Overstock and excess stock: meaning and step-by-step plan
What is overstock?
Overstock is stock a business has bought but does not sell within the planned period. This excess stock takes up warehouse space and working capital. Businesses get rid of overstock by marking it down, auctioning it or selling the whole lot in one go to a stock buyer such as Kooistra.com in Leeuwarden, who makes an offer straight away if interested.
Overstock arises wherever stock is bought on expectation: a promotion that disappoints, a season that turns out differently, a range change or an online shop that bought more than demand. It is no sign of poor management. It is part of trade. The only question is: how do you clear it as quickly and as well as possible? In this article we explain the terms, compare four sales routes and show how to sell your overstock in three steps.
Overstock, surplus stock, slow-moving and dead stock: the differences
In practice the terms are used interchangeably, but there is a difference. It is useful to know, because it partly determines what your stock is still worth.
| Term | What it is | Saleability |
|---|---|---|
| Overstock | More bought than sold; the product itself is still perfectly sellable | High |
| Surplus stock (stock lot) | What is left after a promotion, season or collection, often in mixed quantities | Medium |
| Slow-moving stock | Stock that hardly turns over any more: outdated, delisted or out of fashion | Low |
| Dead stock | Stock that has sat for months or years and no longer sells through your own channel | Very low |
Overstock vs. surplus stock
Overstock is simply too much of a good product: demand fell short of what was bought. Surplus stock is what is left at the end of a cycle: a season, a promotion, a collection. Overstock is usually current and complete (full outer cartons, one item), while surplus stock is more often mixed. Both are interesting for a stock buyer; current overstock usually gets the best offer. You can read more about the broader concept in our article on the stock lot trade and stock lot goods.
Recognising slow-moving stock
You can recognise slow-moving stock by three signals: the turnover rate falls structurally (the item no longer turns over), the item has been delisted or replaced by a newer version, and markdowns no longer help. If you look honestly at your stock list, you often see slow-moving items that have been there for months. The longer you wait, the less the lot brings in.
What does excess stock cost you per month?
Excess stock costs money every month, even if you do nothing with it:
- Warehouse space: square metres you cannot use for current stock;
- Working capital: money tied up in boxes instead of in new purchases;
- Loss of value: products age, packaging gets damaged, seasons pass;
- Handling and counting: every stock count and internal move costs hours.
That is why many business owners are too optimistic: the lot is "already there anyway". In reality, stock that sits still loses value every month.
Selling excess stock: 4 routes compared
There are roughly four ways to get rid of excess stock. Which route suits you best depends on how much time you have, how much work you want to do yourself and how saleable the lot still is.
| Route | Return per item | Speed | Own effort |
|---|---|---|---|
| Marking down yourself | Highest | Slow (weeks to months) | A lot |
| Marketplace/auction | Uncertain | Variable | A lot |
| Warehouse clearance sale | Low | Fast (days) | A lot |
| Sale to a stock buyer | Fixed offer for the whole | Fastest (an offer straight away if we're interested) | Almost none |
1. Marking down yourself or running a promotion
Marking down in your own shop or online shop brings in the most per item, but costs time, marketing and shelf space, and it hurts the image of your regular range. It works mainly for small quantities of current items.
2. Marketplaces and auctions
Online marketplaces and auction platforms reach many buyers, but you sell in small pieces: uncertain proceeds, costs per transaction and a lot of shipping and handling work. With an auction you don’t know in advance what the lot will bring in, and buyers cherry-picking the best items leave you with the rest.
3. Warehouse clearance sale
A warehouse clearance sale can shift a lot of volume in a short time at rock-bottom prices. It does require organisation, staff and visitors, and it mainly suits consumer-oriented lots at an easily accessible location.
4. In one go to a stock buyer: the fastest route
A stock buyer takes over the complete lot in one go: one offer, one transport, paid immediately. You give up some margin compared with selling item by item, but you are rid of the stock, the costs and the hassle straight away. For most businesses with serious volumes this is the best route overall, especially if the stock is starting to become slow-moving. Are you closing down completely, or is there a bankruptcy? Then also read our article on bankruptcy stock and closing-down sales.
Step-by-step plan: how to sell your overstock to Kooistra.com
- Offer your lot. Using the form at kooistra.com/partij-aanbieden, by email to inkoop@kooistra.com or via WhatsApp. Include a description, quantities and photos. An item list and a target price speed things up.
- An offer straight away. We assess the lot and, if we're interested, make a no-obligation offer for the whole right away. No cherry-picking: we take everything.
- We collect and pay immediately. Once agreed, we arrange transport, collect the lot as soon as possible and pay the invoice immediately.
Kooistra.com has been buying surplus and excess stock since 1979, and the family has been in trade since 1935. From our 15,000 m² warehouse in Leeuwarden we sell on to retailers, online shops and exporters far beyond Europe. From one pallet to thousands of pallets: offer your lot and if we're interested, you know straight away where you stand. You can read what such a sale looks like in practice in selling surplus stock to a stock buyer.
Preventing excess stock
Nobody can prevent it completely, but you can limit overstock: buy on the basis of actual sales figures instead of gut feeling, order smaller and more often when in doubt, review after every season what was left over, and set a fixed limit, for example: whatever has not sold after two seasons goes. If you clear excess stock regularly and in good time, your warehouse and working capital stay healthy.
Frequently asked questions
What is overstock?
Overstock is stock that has been bought but not sold within the planned period. The product is usually still perfectly sellable; there is simply more of it than your own sales channels can shift.
What is the difference between surplus stock and overstock?
Overstock is too much stock of a current product. Surplus stock is what is left after a season, promotion or collection and is more often mixed in composition. Stock buyers buy both in their entirety.
What is slow-moving stock?
Slow-moving stock is stock that hardly sells any more: outdated, delisted or past its season. Its value falls every month, and selling quickly to a stock buyer limits the loss.
How quickly can a stock buyer pay me?
At Kooistra.com, if we're interested, you receive a no-obligation offer straight away. Once agreed, we collect the lot as soon as possible and pay the invoice immediately.
What are realistic price expectations when selling to a stock buyer?
That depends on saleability, brand, quantities, condition of the packaging and season. A stock buyer bids on the complete lot in one go; current overstock brings in more than slow-moving or dead stock. Send photos and quantities for a sharp offer.
How do I prevent excess stock in future?
Buy on actual sales figures, order smaller and more often, review every season and use a fixed clearance limit. Whatever sits too long, sell in one go to a stock buyer before it becomes slow-moving.
Written by the Kooistra.com team, stock buyer and surplus stock wholesaler on the Apolloweg in Leeuwarden since 1979. More about us.
Have a lot to sell?
Surplus stock, overstock or a complete shop inventory? If we're interested, we make you a no-obligation offer straight away, and we pay as soon as you accept.
