instance, a company that sells baked goods online and offline cannot assign 90 days to its slow-moving inventory definition.<\/span><\/p>\n

\"gift<\/p>\n

By then, the inventory will be moldy and gross. However, if a company sells <\/span>digital business card<\/span><\/a> templates, a 120-day period of time is okay.\u00a0<\/span><\/p>\n

It is also important to note that slow-moving inventory covers both raw materials and finished products. The term is not limited to finished goods.\u00a0<\/span><\/p>\n

What Are the Negative Effects of Slow-Moving Inventory?<\/span><\/h2>\n

The first problem you will come across when dealing with slow-moving inventory is having less capital and shelf space<\/strong> that could otherwise have been occupied by other fast-moving products.\u00a0<\/span><\/p>\n

Secondly, the longer you hold on to slow-moving inventory, the higher the risk of the goods becoming obsolete<\/strong>. <\/span><\/p>\n

The market value of the stock may also decline in the process, leading to business losses.\u00a0<\/span><\/p>\n

In the case of perishable goods, the products may expire and become worthless, too. <\/span><\/p>\n

There\u2019s nothing more painful than having to throw stock away. It literally feels like seeing your money being thrown away.<\/span><\/p>\n

\"A<\/span><\/p>\n

Slow-moving inventory may also be a sign of a deeper problem that you need to address asap before it\u2019s too late. Assessing why the inventory is moving slow might uncover the following issues:<\/span><\/p>\n