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  • Writer's pictureElla Rolleston

5 Types of Dead Stock Wanted by Direct Liquidation Stores and Brokers

Updated: Mar 30, 2023

Dead stock is an industry term describing a variety of different kinds of products which we discuss in this blog. In general, this term describes consumer products that aren’t actively being sold now and won’t likely be sold in the future.


Storing dead stock is a major expense (read What is the Real Cost of Dead Inventory?) and a hassle for companies to deal with. While this stock is no longer flying off the shelves of mainstream retailers, the majority of dead stock is still new (or like new), useful, and saleable.


It would be a shame to have goods end up in the landfill [Stop disposing Dead Stock in the landfill - create cash for charity], which is often the case BUT...

you just need to find the right buyer AND

provide it for the right price


This is when liquidators are called in.


Our team has been in the liquidation and close-out business for 20+ years so we know the industry well and the types of inventory that liquidation stores and brokers are looking for – us included. Here we've broken it down with some examples.


Dead Stock / Dead Inventory Examples:

  1. Excess Inventory - Excess inventory are products that have not yet been sold and/or exceeds the projected consumer demand for that product. Excess inventory is also a synonym for dead stock and dead inventory.

  2. Obsolete (Defunct) Stock / Inventory – when inventory is at the end of its product lifecycle, it’s often referred to as obsolete. Typically, these are still new products but no longer the ‘latest and greatest’ so suppliers move on to manufacturing the next ‘big thing’ and typically want this inventory out of their warehouse.

  3. Customer-Returned Products – with eCommerce sales continuing to grow by up to 14.3%, thanks to the comfortable and convenient buying experience (aka your home armchair) and COVID, it’s unfortunate that eCommerce also receives the highest return rates at 20.8%. Hmmmm, I’m not really sure if that sweater will fit better in a Small, Medium or Large – let’s order all three and return the two that don’t fit – yikes! What a BIG headache and expense for retailers to figure out. Unfortunately, about 6 billion pounds of returns still end up in landfills each year. Responsible liquidation of customer-returned products helps divert good, saleable products from ending up in the garbage.

  4. Refurbished / Reconditioned Products – these products (common with consumer electronics) have typically been returned by customers and have been tested and repaired (if required) to make them ‘like new’ and saleable again – original packaging may or may not be provided. These goods typically provide a great deal for consumers as they are oftentimes significantly lower in price than the brand-new version making refurbished products a more affordable option. While these are great for consumers, many manufacturers and retailers don’t want the hassle of dealing with these products (e.g. warranty or not? etc.) or incurring warehouse storage costs.

  5. Salvaged Goods / Merchandise / Products – this is an insurance industry term used to describe goods that may have been damaged by an event such as fire, water, smoke, chemicals, temperature changes, etc., and are oftentimes claimed through an insurance policy. While products may be deemed 'damaged', they could still be useful and/or are functional but aren’t ‘retail ready’ for mainstream stores. For example, a truck transporting a shipment of appliances goes off the road. The cardboard packaging has been damaged; however, the appliance itself is fine or may have small cosmetic blemishes but the mechanics of the appliance is still operational. We’ve had a lot of experience (and success) finding buyers for salvaged goods so before you call the waste collector or recycler, contact The Charity Hub.

Overview

Call these goods whatever you want - dead stock, dead inventory, excess inventory, obsolete, and beyond – it doesn’t really matter. Just know this inventory still has life left and doesn’t deserve to be trashed before its time AND they are still great opportunities for most liquidators and closeout buyers.



Did You Know? The Charity Hub is the ONLY Liquidator for Good that liquidates products AND donates 50% of OUR net profits from the sale to the charity of the supplier's choice. Turn excess into impact!


Ready to Turn Dead Stock Into Charitable Donations?

Contact us and we'll tell you how it works - all with NO cost and effort AND great PR!

Additional Resources

About The Charity Hub

The Charity Hub (TCH) offers a unique triple-impact liquidation solution that helps companies support their corporate social responsibility and raise their Environmental, Social, and Governance (ESG) profile by buying excess, refurbished, and customer-returned inventory and turning it into charitable donations. As a Liquidator for Good, TCH makes it easy for global manufacturers, distributors, retailers, warehouses, and insurers to responsibly liquidate inventory by coordinating all logistics and sales, and then donating 50% of TCH’s net profits to the suppliers’ preferred charity. Our expertise is liquidating inventory, our power is giving back. To learn more about turning excess into impact, contact The Charity Hub.


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