Managing inventory is one of the most critical aspects of running a profitable retail or wholesale business. When inventory levels exceed demand, businesses face what is known as excess inventory — stock that sits on shelves too long, tying up capital and reducing profitability. In this article, we’ll define what excess inventory is, explore its common causes, highlight the risks it poses to your business, and provide strategies to reduce and prevent it effectively. What Is Excess Inventory? Excess inventory, sometimes called overstock, refers to products that a business holds beyond the expected demand. These items may be slow-moving, outdated, seasonal,
