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What is excess inventory?

Updated September 28, 2018
Excess inventory is product that has not yet been sold and that exceeds the projected consumer demand for that product.

It usually represents some type of mismanagement of demand due to factors such as over-buying, inaccurate projections, cancelled orders, a bad economy, unforeseen weather changes, or perishable, slow moving or poorly packaged products.

Excess inventory is an inevitable part of retail, but by bartering excess products by other goods or services, companies can leverage assets that would otherwise be lost, thereby helping them to hit their margins.

Read more about the benefits.

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