Definition
Dead stock is inventory that is not selling and is unlikely to sell at an acceptable margin — obsolete, wrong variant, expired season, or failed launch. It is overstock’s end state.
Worked example
A colourway sold 2 units in 90 days with 400 on hand and no traffic → treat as dead stock: exit via promo, bundle, outlet or removal rather than reordering.
Why it matters for replenishment
Dead stock blocks cash and warehouse space you need for SKUs that do sell. On FBA it also drags inventory health.